One evening while watching the Ten O’clock news, one state was giving ideas on how to help the public facing foreclosure. The televised special, particularly emphasized counseling when homeowners become delinquent on their mortgage payments. This is particularly interesting because it has a lot to do with the foreclosure crisis today. Ideas are constantly being thrown around, but one must stop to think if any of them in fact would actually work. Counseling, among other things, would be a possible way to help stop foreclosures and help families get back on track.
The end result of a foreclosure is a loss to the bank by the owner who is the original lending institution. It takes over a year for property to become “bank owned”. Prior to this, properties are offered as a short sale, in which the bank agrees to take less for the property than what is owed. This is not as much as a credit detriment to the homeowner as when their home is repossessed and they lose everything to the bank. This article is designed to suggest ways to eliminate the very serious problem which is a product of the recession. The number of homes and businesses taken back from their owners is skyrocketing.
Often, once a home is abandoned by the homeowner, it is not maintained and allowed to become “run down”, and in some cases the property is damaged by angered homeowners who deliberately seek to reduce the value of the property on the landowner’s behalf.
This is an emotional, as well as a financial issue when a family is faced with losing their home and must face the fact that they have no place to go. They often must impose on family members by having to with live with them, causing stress for everyone in the household.
In this great land of opportunities, we as an American people must reach out and help to provide solutions for these people. First of all, what caused the situation that they are now unable to afford the mortgage that they once qualified for when they bought their home? Is it a job loss? Is it dreadful medical bills or other such family matters that may contribute to this devastating situation? What could be done to solve this? Initially the homeowners were screened and deemed able to afford their mortgage and were granted a loan. Foreclosures may be caused from a drastic number of events or even just one serious one. These are not steadfast solutions, but rather ideas to explore how some of these numerous foreclosures may be avoided.
In the first steps when a bank identifies that a homeowner has become delinquent in their mortgage payment after a month or two, a bank appointed (accountant and counselor) is not only available but mandatory to service the family’s financial situation. In some cases, minor suggestions may be made, which may result in financial discipline, so that the third payment may be made. More often than not major problems such as a job loss may be the reason...