Home Loan Focus

This year has become the year of the F Word.  There are home foreclosures setting new records in almost every state of the country.  Foreclosures are a terrible experience for anyone that has to go through the process, but there are ways to prepare yourself so that you can avoid this process or at least mitigate the problem as much as is reasonably possible.  All does not have to be lost.  Furthermore, there is a flip side to foreclosures.

First, if you are or ever get behind on your mortgage or start to run into financial trouble there are things that you can do to avoid foreclosures.  You can renegotiate with your mortgage holder, refinance, possibly even refinance under new governmental programs that are being revamped this fall to enable people in trouble to convert their mortgage to an FHA loan.  You could even attempt to sell your home to pay off the mortgage.  Taking a loss on a sale might be better than foreclosure.

Even as a last resort you might opt to turn your home over to your mortgage holder.  This does not save your home, but it is better for your credit than a foreclosure and might make it possible for you to buy another home sooner than if you go through foreclosure.  Its not pretty but lets you survive to fight another day.

Finally, from a systematic perspective there is another perspective.  To keep the real estate market alive, someone has to buy up those foreclosed homes.  Right now, the real estate market is correcting from a number of bubbles in real estate prices.  Foreclosed homes typically sell at a discount and overall this process helps to reset and correct home prices.  Investing in foreclosed homes is not as simple as it sometimes made out to be on late night infomercials, but for people with the means and possibly with the capabilities to do light renovations, purchasing foreclosed homes could be good for business and good for the economy.  As a final thought, neighbors might even come together personally or through home associations to purchase foreclosed homes to keep neighborhood homes safe and help maintain property values.

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