12 September 2007
Foreclosure doesn't just happen to people who don't make their mortgage payments. Your homeowner's association (HOA) can take your house or condo if you're not careful. In one case, a disabled California man lost his home in a foreclosure sale because he was $123 behind on his homeowner's dues. The house was worth $280,000. Unfair? Abusive? You bet!Read More »
How Much Help Will the Government Provide?
By Gina GardnerNFNS Columnist
How much assistance can homeowners in foreclosure expect from federal agencies? According to Alan Zibel of International Business Times, not much. With consumer spending continuing, a vigorous stock market, and a jobless rate indicative of economic health, the fallout of the housing crash doesn't seem to be taking our country down, at least not as much as expected. The sky has not fallen yet.
The remaining lenders in the business appear to be correcting for past excesses as the market forces lenders to change their products and how they are sold. And almost every state has pending legislation adding more regulation and oversight (some good, some bad) to the already highly-regulated industry.
But don't hold your breath waiting for federal bailouts. While some grandstanding candidates try to make themselves look good by calling for complete reforms and open wallets, cooler heads are prevailing. Federal Reserve Chairman Ben Bernanke stated that the Board has "an obligation to prevent fraud and abusive lending. At the same time, we must tread carefully so as not to suppress responsible lending or eliminate refinancing opportunities for subprime borrowers."
Thank you, Mr. Bernanke. While speculators who got to the real estate party too late and financed irresponsibly are hurting (and yelling), people have missed the fact that the overwhelming majority of subprime or alternative borrowers are effectively making their payments. The greedy (lenders and borrowers) and those who made poorly-considered decisions (seemingly adults who can read and legally sign contracts) are paying the price and taxpayers are not lining up to bail them out.
So, if you were a victim of circumstances, defrauded, or made a mistake with your mortgage, your best bet is to call HUD at 800-569-4287 and talk to a counselor (this government agency is there to advise you and help you work with your lender or perhaps get into an FHA loan to resolve your mortgage problems). And if you are a victim of lender fraud, your HUD counselor can most likely direct you to the proper agency to make a complaint. Don't wait for a bailout–call HUD now and perhaps you can avoid foreclosure and loss of your home.
About the Author
Gina Gardner writes for an online media company specializing in mortgage and business issues. Her career highlights include auditing and tax with Deloitte, systems consulting with Experian, and loan consulting with Centex. She earned her degree in Financial Management from the University of Nevada.