Foreclosures and Debt

California Governor Arnold Schwarzenegger reveals plan for state assistance to stop foreclosures.

The Governor announced a public awareness campaign aimed at California homeowners who may be staring down the barrel of foreclosure. According to the Governor’s website, he stated,

“Our message is that lenders are willing to work with borrowers on finding a solution. But right now we are seeing homeowners who are afraid to even talk with lenders,” said Governor Schwarzenegger. “In fact, loan officials have not been able to reach borrowers in more than half of all foreclosures. Some of these homes could have been saved, so seek out a solution now before it is too late.”

This 1.2 million dollar campaign is designed to educate California homeowners how and where to seek assistance with their mortgage to avoid foreclosure. California is one of the top 10 states with the highest foreclosure of homes.

Check out the Governor’s video below on his stop foreclosure plan.

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Tags: Foreclosure News by Jacky
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Home foreclosures facts and figures are in the news, on the t.v. and online almost on a daily basis. This trend can only mean that the number of homeowners facing foreclosure or have been foreclosed on, is growing rapidly. Many homeowners are seeking information on how to save their home and stop foreclosure by any means necessary. Is a bad credit loan the answer?

There are people who were just on the door steps of foreclosure and tried to refinance their current home loan with a bad credit loan or sometimes known as a “hard money loan”, only to be told that hey did not qualify. It seems ironic that if you wanted a bad credit loan that charges more fees and higher interest rates to try and avoid foreclosure, why can’t you qualify? If you have few late payments, you have the bad credit secured with real estate , so why not qualify for the bad credit loan?

Know the difference between a bad credit subprime loan and a hard money loan. A hard money loan is generally based on the value of amount seeking to borrow and the market value of the home, and is a type of subprime loan. If you have any equity in

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California cities are exploding to the top of the foreclosure list. Three cities with the highest foreclosure rates in the nation are Stockton,Ca., Detroit, Michigan, and Riverside-San Bernardino, Ca. Two (three, if you separate Riverside and San Bernardino), in California are at the top of the list.

According to RealtyTrac.com, these cities had the highest foreclosure rates among the nation’s 100 largest metropolitan areas during the third quarter in their 2007 “Metropolitan Foreclosure Market Report”. California had seven cities in the top 25 metro foreclosure rates.

James J. Saccacio, chief executive officer of RealtyTrac stated,

Although cities in just three states — California, Ohio and Florida — accounted for more than two-thirds of the top 25 metro foreclosure rates, increasing foreclosure activity was not limited to just a few hot spots. In fact, 77 out of the top 100 metro areas reported more foreclosure filings in the third quarter than they had in the previous quarter. Still, there continue to be pockets of the country — most noticeably metro areas in the Carolinas, Virginia and Texas — that have thus far dodged the foreclosure bullet.

The breakdown of mortgage foreclosures by household puts more reality on the numbers. As shown below, even if you are not in foreclosure on your home loan, you may have a friend, neighbor or relative somewhere in this nation, who is trying to stop foreclosure on their home. [Read more →]

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Today, Thursday November 15, 2007, the House of the U.S. Congress passed a bill aimed at mortgage lenders, that requires additional safeguards in the home loan process to prevent more mortgage loan crisis.

In a reaction to the huge number of foreclosures on home loans, the House passed legislation to put the hammer down on home mortgage lenders. The main idea of the bill is to make lenders responsible for borrowers who are unable to repay their home loans because the lender did not fully qualify them. The bill also wants mandatory licensing for lenders and to issue fines to lenders for leading unsuspecting borrowers to higher-risk subprime mortgage loans.

H.R. 3519 known as “Mortgage Reform and Anti-Predatory Lending Act of 2007” , sets standards and more guidelines for the mortgage loan industry in order to prevent more homeowners from falling into the foreclosure abyss.

It is expected that more than 2 million mortgage rates will adjust up in 2008, possibly triggering an avalanche of foreclosures in effect crippling the home loan and other financial markets further.

Of course, there is always some form of opposition on the political side of this bill. Some of the Republicans are saying that this bill will make it harder for people to refinance their mortgage loans with all of these requirements of mortgage lenders. In effect, under this legislation, the home owner seeking to refinance their home loan, may not qualify for a new loan and this will also fuel the foreclosure crisis! Below are a few things the legislation will provide. [Read more →]

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If it is not bad enough that your lender has foreclosed on your home, but there is a study that indicates the amount of money owed stated in the foreclosure notices may be incorrect! You may not owe as much as stated by the lender or there may be questionable fees charged in the foreclosure process. The bankruptcy courts are finding questionable fees charged to borrowers who file for protection under Chapter 13 Federal bankruptcy laws to try and save their homes in foreclosure and stop foreclosure.

Under a Chapter 13 bankruptcy, a debtor or borrower must file a statement of assets and liabilities under penalties of perjury declaring all monies owed and all income. A Chapter 13 Bankruptcy is also known as a “reorganization plan”. In other words, a Chapter 13 filing allows a debtor to try and get their financial house in order by making scheduled payments to creditors approved by a Federal Bankruptcy Judge. The repayment plan may be spread out over several years to allow the debtor to make payments to the creditor, that may be lower than their original monthly payments. In a Chapter 13 proceeding, creditors must also file a statement to the court declaring the amounts owed by the debtor, before a repayment schedule can be approved by the Judge. [Read more →]

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