Foreclosure rates in the country continue its double-digit rise as compared to statistics from the previous year. One out of 452 homes in the U.S. received a foreclosures notice last October, which is up 25 percent compared to last year.

Foreclosure filings, which include notices on defaults or sales, reached 279,561 in October which is 5 percent higher than September from the previous month. This includes repossessions of homes by banks and financial institutions.

Opposite in direction to the national figures, California rates fell by 31.6 percent in September, compared to the previous month. This downward trend continued in October by 18 percent lower than September. This slowdown in the foreclosure rates was a direct result of a new law in California which was promulgated starting September this year.

The law requires banks and lenders to discuss new terms and options to delinquent homeowners in a bid to avert foreclosures. All means should be exhausted before any notices are sent through.

The slowdown in foreclosure rates in California actually helped to put the national figures down last September. However, the increase in foreclosure activity in other states and counties caused the trend to go back up, despite the downward trend of foreclosed properties in California.

Nevada posted the highest rate in October with foreclosures for one out of every house. This is followed by Arizona which increased 35 percent from September and 176 percent from October of last year.

The previous housing boom, which resulted from subprime lending even to high-risk borrowers, resulted in a wave of foreclosures across the nation. This was due to homeowners’ failure to pay for mortgages after changes in interest rates, a feature inclusive of their subprime loans. This is compounded with the nationwide downtrend of home prices which put homeowners underwater, with their home values lower than what they owe in their mortgages.

The new law in California may help put figures down, but experts say it is not enough to help homeowners already at the end of the rope for foreclosure. Many considered it as just delaying a disaster which is more likely to come than prevented.

Start your search for Foreclosures by California Top Cities:

• Los Angeles Foreclosures
• Sacramento Foreclosures
• San Diego Foreclosures
• San Jose Foreclosures

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According to sources in Washington, the United States government has proposed a plan to help homeowners facing foreclosures. Federal officials announced the plan last Tuesday as giants in the mortgage market such as Freddie Mac and Fannie Mae launched a new approach to deal with the millions of foreclosure homes. They are offering borrowers prolonged loan terms or decreased interest rates in order to make the payments affordable.

There is, however, a catch to the plan being offered to homeowners who are in risk of foreclosures: it focuses solely on loans that were owned or guaranteed by Freddie and Fannie. Although they play a dominant role in the mortgage market, they represent only a 20% portion of US delinquent loans.

FDIC chairman Sheila Bair regards the plan as something that is barely there to answer the need of distressed mortgages and foreclosure properties. She stressed that the market has too many home loans that prove to be unaffordable—a problem that should be fixed with some of the billions that the government has spent to aid distressed banks.

Wall Street is unnerved by the crisis that the economy has suffered. Stocks still fell even if investors found some industries that are safe from the slump. The Congress announced emergency assistance for the troubled auto industry and asked the Bush administration to work with lawmakers to reach a swift compromise in a Congress session after the election.

The Federal Housing Finance Agency, who recently took control of Freddie and Fannie, announced the new plan for mortgage assistance. This new approach for avoiding foreclosures will take effect in Dec. 15. The said plan will be the model for companies that provide loan services. FHFA director, James Lockhart, encouraged investors to quickly adopt the program as the new standard in the industry.

The following are the qualifications that the borrower must have in order to be eligible for the assistance:

• Behind on home loan payments for at least three months; and
• Owes 90% or more of the worth of the home.

Those who are excluded from the list are borrowers that have filed bankruptcy and investors who do not live or occupy their homes.  

The following are some of the available help for qualified borrowers, threatened by foreclosures:

• Reduced interest rates allowing them not pay for more than 38% of housing expenses based on their gross income;
• They may also opt for extending their loan to up to 40 years; and
• Deferred, interest-free principal.

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Florida, also swept under the same financial crisis wave that is rolling across the country, had to deal with several foreclosed homes in most of its counties. Florida foreclosures continue to be on the rise that state officials need to develop plans and programs on how to deal with this real estate crisis.

The officials on one particular county have made headways in this regard. Manatee County have started finalization plans in trying the use the $5.3 million federal housing rescue package to deal with empty homes in their county.

Officials developed a program that would rehabilitate or replace foreclosed properties in most affected communities and neighborhoods. Part of this program is to identify and assist low-income buyers and their families to acquire these restructured homes. The officials made it clear, however, that no money from this fund will be allocated for homes still in the process of foreclosure or those with delinquent mortgage payments.

Unluckily for these people, they remain in danger of losing their homes,

The U.S. Department of Housing and Urban Development has created the Neighborhood Stabilization Program which formed this housing rescue package. From the overall fund of $3.92 billion, $541 was allocated for Florida foreclosures.

The fund is particularly aimed for the restructuring and rehabilitation of these properties by state and local government officials. Identified amounts were distributed per county depending on the number of foreclosure cases and empty homes.

With only a small portion allocated per county, it would be enough to buy up to 95% of a home’s current market value. This may translate to the total demolition and restructuring of around 50 homes, and the buying and redeveloping of 25 more foreclosed homes. Aimed for new occupancy, these homes will help quite a few residents and families get a home on their own at very affordable rates.

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A pre-foreclosure period is the time before official foreclosure occurs. It usually lasts from seven to sixty days, depending on the state. According to real estate experts, this is the period best for purchasing a home.

Usually, banks allow homeowners to sell their houses before they are even foreclosed. This gives buyers a chance of purchasing a house at a bargain.

Real estate experts share the reasons why it is more preferable to purchase a pre-foreclosed house than to wait for a house to foreclose and buy it from a government auction.

• Since distressed homeowners are in a rush to sell their homes before it is foreclosed, pre-foreclosed homes are usually offered at cheaper prices.
• You can ask any questions regarding the house you are about to buy since it is the homeowner you are directly dealing with.
• Less competition applies in pre-foreclosures since foreclosure auctions invite several bidders for each property.
• Longer amount of time can be spent in evaluating financial scenario in pre-foreclosure buying than in auction buying.
• Auctions can lead to emotional or egotistical decisions, and can also be overwhelming.
• There is more time to closely inspect a pre-foreclosed home and know its problems than that of an auction.
• At an auction, whole amount in cash is needed; while in pre-foreclosure buying, giving a down payment worth just a few hundred dollars can do.

It is important to see to it that the pre-foreclosed property you want to buy is free from liens or judgments. Do not forget to bring an expert to inspect the house and let you know if there are any problems with it.

The risks involved in purchasing pre-foreclosures are just the same with traditional home buying, only a lot cheaper. Pre-foreclosures can even be resold in a price higher than its cost when you first purchased it.

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At a symposium held by Long Island Housing Partnership, County Executive Suozzi spoke on the foreclosure crisis and urged mortgage companies to enforce a 90-day moratorium on foreclosures. He cited the example of JPMorgan Chase which provided troubled borrowers with a grace period of 90 days to enable them to obtain financial advice and find refinancing solutions.

Suozzi also introduced the newly-established Long Island Housing Crisis Task Force, which will consist of county officials, mortgage lenders, nonprofit groups and real estate developers that will find ways to help solve the foreclosure crisis. The task force was set up using funds provided by the U.S. Housing and Urban Development’s Neighborhood Stabilization Program.

According to economist Pearl Kamer, who works for the Long Island Association, there are over 6,000 properties on Long Island which are undergoing foreclosure proceedings. She said that many of the people who took out mortgage loans to acquire these properties were not qualified to take out loans or were granted with loan amounts way above their capacity to pay. Based on this, together with other economic factors, Kamer concluded that it would take up to four years for the housing market to stabilize.

Cynthia Rosicki, a lawyer specializing in foreclosures for legal firm Rosicki & Rosicki, also spoke at the meeting about legal services which homeowners can avail of to prevent foreclosure or to remedy foreclosed homes. She related that there are many homeowners who do not attend foreclosure hearings and who do not seek help, leaving their homes to foreclosure and repossession.

Steve Levy, county executive of Suffolk County and keynote speaker at the meeting, agreed with what Rosicki has said about the need for homeowners to seek help. Levy said that most mortgage lenders have been helpful to borrowers and have been willing to help. He added that no lender likes foreclosure because it is a lengthy unprofitable process.

Search for Foreclosed Homes by New York Top Cities:

• Bronx Foreclosed Homes
• Brooklyn Foreclosed Homes
• Jamaica Foreclosed Homes
• Staten Island Foreclosed Homes

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Governor O’Malley has extended a foreclosure program he launched in June 2007 to help homeowners keep their homes and control the soaring number of foreclosed properties across the state.

He announced that he has received commitment from at least six large mortgage companies to work with the Department of Labor, Licensing and Regulation to modify the terms of troubled mortgage loans in order to prevent foreclosures or to prevent spectacular increases in monthly amortizations.

According to the governor’s spokesman Shaun Adamec, the six mortgage companies, including GMAC, represent about 23 percent of the mortgage sector in Maryland.

Adamec applauded the six companies for their good will and expressed hope that other mortgage companies will follow their example. He said that mortgage companies do not gain anything from foreclosed homes, and neither do the homeowners and their families who, more than any other party, are the ones who immediately suffer from foreclosures.

Adamec also mentioned that the agreement is a much better option than measures such as imposition of sanctions and introduction of regulations that force mortgage companies to renegotiate with troubled homeowners and defaulting borrowers.

The agreement with the mortgage companies is an extension of the task force launched by Governor O’Malley in June 2007. Back then, the task force was mandated to combat predatory subprime lending and prevent home foreclosures.

Among the members of the task force is Thomas Shaner, head of the Maryland Association of Mortgage Brokers. Shaner said he took part in studying Maryland’s foreclosure crisis and establishing initiatives to solve the problem.

He however clarified that his organization is not involved in mortgage modifications, stating that mortgage brokers’ main task is to assist in the writing of mortgages. He says that his group supports whatever the governor introduces to protect homeowners from being forced out of their homes.

Search for Foreclosed Homes by Maryland Top Cities:

• Baltimore Foreclosed Homes
• Upper Marlboro Foreclosed Homes
• Bowie Foreclosed Homes
• Hyattsville Foreclosed Homes

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For every one percent of foreclosed homes in Florida in September 2008, Barack Obama took away 16 percentage points from McCain. For every one percent of unemployed Floridians, Obama took away almost two percentage points from McCain. McCain lost Florida, with 50.9 percent of voters delivering their votes to Obama.

AP compared counties’ foreclosure and unemployment rates to the results of the election and found out significant correlations, although the correlation between foreclosure and election results is much more significant than the correlation between unemployment and election results.

Four of the six counties with the largest foreclosure rates were won by Democratic nominee Barack Obama, with two of the counties overwhelmingly won by Republican President George Bush in 2004.

According to David Denslow, a University of Florida economist and professor, counties struggling under bad economic conditions have overwhelmingly voted for Obama hoping that the new president can make things different.

Stan Geberer, the chief economist of Orlando-based Fishkind & Associates, said that foreclosure became the surrogate for all other economic troubles, such as extremely low consumer confidence and unemployment.

When George Bush was re-elected as president in November 2004, there were only 10,350 foreclosed homes in Florida. In September of this year, there were nearly 48,000 foreclosed homes.

In 2004, there were 47,000 unemployment claims. In September 2008, the figured doubled to 94,000 claims. In 2004, the unemployment rate was 4.5%. It increased to 6.6% in September.

Twenty-seven year-old Alicia Smith has not been able to return to work since resigning from her job as store cashier in 2006 to deliver her child. She decided to vote for Obama, hoping he will do things differently and create jobs.

Fifty-three-year-old Diane Sealey has kept her job and has no problems related to foreclosure, but she sees all around her the signs of a bleak economy. She also voted for Obama.

Search for Foreclosed Homes by Florida Top Cities:

• Holywood Foreclosed Homes
• Miami Foreclosed Homes
• Fort Lauderdale Foreclosed Homes
• Orlando Foreclosed Homes

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Time is running out for 2.2% of Nevada’s homeowners who are in peril of losing homes to foreclosures. This equates to several thousands of possible foreclosure homes with ongoing eviction processes expecting completion within days, weeks and months.

With this looming threat, distressed homeowners became more frustrated when they have not yet received a concrete bailout plan from a government briefing with the Las Vegas City Council members regarding this crisis on foreclosures. Thousands of beleaguered homeowners watch helplessly as delinquent payments pile up for months especially those with adjusted mortgage rates. Fear and tension permeates the air as the much publicized government bail out plan may come in too late.

Nevada homeowners, in a race against time, are seeking all means in getting financers to bail them out from foreclosures. Mortgage companies can do nothing in this area except give advice to owners to sell their homes. This may not be a very good idea. With the current financial crises, home prices have plummeted to record low levels. Homes that were bought for $200,000 have lost much of their market value and can only be sold at half the price.

The Consumer Credit Counseling Services (CCCS) of Nevada, a non-profit agency, are trying ways to support homeowners facing this crisis by helping them explore possible options and solutions to avoid foreclosed homes. However, they made it clear that financial support to individuals and families may not happen. All they could do is to provide guidelines and educate homeowners on how to deal with this problem.

With the amount of homeowners facing foreclosures and are desperate to get help, the CCCS and other non-profit counseling agencies are swamped with requests for services which are more than they can handle efficiently. With the volume of free services demand, appointments with counselor may take up to four weeks before they can be served. There may not be enough time to handle all consumers, and some may end up finally losing their homes.

Search for Foreclosures for Sale by Nevada Top Cities:

• Las Vegas Foreclosures
• North Las Vegas Foreclosures
• Henderson Foreclosures
• Reno Foreclosures

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With this boiling economic crisis hurling across the country, the number of foreclosure homes have steadily risen for several months reaching a staggering 71% last September, instigated by an unemployment wave hitting several states and major cities.

Economists attributed the rising cases of foreclosures to two factors, basically plummeting home prices and a steady increase in unemployment. Loss of income would eventually deplete individual and family savings, and would ultimately translate to delinquent payments in mortgages and loans.

Statistics regarding foreclosure homes have confirmed this, wherein 45.5% of delinquent payments last June were due to unemployment or income loss, a significant rise from 36.3% from the same period in 2006.

Over 1,000,000 Americans now suffer from unemployment, with over 200,000 jobs lost in October alone. Most of these people have worked in steady jobs with good pay rates, prompting them to confidently take on mortgages and equity loans. They have never imagined that they will face foreclosures, until they lost their jobs. Now, they lack the means to fully pay for their monthly loan obligations, and could only take on jobs that are way below their required pay grades.

The country’s economic deterioration has affected several states resulting to massive lay-offs, company shutdowns and business closures in hard-hit industries. A vicious cycle is now unfolding as unemployment continuous to aggravate housing crisis resulting to more foreclosed homes. The housing crisis in turn generates lower revenues for housing and mortgage related industries resulting to more unemployment.

Unemployed individuals faced with the imminent threat of foreclosures, are seeking counsel from both non-profit agencies and for-profit companies that specialize in foreclosure prevention. Most of these assistance and services focus in helping customers on mortgage restructuring or modification. This can provide some relief for these Americans, until they can bounce back on their feet and get back on the road to economic recovery.

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Because of the 90-day grace period provision of the new lending reform law in New York, foreclosure fillings in the state shot down to 10 percent quashing a yearlong trend.

In a period of just one month, the NY reform law enacted Sept.1 caused a difference of 1548 foreclosure fillings prior to the last quarter ending Sept.30. The grace period of 90-days served as the catalyst for such telling figure.

This law affirms that lenders wait 90 days before starting foreclosure proceedings, thus giving borrowers more time to find ways on how to pay their debts. The state thinks that this is a good way to cut down the increasing number of foreclosed properties. In California for instance, before filing a default notice, lenders should contact the borrowers 30 days while it takes 45 days in North Carolina.

In contrast to the prospected result of trimming down the number of foreclosures, analysts are skeptical about this new law as they see it as just postponing the inevitable. They believe that after the grace period, majority of homeowners will still end up to foreclosure.

This is based on the results from other states that which adopted a similar law. In Massachusetts, case in point, foreclosure rate shot up by 465 percent immediately after the 90-day waiting period. It defeats the purpose of the waiting period if that is the case.

However, it is almost impossible to tell yet if the new law is effective in New York. The end of the fourth quarter, December, will be more significant according to analysts because it will comprise the whole 90-day waiting period starting off at September.

On the other hand, Rick Sharga, Senior Vice President of Marketing at foreclosure listing service RealtyTrac Inc., which compiled the figures released Thursday by the State Banking Department said that states should instead think of other regulations to restructure loans because they are missing the mechanism to really solve the problem.

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