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Is Foreclosure for You?

Deciding to walk away or struggle with mortgage payments

By Daniel McGinn | Newsweek Web Exclusive
Nov 20, 2007 | Updated: 5:16  p.m. ET Nov 20, 2007

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  • Posted By: loanmod @ 03/30/2008 3:47:29 PM

    Comment: After faling to get a loan modification on my own, I thought of walking away from my home. Then a friend recommended the loss mitigation experts of MIZNA ( loanmod.com ). I sent them an email and a rep called me the next day. They took me on as a client after completing a free evaluation of my situation to see if I was a good candidat for a loan mod. Once I was accepted as a client, they worked my case with my lender and got me results. Within 45 days, I had my house back and was given a fixed rate on my mortgage. I finally have a payment I can afford. My family owes everything we have to MIZNA. Those people are the best! Avoid foreclosure by getting professional help---check them out at www.loanmod.com .

  • Posted By: bmichelson @ 02/14/2008 3:11:14 AM

    Comment: I hear this question all the time regarding foreclosures and providing assistance. what's the difference between using a HUD counselor and independent company such as these "Stop foreclosures" firms" ?

    Bottom line , FHA is government sponsored and a great place to start. See their web site. It's companies like borrowerhotline.com that employ professional secondary mortgage market underwriters and compliance officers who are trained to spot technical errors in underwriting policy and procedures. All reports are sent to counsel and the Department of Housing and Urban Development. Negotiating a workout from a position of economic hardship is something most folks can and should do on there own! But to argue fro a position of being damaged under HUD definitions for predatory lending is something that requires a specialist. Maher Soliman, Managing Director borrowerhotline.com / / Newsweek "our best source" for information to keep us up to date with Washington and the nations foreclosure epidemic

  • Posted By: bmichelson @ 02/14/2008 3:08:40 AM

    Comment: I hear this question all the time regarding foreclosures and providing assistance. "Whats the difference between using a HUD counselor and independent company such as these "Stop foreclosures" firms" ? Bottom line , FHA is gvoernement sponspred and a great place to start. See thier web site. It's companies like borrowerhotline.com that employ professional secondary mortgage market underwriters and complaince officers who are trained to spot technical errors in underwriting policy and procedures. All reports are sent to counsel and the Department of Housing and Urban Development. Negotiating a workout from a position of economic hardhip is somthing most folks can and should do on there own! But to argue fro a position of being damaged under HUD defeinition for predatory lending is somthing that requires a specialist. Maher Soliman, Managing Director borrowerhotline.com / / Newsweek "our best source" for information to keep us up to date with Washington and the nations foreclosure epedemic.

  • Posted By: twebster321 @ 02/10/2008 6:01:46 PM

    Comment: Yet another casualty of the housing market here. I thought for sure I would have seen this coming. Now I'm just CHASE-ing my tail, so to speak!

    I lost my job in May of 2007. After 6 months without any prospect of finding employment, our savings were near tapped. I was discouraged, under pressure and felt like it was only a matter of time before we were going to lose our home. Fortunately for us, God came through and my wife was able to secure employment here in town. We would now be able to start catching up on our mortgage payments!

    We found out that Chase has a (barely mentioned) 'homeowners-assistance' program. It was set up to provide relief to purchasers under a new federal program and is supposed to help people like us who are having trouble making their mortgage payments. Luckily we heard about it ourselves because it certainly wasn't mentioned at all by our lender.

    So in January of this year we contacted Chase and informed them that we needed to speak with someone in the 'homeowner-assistance' program. That was more than 4 weeks ago. Both my wife and I have placed calls and left messages for the 'homeowners-assistance' department. Time and time again we were told someone would contact us. It still hasn't happened.

    We were fiscally conservative in our attempt to purchase a home which meant we did not attempt to purchase above our means. There was no intention on our part of 'flipping' the home like many others did. We didn't take an adjustable rate mortgage, we relied on an 'appraisal' and felt comfortable that the builders financing and closing company would streamline the process, save us money and in the end would protect us from overpaying for a new home - wrong!


    BOTTOM LINE:


    *A piece of legislation created by the federal government that was supposed to help folks like us who are at risk of losing their homes does absolutely nothing for me and my family because we didn't purchase our home on an adjustable rate mortgage.

    *The representatives from Chase's homeowners (un)assistance have yet to get back in touch with us and it's been well over a month since we first initiated contact with them.

    *Our clock is ticking and we are now further behind on our payments. How is it that in this day and age a company like Chase has no desire to call this homeowner to try and figure out a solution. I care about repaying my debt and I am not interested in walking away from my obligation. So what's the deal here?

    I wonder how many other homeowners are waiting to hear back while they slip further behind on payments? Oh well, I'm sure they'll be able to write off the loss but our family is certainly going to have a tough time trying to even rent a place with a foreclosure on our credit history.

    Thanks for all your help Chase... way to go!

    Sincerely,


    T A Webster
    Unsatisfied Customer
    Central FL
    twebster321@hotmail.com

  • Posted By: twebster321 @ 02/10/2008 5:59:22 PM

    Comment: Yet another casualty of the housing market here. I thought for sure I would have seen this coming. Now I'm just CHASE-ing my tail, so to speak!

    I lost my job in May of 2007. After 6 months without any prospect of finding employment, our savings were near tapped. I was discouraged, under pressure and felt like it was only a matter of time before we were going to lose our home. Fortunately for us, God came through and my wife was able to secure employment here in town. We would now be able to start catching up on our mortgage payments!

    We found out that Chase has a (barely mentioned) 'homeowners-assistance' program. It was set up to provide relief to purchasers under a new federal program and is supposed to help people like us who are having trouble making their mortgage payments. Luckily we heard about it ourselves because it certainly wasn't mentioned at all by our lender.

    So in January of this year we contacted Chase and informed them that we needed to speak with someone in the 'homeowner-assistance' program. That was more than 4 weeks ago. Both my wife and I have placed calls and left messages for the 'homeowners-assistance' department. Time and time again we were told someone would contact us. It still hasn't happened.

    We were fiscally conservative in our attempt to purchase a home which meant we did not attempt to purchase above our means. There was no intention on our part of 'flipping' the home like many others did. We didn't take an adjustable rate mortgage, we relied on an 'appraisal' and felt comfortable that the builders financing and closing company would streamline the process, save us money and in the end would protect us from overpaying for a new home - wrong!


    BOTTOM LINE:


    *A piece of legislation created by the federal government that was supposed to help folks like us who are at risk of losing their homes does absolutely nothing for me and my family because we didn't purchase our home on an adjustable rate mortgage.

    *The representatives from Chase's homeowners (un)assistance have yet to get back in touch with us and it's been well over a month since we first initiated contact with them.

    *Our clock is ticking and we are now further behind on our payments. How is it that in this day and age a company like Chase has no desire to call this homeowner to try and figure out a solution. I care about repaying my debt and I am not interested in walking away from my obligation. So what's the deal here?

    I wonder how many other homeowners are waiting to hear back while they slip further behind on payments? Oh well, I'm sure they'll be able to write off the loss but our family is certainly going to have a tough time trying to even rent a place with a foreclosure on our credit history.

    Thanks for all your help Chase... way to go!

    Sincerely,


    T A Webster
    Unsatisfied Customer
    Central FL
    twebster321@hotmail.com

  • Posted By: Upthecreek @ 01/18/2008 5:22:29 PM

    Comment: We have a negative mortgage and it is adding $2100 a month to our balance.
    We do pay $4980 a month for the loan of $945,000 but we are just getting deeper in debt, we thought we would be able to refi but the home dropped from $1,150,000 to just $700,000 in about 12 months, meanwhile our balance has been increasing.
    Any ideas? Yes I know we were foolish and believe me we regret and are very embarrassed about our situation. But my business has taken a dive also and I am earning less than half my usual income. I can barely manage to pay the $5000 anymore, in fact we are getting into credit card debt trying to keep up the home loans.
    God Bless , Up the creek!!!

    • Posted By: msoliman @ 01/28/2008 15:47:43

      Comment: You may have a case as these loans are proving to be illegal and predatory by almost everyone. lenders are quick to talk. Groups such as borrowerhotline.com and your FHA regional office are a good start for filing a complaint and seeking a negotiated settlement.

  • Posted By: Upthecreek @ 01/18/2008 5:16:54 PM

    Comment: I have a neg am mortgage which is adding $2100 a month to my loan balance. I pay $3900 every month but I still have this large negative going on. I also pay $930 a month on property taxes and $90 a month HOA. So I am paying about $5000 a month and still going nagative by the $2100 a month, i cannot refi becuase the home has dropped by $$450,000 and is worht less than my loans. What should I do? Carry on and have an even larger balance each month or ? I could rent this home for $3200, but that would not help anything.
    Any advice? And yes I know we were foolish taking this type of loan but we didn't expect the house to drop 40%. Also my business has suffered lately and I am only earning about half my usual pay.

  • Posted By: popslashgirl @ 01/04/2008 10:36:15 AM

    Comment: While I sympathize with Hyacinth's dilemma, I'm not sure I would feel so hopeless about her ability to survive without foreclosing on her house. As someone who's lived off of very little, at times, I had a few suggestions.

    First, she has a two-bed, two bath place. Why not a roommate? Surely the potential inconvenience of a roommate would be more than offset by the financial upsides of such a situation. A roommate could pay half the utilities as well as rent, and they may be willing to share grocery costs and the two of them could shop in bulk. Plus, if she finds the right roommate, she has an invaluable source of companionship and emotional support.

    My other question is what else is she spending her money on? There are ways to live cheaply and well, ways that may not be for everyone but could definitely help out. Eating at home instead of eating out, cutting out the cable or other superfluous bills, driving less and walking more, switching to state-minimum car insurance rather than full coverage, making your own coffee instead of going to starbucks...there are a hundred ways to cut costs.

    While it may not seem like much, that scrimping and saving won't make ends meet when you've got 1700 dollar mortgage payments, remember--that five dollar meal at McDonalds could buy two pounds of ground beef for a half-dozen hamburgers, or ten pounds of potatoes for gallons of soup. Those DVDs and books you no longer want can be sold to a place like Half-Price Books for a few extra dollars to pay your cellphone bill. The jewelry and fine clothing you no longer need can be sold to a consignment store. Sell your car, and use the money for either a cheaper car or public transportation. The odds and ends that everyone has that they no longer need, can be sold on eBay. There are food banks, coupons, discount programs, payment arrangements. There are second jobs, or freelancing from home. There's friends who would be willing to have you for dinner in exchange for babysitting.

    There's always a way. In my deepest, darkest hour, there's always been a way.

  • Posted By: angelface @ 12/22/2007 9:58:41 PM

    Comment: Learn more about investing by visiting investmentsforme.com

  • Posted By: nokmbk @ 12/06/2007 3:12:01 PM

    Comment: I feel sorry for any one who lost a home due to unforeseen circumstances. However, we all know you shouldn???t buy something you can not afford. Yes, O???Meally was approved on a higher income but she knew after accepting a job with a lower income she could not afford the home any longer. Her decision to try to continue paying with a lower income was not the fault the lender but solely hers. Dipping in and depleting her savings is a sure sign life is only going to get more difficult. The attempt by the lender to keep her rate @ 5% was honorable on their part but still she continued to hold on thinking the non payment of taxes would work them selves out. If you have passed due taxes lenders must protect their interests by paying property taxes.

    I work in the mortgage biz and there are defiantly predatory people out there doing business but not enough to cause the ???melt down.??? So many people have tried to jump in and take the ???ride??? but not everyone gets off at the same stop. I see the issues today being caused by sheer ???Greed??? both on the parts of the industry and consumers. Those in the industry will pay with the dissolution of companies and the company???s still standing will see large losses. Consumers will pay for their decisions with the loss of their homes, equity, and life style.

    The government should not bail out people who fail to make the proper financial decisions. If you feel they should to this then please help me!!! I lost $5 per share on a stock the other day and I want my money back. Even though I haven???t sold it the value is lower and I can???t get what I paid for it. Now, I could hold out but if I need to sell it I will loose big. I think I will cry fowl because the online broker who put the transaction through know the value could go up or down but failed to protect me when it went down.

    Does this sound similar? It???s all pour judgment calls on those who failed to read and understand what they were signing for. If the didn???t understand or afford it you should never should have signed it. Ignorance it not an excuse, it the reason you are were your at in life!!!

  • Posted By: nokmbk @ 12/06/2007 3:11:12 PM

    Comment: I feel sorry for any one who lost a home due to unforeseen circumstances. However, we all know you shouldn???t buy something you can not afford. Yes, O???Meally was approved on a higher income but she knew after accepting a job with a lower income she could not afford the home any longer. Her decision to try to continue paying with a lower income was not the fault the lender but solely hers. Dipping in and depleting her savings is a sure sign life is only going to get more difficult. The attempt by the lender to keep her rate @ 5% was honorable on their part but still she continued to hold on thinking the non payment of taxes would work them selves out. If you have passed due taxes lenders must protect their interests by paying property taxes.

    I work in the mortgage biz and there are defiantly predatory people out there doing business but not enough to cause the ???melt down.??? So many people have tried to jump in and take the ???ride??? but not everyone gets off at the same stop. I see the issues today being caused by sheer ???Greed??? both on the parts of the industry and consumers. Those in the industry will pay with the dissolution of companies and the company???s still standing will see large losses. Consumers will pay for their decisions with the loss of their homes, equity, and life style.

    The government should not bail out people who fail to make the proper financial decisions. If you feel they should to this then please help me!!! I lost $5 per share on a stock the other day and I want my money back. Even though I haven???t sold it the value is lower and I can???t get what I paid for it. Now, I could hold out but if I need to sell it I will loose big. I think I will cry fowl because the online broker who put the transaction through know the value could go up or down but failed to protect me when it went down.

    Does this sound similar? It???s all pour judgment calls on those who failed to read and understand what they were signing for. If the didn???t understand or afford it you should never should have signed it. Ignorance it not an excuse, it the reason you are were your at in life!!


  • Posted By: csigomm @ 12/06/2007 1:51:17 PM

    Comment: It is now our fault for buying a home , then what happens when you lose a job or become seriously ill. oh that's right it's our fault to. It's my fault I have type 1 diabetes that is now killing me, its my fault my kidney are failing, my heart is failing and plus other stuff. That's right I should lose my home and everything cause I got sick. Do mortgage companies care HELL no , they are crooks and only look after them selves. They knew when saling these types of mortgage loans what was going to happen. Do they stop to think about the consequences NO NO, they only care about them selves. ALl I have to say come get the house, do what you want, your not hurting me , it becomes your problem mortgage company not mine. They are as much responsbile for the this outcome as homeowners are.

    • Posted By: nokmbk @ 12/06/2007 15:19:16

      Comment: Life deals some people some hard blows. However the extra income you had when you were health could have gone to disability insuarance and other forms of insurance. Most americans dont think a head and issue like your pop up and bam your screwed. I feel for ya but the mortgage company is not responsible for your health nor paying for your living expenses. So hopefully you down size and life get a lillte better. Good luck and dont blame others!!!!

  • Posted By: csigomm @ 12/06/2007 1:42:33 PM

    Comment: No one is going to help us who can't afford our homes it's either deal with it until they come and get it or walk away. I tried exactly 22 diffrent lenders who promise or quaranteed they could refinace my home and not one could do it. At the time of buying the home have you ever thought we couldn't get a 30 year fixed, just because you rich stuck people can afford what you want who is going top help the little people. So now it's our fault when we lose a job or become serious sick. We are the ones to blame. I just having to get in and out of the hospital and emeregancy rooms are our fault now and should live with it. Dave you need to wake up and smell the coffee now everyone is like you.

  • Posted By: lolitsan @ 12/06/2007 1:34:54 PM

    Comment: I am in the berge of foreclosure. My account has been sent to my lender's attorney. They sent me a letter
    for a "Deed in Lieu" which is to give them the key to the house. My problem is I have a second on the home.
    What will happen If I sign the deed in lieu to the bank. What recourse does my second lender can do against
    me? Could you please help me find out the answer? Do I sign the deed to my first lender? Please help

  • Posted By: wiseone @ 12/06/2007 1:27:17 PM

    Comment: why should the goverment pay for your mistakes ,every one knew what are adjustable loans..how come you guys did not go for the 30yr fixed .no now all are crying for help ..as my mother all ways said you made your bed now lie in it ..............dave

  • Posted By: wiseone @ 12/06/2007 1:25:24 PM

    Comment: why should the goverment pay for your mistakes ,every one knew what are adjustable loans..how come you guys did not go for the 30yr fixed .no now all are crying for help ..as my mother all ways said you made your bed now lie in it ..............dave

  • Posted By: teragram @ 12/06/2007 11:16:29 AM

    Comment: I am curios to know ---what happens if you are not be behind yet ----but you know you will be in a fewmonths time. You are using up all your savings, have wonderful credit the only debt is home and car and have home up for sale for over 2 years Do you just walk away ?and what are the consequences? or get in deeper by accessing your line of credit to help make the morgage payments.

    • Posted By: Lady Investor @ 12/18/2007 03:03:55

      Comment: If your home has been for sale for 2 years, it is priced incorrectly. A house's value is based on what the market is willing to pay for it not on what you think it is worth or what is owed on it. If you truly want to sell your home, price it correctly and move on before you get into a deeper mess.

    • Posted By: Lady Investor @ 12/18/2007 03:00:18

      Comment: If your home has been for sale for 2 years, you have not priced it correctly. You price it based on what the market is willing to pay for it, not what you think it is worth. Try that and sell your home quickly before you get deeper into trouble. Foreclosure should not be taken lightly...

  • Posted By: supaheros @ 12/06/2007 3:49:48 AM

    Comment: i am also caught in this mortgage mess. I purchased a 2nd home before selling my 1st home and now my blind and shutter business is failing and I am running out of time. Not to mention I still have 1 year left on a business lease as well. I will not be able to pay my January mortgage payment on my new home purchased a year ago. My 1st home has a renter thank God. I am not sure what to do or how to get out of this. Not sure I will be able to find a job to support by bills and I have nowhere to cut. If anyone can offer some advice on how to approach my lender with this situation. I really want to save my credit and home.

  • Posted By: supaheros @ 12/06/2007 3:43:00 AM

    Comment: I am in a worse situation then this person. I own a blind and shutter business in arizona and things have gone from bad to worse. I own 2 homes and have 1 more year on my business lease left. I signed the contract on my new home because the builder would not refund my deposit back of $25,000. My 1st home wouldn't sell because of the market, but we still stayed hopeful. We have a renter in there now, thank God. Now with my business failing, I will not be able to pay my January mortgage payment or my lease payment on by business location. I have even gotten my insurance license to sell medicare supplements to bring in extra money, but thats going slow. My problem is where can I go and make the type of money I was making in my blinds and shutter business. I am seriously thinking of walking away from my new home. I have no idea what my options are or whom to talk to.
    supaheros

  • Posted By: mtgmanext @ 12/06/2007 12:36:57 AM

    Comment: From my 20 plus years in the mortgage business, a deed in lieu of foreclosure is generally viewed as a foreclosure, no matter how you slice it. That is unfortunate, but that is the case from a mortgage lender's perspective. The "computers" that read the credit profile and see the word foreclosure, or the mention of the word do not, to my knowledge, have the ability to differentiate. What Mrs. O'Meally might consider first find out what her credit profile looks like (annualcreditreport.com) and see how Chase is reporting her mortgage history. Explain to Chase that they certainly do not want the home back (value $50k less). She might want to see if depending on her age, (not mentioned) she might qualify in Florida for some sort of an exemption on her property tax bill. In Alabama for example, if you are over the age of 65, your property tax bill is reduced. Good Luck and not all mortgage companies are ruthless. Do your homework, shop the rate, ask for a GFE and call the BBB.

  • Posted By: kickbooti @ 12/05/2007 9:24:05 PM

    Comment: In my experience I have seen mortage companies as ruthless crooks that will try and minipulate things and try and take advantage of people. They are sneaky sniveling crooks. Someone should have some type of oversight into what they are up to. I am not for always having Government medling into our lives but these mortgage companies are acting like mafia loan sharks. What do they want? A lung or a kidney?

  • Posted By: semoresnatch @ 12/05/2007 7:18:56 PM

    Comment: For our "narrow minded" friend here who doesn't have a clue what an appraiser does. I suggest you Google it and find what I just did. Another thing, a buyer can offer a seller a million dollars for a home that would normally sell for $500,000, but an appraiser would evaluate the house with comparables in the area and come up with a suggested evaluation to the lender. The only way the seller will buy that same property is if that buyer puts down $500,000 from his own pocket, and then gets the lender to loan the rest... If you like, read below from Google...
    A component of virtually every mortgage process is the appraisal--an estimate of the value of the home you are purchasing. In most types of mortgages,some sort of an appraisal is required--you simply cannot secure a loan without it.

    What An Appraisal Entails

    An appraisal is, simply, an "opinion of value" by a professional appraiser who visits the home and inspects the size, condition, quality and function of the home. The appraiser will generate a detailed report and will generally use comparisons to the sale prices of similar homes in the area to determine a value of the home that is being appraised--known as the "subject property. Comparisons can be made to square footage, appearance, amenities and overall condition.

    An individual home's value can be adjusted up or down in relation to what properties are actually selling for in the neighborhood. For example, a home with 4 bedrooms will generally carry a higher value than a home--in the same area and in roughly the same condition--with only 3 bedrooms. A home that needs exterior painting will carry a lower value than a similar home that has been recently painted.

    Why An Appraisal?

    A professional appraisal protects both the lender--so they don't lend too more than a property is worth--as well as they buyer--so they don't PAY too much. If a buyer gets into the heat of the moment and offers a silly (too high) price on a home, the appraisal will often flush it out.

    Who Does the Appraisal?

    The appraisal will be done by a professional appraiser--in virtually all cases one selected by the lender. Unlike a whole-house inspection, where the buyer should accompany the inspector, buyers rarely are present when an appraisal is done. In most cases, the buyer does not even know the appraisal has been done until after it is completed and is in the lender's hands.

  • Posted By: tdsmithy @ 12/05/2007 4:58:39 PM

    Comment: "Appraisers" do not determine the current market prices the buyers do based on what they are willing to pay in an open and competitive market tor a property. To blame "Appraisers" for deliberately inflating value to sell larger loans is just stupid. The appraisers' job is to determine value for a property as of the effective date of the appraisal. It is not thier job to look into the future to see if the housing market will fall apart years later.

  • Posted By: teemail @ 12/03/2007 1:14:57 PM

    Comment: reply to Mitzi04@yahoo.com An attorney who represented me long ago in default negotiations with a lender under similar circumstances ( but for a great deal more money) advised me to sign nothing further; that further concessions on my part could only result in less chance of a resolution I could live with. You have threatened bankruptcy ... keep threatening it . Federal court is the very last place creditors with ever devaluating assets for collateral want to be.

  • Posted By: semoresnatch @ 11/28/2007 3:46:52 PM

    Comment: While I sympathize with all homeowners in distress of making their mortgage payments, I have to agree with several posters comments. When Arrontheappraiser wrote "Whose fault is this? It is your fault. It is the lender, the realtor, the mortgage broker, and the buyer." I do agree with most of those you blamed at fault, but the Realtor? The Realtor's job is to find you a house that will accommodate your needs. It is up to the lender to decide if you qualify for that house. However, don't forget the "APPRAISER" working for the lender who deliberately upped the value of the property so that the lender could sell you a larger loan!






    the th

    • Posted By: thetiledon @ 12/06/2007 01:10:29

      Comment: Noone has ever heard an appaiser ask "how much do you need it to appraise for?" It is only an oppinion of the value but they do have the last word on setting the value. My realtor wnet straight to a short sall on my last house because his appraiser said the value of my home had dropped $50,000. since my purchase 5 months prior. Now my value is now at $248,000. because of this appraiser, while 30 days ago a house right across the street from mine in a circle 400ft smaller with less upgrades sold, dunn, finished for $285,900. not in California but Salt Lake City Utard. Go figure

  • Posted By: SoCal Homeowner @ 11/28/2007 2:15:22 PM

    Comment: anyone want a house - will deed it to you for $25K

    • Posted By: nokmbk @ 12/06/2007 15:14:08

      Comment: were

  • Posted By: Mitzi04@yahoo.com @ 11/28/2007 12:40:23 PM

    Comment: I am going thru the same thing. I prayed for an answer and feel this acticle it talking straight to me. I found hope in this article and believe the steps I've taken are the best for me. I was a Payroll Adminsitrator making $50k annually when I bought my 2 bedroom/2bath condo.. so familiar... and then the company relocated.. offered me a position at new location but I chose to not relocate (son in highschool) and accepted a less paying job at a Non-profit Organization.. ate up my savings and accumulated credit card debt.. until I found another job.. (over a year later) I now make close to what I was making but my house payment went from $900 to $1400... and taking the job meant I had 2-3 weeks without pay.. which resulted in my falling behind... so thus began my cycle..In fact, I became just under 2 months late and my mortagage company filed foreclosure on me. I tried contacting them etc.... no luck. Finally they agreed to talk when I told them I would have to file bankruptcy... I am now on a payment plan $1700/month for a year (ouch more money) because of the legal fees etc they added to the loan... but by the Grace of God I'm making it barely... the foreclosure was discharged because I am in a payment plan with them.. I tried to refinance but couldn't get approved... so, I'm sticking it out... I'm hoping to talk with them again to readjust my monthly payment.... And I'm thinking they will since I've stuck to the new payment - hopefully the market will get better and I can sell but right now.. I'm just making it..

    • Posted By: Lady Investor @ 12/18/2007 03:31:23

      Comment: Keep looking to Him for the answers. He cares more than anyone else and I know He will help you if you only ask...

  • Posted By: lesinc @ 11/28/2007 11:51:48 AM

    Comment: It sound like she's just starting the default process. If her credit is still above 500fico score there are FHA Government loans she can qualify for with CO-signers. (etc.) If not , there are at least 5 months left before the property is sold at auction. I'd say get a renter in there month-to-month, pocket the money, and move on.

  • Posted By: lesinc @ 11/28/2007 11:47:28 AM

    Comment: Its sounds like she's just starting the default process. If her credit is above 500 fico score there are still FHA Government loans she can qualify for with CO-signers(etc.). I would say check on that A.S.A.P.If thats not an option, there's still at least 5 months left before the property is sold at auction. I would say get renter in there month to month, pocket the money, and move on.

  • Posted By: Don Camillo @ 11/28/2007 8:21:53 AM

    Comment: I agree it is too easy to walk away from your obligations and the consequences are of doing seem to be fairly manageable. I grew up in a country where as an indivudual you cannot declare bankruptcy.

    You are completely liable for your actions anf if you cannot follow-through on your financial commitments your creditors will go after your family. The collateral for a loan on a property is not only the property but also all your income beyond a certain minimum. Similarly, if there is an issue with the property or its title the seller is liable. And since you cannot walk away form your liability there is of course no need for title insurance, home inspection etc. and the closing cost for a property are a few hundred $s in notary fees.

    You see the value an effective legal framework can provide to a transaction!

  • Posted By: msoliman@borrowerhotline.com @ 11/28/2007 5:36:45 AM

    Comment: Countrywide does have problems and I am in particular no fan of the organization. Borrowerhotline.com is a great source for getting the word out where you fall victim to a lender. I am the editor and can offer you this advice. Look at the cancelled check and date posted. Also refer to anything to evidence the postmark. Countrywide is not on the top of my "best" lender list. But to hang them out to dry on this...And, don???t forget, this is a very volatile, busy and stressed filled climate for any lender and maybe this matter just has not gained the right persons attention.......yet. Thanks Newsweek, from msoliman@borrowerhotline.com

    • Posted By: tpartrg310 @ 12/05/2007 19:08:26

      Comment: I gave my countrywide home back to them! I lived in flint michigan and my loan was sold several times before ending up at countrywide. Their "Credit Councleors" told me to stop paying my credit card bills and pay them my mortgage payments instead. What a sucker I was, they have no credit counsleors they have BILL COLLECTORS! they were unwilling to work with us so I took it in the shorts and moved out, house is still vacant over 14 minth later. I told them it would be that way and the payments just kept rising.

  • Posted By: mustang99 @ 11/28/2007 5:10:36 AM

    Comment: i call countrywide and they told me and my wife that they could not do anything. We are talking about a payment that has never been late. The payment started out at $1300 and is now over $2200. oh and after the conversation with a Countrywide loan Rep he said that if we find another company to refinance the would match the other company offer. Never will we do bussines with them again.

    • Posted By: tpartrg310 @ 12/05/2007 19:52:46

      Comment: Countrywide is a ruthless, non caring org. Thet just want their MONEY! If countrywide is hounding you give em the keys back see if they have any luck recouping their "investment" MAKE them go broke they are the worst in the industry! I wish them nothing but bad luck. I gave them my home back after they were unable it adjust, the home is still theit, vacant and rotting away after 14 months. Take lower payments or sit on it for a few years either way they will loose that is what I told them and that is what will happen.

  • Posted By: inostranka @ 11/28/2007 2:26:01 AM

    Comment: America is such a country where people become depended, debts, loans, student loans, credits, then depression, and the saddest thing is, noone in this world cares if you'll lose your relative or home. If we can't go back then we just have to get through and learn from it and teach our kids not to have credit cards and not to repeat our mistakes. Work - spend, no cash - no spending. Right now everybody just needs to be strong spiritually. You are not able to save your house, at least save your NURVES(health)! We are losing our house too, but we don't care anymore, we will move to the appartment, but to get another job, and more more jobs, and work just for one house payment, what's the point to live when you don't even see your family. Enjoy your life as you can, pray, and things will miracly change, we need a strong FAITH in GOD! Good luck to everyone in finding rent and once again, save your nurves!

  • Posted By: jk63 @ 11/28/2007 2:18:55 AM

    Comment: Hundreds of thousands for 2 bedroom houses and bungalows? Makes me glad that I live In upstate NY where the weather is cold but you can buy a 4 bedroom cape cod in great condition for $73,000 and you can actually LIVE off the money you earn.

  • Posted By: nancy22 @ 11/28/2007 12:26:10 AM

    Comment: I agree with "susetteu". Please do not give up hope on the American Dream. I am 27 years old, bought a house two years ago. I've been very comfortable with my mortgage payments but come middle of next year my interest rate will become adjustable and I am scared to death that I will not be able to make my payments and lose my house. But I haveen been very proactive with my lenders, I have been calling them every couple of weeks asking about new programs that would assist home owners on adjustable mortgages, I have be reassured that they are putting together programs for home owners like ourselves. Not only do you need to be proactive but you will also need to be persistent. If it requires explaining your situation to every representative that you speak to then so be it, this is your HOME and your credit that is in jeopardy. I will be more costly for the lenders to forclose on your home, due to the houseing market, they will not be able to sell your home for 80% of your loan value, so why wouldn't they help you keep your home. Foreclosure is a lose lose situation for all parties.

  • Posted By: nancy22 @ 11/28/2007 12:24:16 AM

    Comment: I agree with "susetteu". Please do not give up hope on the American Dream. I am 27 years old, bought a house two years ago. I've been very comfortable with my mortgage payments but come middle of next year my interest rate will become adjustable and I am scared to death that I will not be able to make my payments and lose my house. But I haveen been very proactive with my lenders, I have been calling them every couple of weeks asking about new programs that would assist home owners on adjustable mortgages, I have be reassured that they are putting together programs for home owners like ourselves. Not only do you need to be proactive but you will also need to be persistent. If it requires explaining your situation to every representative that you speak to then so be it, this is your HOME and your credit that is in jeopardy. I will be more costly for the lenders to forclose on your home, due to the houseing market, they will not be able to sell your home for 80% of your loan value, so why wouldn't they help you keep your home. Foreclosure is a lose lose situation for all parties.

  • Posted By: wllccaf @ 11/27/2007 11:52:43 PM

    Comment: Is Foreclosure for You?
    Deciding to walk away or struggle with mortgage payments
    This is the title of this article, yet it does not give you any answers. Is foreclosure for me? I couldn't tell you after reading this. We all know what you just explained to us. what we want is a way to deal with it. I too, was a victum of predetory leanding. yes it was partly my fault for believing what "the experts" told me and I didn't ask the questions I didn't know to ask, but everyone has their own story. my husband and I were living comfortably where we were but we want to have one more child, well we had twins. the house got very small, very fast and we needed a bigger place. we were shocked when the mortgage broker told us how much we could afford for a new house, but we figured he was the expert , did this for living, he must know. well, we were wrong, that was one of many bad decisions we made. so who can you blame? I blamed myself at first, but I also think that the lender lead us to believe that we could afford a house that we really couldn't. he made all kinds of excuses to not include my bills and only my husbands and we were so desperate for a bigger house that we believed him. When I read this article, I had hoped that i may get some insight but the author really doesn't have a clue what hes talking about. I think he should have done a little more research before publishing this. When I see titles like this, I'm looking for information, maybe a way out that I didn't think of before. I just spent way too much time reading this and commenting on this than I need to. this is some major time out of my life that I will never get back!

  • Posted By: susetteu @ 11/27/2007 11:43:50 PM

    Comment: Instead of focusing on blame, lets focus on solutions to the immediate problem of people being dangerously close to losing their homes. As a Realtor, I can tell you that the last thing most lenders want to do is foreclose on a home. It is not a good business or financial decision for them. It costs them time, trouble, and money and is not cost effective. Many lenders now are seeing the light and are more than willing to look at restructuring a loan, often at a lower rate and with the added benefit of forgiving late fees, escrow advances, etc. While some lenders or loan servicers still have their heads in the sand and refuse to to see the writing on the wall, others are taking a proactive approach. Smart lenders are actually contacting homeowners that are on shakey grounds and offering them a restucturing package. Unfortunately, most homeowners are not aware that this is often an option and don't bother to try to negotiate with the lender or servicer. The trick to making this work is in getting to a person within the loan company who has the power to make these decisions. One may have to be persitent in working their way up the decision ladder. People who are in trouble need to know this and not just give up hope. As we see more of this, I believe that more lenders will realize that this is by far a smarter solution and will get more of these restructuring programs in place. Sometimes it takes longer for the decision makers in the ivory towers to get out of "denial", realize what is really going on in this country and come up with win-win solutions, but more and more are coming to this realization every day.

    • Posted By: SoCal Homeowner @ 11/28/2007 13:53:38

      Comment: what about loans that are now being handled by sericers due to orig lender failing and ono longer in business .....loan notes are unchangable .....i too get calls from someone different everytime and have to explain the reasons why late ...i always ask them to read the last entry on theire system ...
      I plan on walking away

    • Posted By: SoCal Homeowner @ 11/28/2007 13:49:07

      Comment: what about trying to discuss loan(s) which are now being handled by servicing companies - orig lender was New Century...they seem to be unable to work the Notes for better or lower payments

    • Posted By: wllccaf @ 11/28/2007 00:01:45

      Comment: I have to agree with you. We have tried over and over again to work with the mortgage co. but every time we call we talk to someone new and have to explain our situation over and over again. most times customer service is out of the country and we cant understand what they are saying, nor do they care to help us because they are talking off script. the unfortunate thing is that by the time you realize you are in trouble, your credit is already shot and you have no hope of negotiations or refinancing.

  • Posted By: cosmic101funk @ 11/27/2007 11:38:45 PM

    Comment: house in N J

  • Posted By: carefulwithmoney @ 11/27/2007 11:32:25 PM

    Comment: i am trying to read all this. i am scared to do bankruptcy because i think thety are scrutinize all my charges, epxenses. but then i think about the people who have been abosultely reckless and retarded with their money, and i think thats not fair. i am tryin gto be careful and these people get off. is that true?

  • Posted By: carefulwithmoney @ 11/27/2007 11:23:53 PM

    Comment: i am trying to read all this. i am scared to do bankruptcy because i think thety are scrutinize all my charges, epxenses. but then i think about the people who have been abosultely reckless and retarded with their money, and i think thats not fair. i am tryin gto be careful and these people get off

  • Posted By: Realtor Lisa Brodsky @ 11/27/2007 11:19:05 PM

    Comment: This is a sad case. I couldnt help wonder, when I was reading this, WHERE this woman's REALTOR and/Attorney were in this transaction? Then I remembered that in Florida closings are handled by title companies. I am a REALTOR in New York state. We use Attorneys in nearly all real estate transactions here. It would be foolish not to. Also, didnt she get a breakdown and/or monthly estimate of her costs from her lender before or at her closing? I dont understand how she could not have known her taxes were escrowed in her monthly payment to the bank/lender? What a shame. I would STRONGLY urge any new or inexperienced buyers to find themselves a good real estate Attorney and REALTOR before they get into somethign so important in and to their lives! If anyone needs a referral to a local (ANYWHERE IN THE COUNTRY OR WORLD) REALTOR, I can help through my relocations company. JUST ASK, there is no cost for this referral service! www.coldwellbanker.com/for/lisa.brodsky . Good Luck to this poor woman.

  • Posted By: ashu_25 @ 11/27/2007 11:03:37 PM

    Comment: What a waste reading this crap. Don't read it.

  • Posted By: Triscia @ 11/27/2007 10:22:43 PM

    Comment: It is a sad thing to see so many people losing what is the American dream-owning their own home. The nightmare has begun, and indeed, we are all to blame. Education is the key; knowlege is power. In our area, there are seminars available for people who are buying homes, but I don't know how many people avail themselves to this service. Although my husband and I have bought 3 homes in our lifetime we have consulted a real estate attorney each time. It was an extra expense, but we got answers to our questions and answers from someone not involved in the transaction. We are senior citizens who live on Social Security and felt we couldn't afford not to have the protection of a RE attorney.

  • Posted By: aarontheappraiser @ 11/27/2007 9:49:57 PM

    Comment: Who can be blamed for this nationwide problem. It is everyones fault: the lender, the mortgage broker, the real estate agent, and the buyer. It is the almighty dollar. Everyone is in it to make their money and a good percentage of the brokers and realtors do not inform the buyers of the situations they are about to sign themselves into. Also the buyers do not educate themselves and do not account for the worst case scenarios that could happen (market declines, job losses, etc). Everyone is at fault and I hope the consequences are spread to all parties involved, not just the banks or just the buyers. Everyone needs to pay their part. As for a solution, the only thing I can think of is better education for the US as a whole. Real world economics and financing needs to be taught more in our schools. Students who graduate HS should be able to understand how to use credit the right way before the financially enter the "real world". I myself have a house and a condo. I made a mistake, I have a second job now, I have a renter who pays less than my mortgage on the condo, which is better than nothing. My wife and I cut our spending, reduced our bills, and I will not be getting my Plasma for Christmas. For those in trouble, do what you can for now because this will all pass in time. It might be years, but it will pass. Good Luck.

  • Posted By: aarontheappraiser @ 11/27/2007 9:40:27 PM

    Comment: Whose fault is this? It is your fault. It is the lender, the realtor, the mortgage broker, and the buyer. It is the dollars fault. Everyone involved wants to make their money and the buyer wants a house they can't afford or can barely afford until something goes wrong. The buyer, in many cases is not well informed, and takes the brokers advice. "Hey if we qualify, we must be alright with the loan." I believe thre should be more real life economic and financial planning classes in high school. Everyone should be required to understand the basic principles of real world finances before they enter the "real world". For now, the market will continue to decline and foreclosures will grow. I have a house and a condo which I rent for less than my mortgage payment. I picked up a second job, even though it is not desirable. Me and my wife cut our spending and reduced bills such as internet and cell phone minutes, etc. No HDTV for me this Christmas, maybe in a year or two. Educate yourself and educate others. This will pass, it will take time, but it will pass.

  • Posted By: Lonewolf66 @ 11/27/2007 9:31:15 PM

    Comment: Hi, All
    Home's and Mortgage Bush and other Leaders Don't care one Bit about use little people and never will.
    No matter how much they say they will Thats is why so many people are Hurting and killing people.
    ? where is are rights as the little People with little money hardly Making it as it is?

  • Posted By: loggerswife777 @ 11/27/2007 9:13:54 PM

    Comment: Well ramkumar this going on all over the united states not just Florida, Which I do not live in Florida and I was raised where you had to be street smart to live and street smart get you know where in mortgage, stocks, bonds or any Investment . You need someone that know about the Law in what ever Field you are trying to deal in and hope you know them well enough they are trust worthy person and have your best interest at heart and not just money grubbing at theirs. Because this world is very different then 50 to 100 years ago now days its all about the money and self. Where 50 years ago a hand shake would seal a deal and you could trust that deal to be true and fair on both ends. So street smart I don't thanks so Because on the streets someone take advantage of you beat crap out them shake hands and you both go your way or become best friends. In Marketing its dog eat dog and if you don't like you sue them tie everything up in court for years till some stranger decides your fate.
    .

  • Posted By: jrmkrmr @ 11/27/2007 8:52:55 PM

    Comment: I wish all you people would understand that florida Good place too live. You have to watch out for the big con too the little one. Houseing in florida is very full . And the are people out there. that well do anything too get your too look they'er way. So there is a lot of con out there.

  • Posted By: jrmkrmr @ 11/27/2007 8:43:10 PM

    Comment: All you people ho have come to florida. should have look into the houseing . Be for you bought the grant buy. because you got taken. Florida these day can be a big misstake. My wife an I seen it all. A big con. Sorry but that is the way it is people. You have to watch yourself at all time down here. street smart if you know what that is.

  • Posted By: loggerswife777 @ 11/27/2007 8:22:09 PM

    Comment: I feel for anyone with a mortgage right now. My husband and I have fallen behind on our payments I called and tried talking to the mortgage company. It did not help I tried to explain my husband had got a log on him at work and we were waiting on workmans comp. to start paying and we had no ins. The guy I talk to told me you spending money on other thing like your husbands Dr and not making your house payment. So you must not need a roof over your head. So we got behind I was working on trying to catch it up and they sold our loan to someone else for the 4th time in 4 years. They had aatt. Write me a letter and say they need to talk to me well I had just talk to someone the week before. But I called again they took all finc. stuff on us again and upped the amount we owed from 1800. to 3000 then next person I called said we owed over 5000 to ask about where other charge came they could not tell me. I ask for my appraisal they sent to me and was not even my house listed it said we had ten roof and concrete floor, and lived close to school and fire house and major hwy. and have catfish pond and fruit orchard Take in mind now I have a modeler home with wood siding single roof and live 24 miles from city and have two pear trees and pond. he said place was worth 98,000 3.3 acres land with pond and double wide home and here u be lucky to get 30,000 now at time we bought u could got about 65,000 out it, and we fenced 60,000 because the agent taking care of the loan would not let us have any smaller amount. When I got to asking ? about this I got my title to double wide in mail from them with no mortgage showed on it then today got a foreclosure in the mail showing land for sale with no house listed and my 1650.00 cheek back in mail but they still have my ins. cheek where a tornado hit our house and they would not release cheek to help fix it so I said put ins money on house and I fix. and that is more then enough to catch my house payments up to give us a fresh start again but now I had to get a friend of mine to look at this he aatt. here my point is I hope and pray That everyone is not having the trouble I am having trying to get help with a mortgage and if I never see one again it will be to soon for me.

  • Posted By: Discussed with the American Way @ 11/27/2007 8:06:01 PM

    Comment: One last comment. One size does not fit all. Many have lost their income. Those that have lost their jobs did not create this economy, but have to make it through by whatever means are available to them. Good luck to you all.

  • Posted By: 1tatoladybug @ 11/27/2007 8:05:54 PM

    Comment: Of course no one wants to loose their home and we all understand that, but what's a person to do when the rental properties are just as expensive. I would suggest possibly looking for someone who could move in to help out. Maybe a college student or someone newly arriving into the area and are willing to agree to a short term lease. Dont give up.

  • Posted By: Cfields @ 11/27/2007 8:01:41 PM

    Comment: Ummmm... cbloom57, your arrogance is totally unneeded on this blog. Who cares that you have an MBA. That fact offers no help to those in this unfortunate situation. I hope that in the future you will use better diplomacy (obviously not gained through your studies acquiring your MBA) and much more sensitivity. I guess your mother never taught you that old saying "If you do not have anything nice or positive to say, then do not say anything at all". Besides, it is obvious by your remarks that you are weak in other areas, otherwise you would not need to knock others down to make yourself seem intelligent and informed. I hope you have a beautiful day as you bask in the only accomplishment of obtaining your MBA. But, I digress?????????..
    I send blessing to all of you currently facing stressful times due to the housing market .

    • Posted By: flounderhead59 @ 11/28/2007 01:45:27

      Comment: Ummm...Cfields, Sorry to say but I agree with cbloom57. And no, I don't have an MBA. I do have common sense and want everything explained to me that I don't have figuered out myself. As far as reminding cbloom57 about minding ones words, remember about glass houses and people that throw stones.

  • Posted By: mikihooker @ 11/27/2007 8:01:35 PM

    Comment: WHAT ARE MY OPTIONS WHEN CREDIT SCORE DROPPED FROM 750 MID SCORE TO 550 MID SCORE DUE TO SIGNING UP W/ATTORNEY NETWORK? PERFECT PAYMENT HISTORY PRIOR TO SIGNING UP 4 CREDITOR ACCTS W/THIS AGENCY. BECAUSE THE AGENCY DID NOT GET CREDITORS BUY IN W/IN 30 DAYS, MY CREDIT WAS IMPACTED NEGATIVELY. WHAT ARE MY OPTIONS AS I AM NOW UNABLE TO A LOAN APPROVED FOR OVER $800k IN MORTGAGES IN PROGRESS PRIOR TO SIGNING UP W/THE AGENCY.

  • Posted By: Cfields @ 11/27/2007 7:59:27 PM

    Comment: Ummmm... cbloom57, your arrogance is totally unneeded on this blog. Who cares that you have an MBA. That fact offers no help to those in this unfortunate situation. I hope that in the future you will use better diplomacy (obviously not gained through your studies acquiring your MBA) and much more sensitivity. I guess your mother never taught you that old saying "If you do not have anything nice or positive to say, then do not say anything at all". Besides, it is obvious by your remarks that you are weak in other areas, otherwise you would not need to knock others down to make yourself seem intelligent and informed. I hope you have a beautiful day as you bask in the only accomplishment of obtaining your MBA. But, I digress?????????..

    I send blessing to all of you currently facing stressful times due to the housing market .

  • Posted By: mikihooker @ 11/27/2007 7:52:37 PM

    Comment: question

  • Posted By: mikihooker @ 11/27/2007 7:52:13 PM

    Comment: question

  • Posted By: roseycheeks @ 11/27/2007 7:23:28 PM

    Comment: My husband and I are awaiting Sherriff's sale on our home in March. We had a buyer for our house which fell through less than 24 hours before settlement. We have had our house on the market for over a year. We had a mortgage broker who "added" to our income in order to get the approval for the mortgage. When my husband was not being paid correctly we fell behind and were never able to catch up.

    My advice is to sell it and try the short sale. It actually takes over a year for the foreclosure procedure to start to when the sherriff's sale actually occurs. We have just received an agreement of sale and have submitted it to our lender for a short sale. With the short sale, you will save your credit and in some cases your default may be completely erased from your credit. We were told by a friend in the mortgage business that if you have a foreclosure on your credit, especially with the market and the financing today, you will not be able to purchase a home within at least the next 3 to 4 years let alone get any credit for anything. A foreclosure on your credit is one of the worst things you can have. Also, if you just walk away and give the lender your deed it will still show as a foreclosure on your credit. Best of luck to everyone in our situation out there. I hope you are all blessed with the wisdom needed for the situation.

  • Posted By: Discussed with the American Way @ 11/27/2007 6:52:07 PM

    Comment: foreclosurecoach - Thank you for your honesty and life lesson. I hope many people read your message and it opens their eyes.
    To all others - Thank you for your stories. I have learned alot today.

    • Posted By: redunder @ 11/27/2007 19:06:43

      Comment: Discussed, I'm embarrased that I've taken such a combative approach to debating with you. Thanks for taking the high road and have a good day.

      • Posted By: Discussed with the American Way @ 11/27/2007 19:15:04

        Comment: REDUNDER: Back at you!

  • Posted By: notaflipper @ 11/27/2007 6:51:13 PM

    Comment: There is one other aspect of this crisis that I never see talked about. What about all of those people who are not in danger of losing their housees, but are stuck there indefinitely because of this market? I would guess that most people affected by this are young people in their 20's and 30's (like me) who bought a house at the point in their life when all of our parents did, not because we wanted to flip it. We were just looking for a home. Anyway, not its a few years later and the chances of selling your house are about zero. This affects peoples lives, not just their credit. I know three people (myself included) who had to forego taking jobs that paid much more because we can't move. So in a small way this also slows down the economy because people can't move forward with their careers, thus contributing more money to the economy from a higher income. Just for the record, I am not in danger of losing my house. I will be making my payments on time to this house that feels more like a prison everyday.

  • Posted By: pitrow @ 11/27/2007 6:45:34 PM

    Comment: I was a single mom in a similar situation. I got a second job and if I had needed would have gotten a third. What has happened to our pride??? We did this to ourselves so we need to suck it up. It has been three years and I am back on track, perfect credit, and not one late payment. Seems most people want to take the easy road out.

  • Posted By: pitrow @ 11/27/2007 6:41:00 PM

    Comment: I was a single mom in a similar situation. I got a second job. What has happened to our pride? We did this to ourselves, therefore suck it up and keep going. It has taken me three years and I am back on track. My credit is perfect and never had a late payment. Too many people want to take the easy way out.

    • Posted By: redunder @ 11/27/2007 18:47:28

      Comment: God bless you, you're the type of individual for whom home loans are designed. Congratulations on getting through tough times and for having the heart and backbone to maintain honor and dignity through a difficult period.

      • Posted By: pitrow @ 11/27/2007 18:52:48

        Comment: Thank you!

  • Posted By: foreclosurecoach @ 11/27/2007 6:22:43 PM

    Comment: This forclosure epidemic comes as no surprise to me at all. I worked in the mortgage industry from about 10 years. When I started out in the mortgage industry in Alabama in 1992 we had to learn the business from the ground up. I started with a small mortgage broker. We had to learn the business from originations to satisfying post closing conditions. We were in business to make our customers lives better. Then i moved to Georgia and started with a larger mortgage company. The mentality of that company and so many others was about making money. When the interest only loans and other type of sub-prime loans came about it got worse. Everyone was so busy trying to make a dollar. The loan officers and mortgage brokers were busy trying to make a commission. The loan clients were trying to get all the house they could for the smallest amount of downpayment and the smallest monthly payment possible. It became like a "don't ask, don't tell" in the mortgage industry. The mortgage clients did not ask a lot of questions and the mortgage companies did not offer a lot of information. All involved parties were just focused on closing the deal now. no one was looking at tomorrow. No one was even wanting to think about tomorrow. It was such a good ride as long as everyone closed their eyes and rode blindly. Just like all blind driving then came the crash. Now America is facing he fall out from such unthinking behavior. I left the mortgage industry in 2003 because i saw the disaster coming. I am back in the service business though in the capacity of helping people save their homes from foreclosure. I am willing to help anyone with a foreclosure issue. If you have any questions or issues you may contact me at kaizenfinancialmanagement@yahoo.com. Just because you are in a foreclosure situation does not mean all hope is lost.

    • Posted By: troy555 @ 11/27/2007 19:36:57

      Comment: you are an idiot, if you want to blame some one blame your self not the mortgage industry. I can see you now, riping off home owners who are about to loose their home.

  • Posted By: k-dee @ 11/27/2007 6:22:30 PM

    Comment: It is unfortunate that so many of us don't learn to handle our money and credit better. I think so many are used to living above their means that they don't consider the cost should their lifestyle take a hit for the worse. We need to be careful that we don't condition our children to think that it's okay to live on credit. Best bet to avoid this for our children is to teach them to manage their money properly and expect the unexpected, don't spend more than you make and have an emergency fund. We could all learn from others' mistakes. We need to get out of the mentality of "instant gratification". We would all benefit from it. These are very hard lessons to learn and I'm sure many would turn back the hands of time if they could to make different decisions based on their knowledge from the future. As they say, hindsight is always 20/20. This is a good wake up call for all.

    • Posted By: mrs12106 @ 11/27/2007 19:41:36

      Comment: Also keep in mind, not all foreclosures are due to bad money management. What about people who have to relocate. My husband and I are in a bind and really struggling to make this house payment. We had to relocate for his job, in which he makes really good money, but we were stuck with a house payment and now new rent in the area we currently live in. We had renter's for partial of the house payment (because who would want to rent when you can buy for the same price?) We can't sell because of this market. Its not all because people do not know how to manage money. Some people have different circumstances...

  • Posted By: coocoot @ 11/27/2007 6:22:02 PM

    Comment:
    a person and there family has to work 2 or more jobs to keep there head above the water theses days

  • Posted By: sundevil_44 @ 11/27/2007 6:17:58 PM

    Comment: The problem is the system. 2% of the people have more than 50% of the wealth and the wealth continues to shift toward the richest 1%. How long will we take it?

  • Posted By: kcoleman0921 @ 11/27/2007 6:17:26 PM

    Comment: Getting a subprime rate @ 9.5% and not knowing if taxes were inclued is her fault, not the broker or bank. The HOA is not part of the impounds anyways for condos. They always claim I was lied to when they get into trouble, but the facts are this lady went ahead and bought a home under those terms. Deal with it, this is a grown up world and we need to keep our obligation to lenders/ banks and not just walk away when it is no longer convienient to make the mortgage payments.

    • Posted By: Don Camillo @ 11/27/2007 20:00:13

      Comment: I agree, it is just too easy to abandon your responsibilities.

      I grew up in a country where individuals cannot declare bankruptcy. If you cannot service your debts you will inherit them to your kids, grandkids etc. There is a very different level of accountability ! That does not only apply to loans but also the property itself and its title. If there is an issue with the house or its title then you are liable as a seller. Of course, there is no need for title insurance, title companies, home inspection etc etc and closing cost on a property are a few hundred $ for notary fees. Your collateral for your loan is not only the property but also your entire income and you have to open a life insurance in the name of your lender to make sure you can keep them harmless in case of a tragic accident.

      In that environment our housing market crisis is completely unthinkable. I have bought several properties without ever having seen them and I don't even have the slightest concern about that. Alegal system based on civil law is a lot more effective protecting all parties in a property transaction

  • Posted By: Discussed with the American Way @ 11/27/2007 6:14:08 PM

    Comment: cbloom57
    I worked for Realtors and I know how mortgage companies get their business. When was the last time you were given your closing papers in advance to read (which would take 6 months) and read them all? Heck, none of us would purchase homes then. The contracts are to protect the lender, not the buyer.

    • Posted By: cbloom57 @ 11/27/2007 19:13:30

      Comment: I've purchased three homes in my lifetime and always knew the terms of the contract before signing the closing papers. I knew the interest rate, the principal, the term, the monthly payments, the cost of insurance and property taxes, and whether I wanted them impounded or not. I also knew if the loan was fixed, adjustable (if adjustable, what the index was, the margin, how often it would adjust, etc.), if it was as negative amortization loan, if PMI was being charged, how much money I would need at closing, etc. In other words, I did my homework and understood 100% what I was doing. Also, the escrow company can give you an estimated closing statement before you sign the papers. Too many people blindly go into purchasing the largest asset they'll ever own, and don't know what the heck they're doing. Maybe it's because I have an MBA that I'm thorough about these things, but to me, it's just common sense.