The number of homes in foreclosure has soared to more than 13 million houses across the U.S.. While no homeowner wants to have their property foreclosed upon by the bank, many have no other option.
The enormous amount of real estate in foreclosure has manufactured a domino-effect. When mortgage service providers foreclose on houses, mortgagors lose their property and all funds contributed toward the purchase. Home loan default causes lenders to lose revenue through costs associated with the foreclosure process and inability to collect late payments.
Property owners throughout the community experience a loss in house value when communities suffer from extensive levels of foreclosures. Entire communities lose funding that was once acquired from property taxes and used to better infrastructure and schools, and deliver emergency services.
When house values decline property owners are often left owing more on their home than it is worth. Mortgagors that have underwater mortgages find it challenging to qualify for mortgage modifications or mortgage refinance. Those that don't qualify for reduced payments are oftentimes forced into bankruptcy or run the risk of losing their property to foreclosure.
There are many foreclosure prevention strategies that are offered, but homeowners need to be persistent in negotiating with their bank. Once borrowers become late with mortgage installments their account is handed over to a bank loss mitigator.
Mortgage lenders can start foreclosure when loan payments are 31 days delinquent. The majority of lenders choose to work with homeowners and enter into a workable plan that lets them continue living in their home.
If homeowners are able to pay off late amounts within a couple of months, banks usually accept the payments and no further action is taken. If homeowners don't have the ability to pay the past due amount in full, banks can supply other options. A couple of the more common include: deferred payments, mortgage loan forbearance, loan modification, and mortgage refinancing.
People with homes in foreclosure might find it advantageous to acquire HUD housing counseling.Counselors are available to discuss available programs and help homeowners fill out applications. Available services and a list of nationwide housing counselors is provided at the HUD website.
The enormous amount of real estate in foreclosure has manufactured a domino-effect. When mortgage service providers foreclose on houses, mortgagors lose their property and all funds contributed toward the purchase. Home loan default causes lenders to lose revenue through costs associated with the foreclosure process and inability to collect late payments.
Property owners throughout the community experience a loss in house value when communities suffer from extensive levels of foreclosures. Entire communities lose funding that was once acquired from property taxes and used to better infrastructure and schools, and deliver emergency services.
When house values decline property owners are often left owing more on their home than it is worth. Mortgagors that have underwater mortgages find it challenging to qualify for mortgage modifications or mortgage refinance. Those that don't qualify for reduced payments are oftentimes forced into bankruptcy or run the risk of losing their property to foreclosure.
There are many foreclosure prevention strategies that are offered, but homeowners need to be persistent in negotiating with their bank. Once borrowers become late with mortgage installments their account is handed over to a bank loss mitigator.
Mortgage lenders can start foreclosure when loan payments are 31 days delinquent. The majority of lenders choose to work with homeowners and enter into a workable plan that lets them continue living in their home.
If homeowners are able to pay off late amounts within a couple of months, banks usually accept the payments and no further action is taken. If homeowners don't have the ability to pay the past due amount in full, banks can supply other options. A couple of the more common include: deferred payments, mortgage loan forbearance, loan modification, and mortgage refinancing.
People with homes in foreclosure might find it advantageous to acquire HUD housing counseling.Counselors are available to discuss available programs and help homeowners fill out applications. Available services and a list of nationwide housing counselors is provided at the HUD website.
About the Author:
Real estate investor, Simon Volkov further discusses the impact the number of homes in foreclosure has had on America. He also shares resources for foreclosure prevention programs and tips to avoid foreclosure at SimonVolkov.com.
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