Skilled Advocates, Law and Associates Defend Homeowners Before Foreclosure Can Start
Valuable tips can warn vulnerable home owners that they might be headed for foreclosure.
Clearwater, FL (PRWEB) September 20, 2006 -- As more ARMs (adjustable rate mortgage) adjust upward and housing prices begin to dip, many Americans who can't refinance and find themselves trapped in too-high monthly payments. For those who can't make their payments, foreclosure -- the legal process by which the lender repossesses the house because the owner has defaulted on payments -- is the only way out.
Foreclosure figures just released by the Mortgage Bankers Association show that foreclosure activity fell in the first quarter of 2006 over the first quarter of 2005 for all loan categories except subprime loans. The MBA didn't specify how many of subprime loans (higher-interest loans to consumers with impaired or non-existent credit history) were adjustable rate mortgages.
The dramatic rise in home prices has been accompanied by a sharp reduction in the size of down payments made by cash-strapped buyers, a trend that could set off a spike in future www.lawandassociates.org foreclosures. New research shows homebuyers who bought houses in the first half of 2005 put less than 5% down on the purchase price, up 30.6% since 2000. According to a recent study released recently by SMR Research, a Hackettstown, NJ firm that tracks mortgage debt, nearly half (49.9%) of buyers put less than 10% down, an increase of 44.8% since 2000.
“Being on the offensive and being aware of the warning signs of foreclose gives every homeowner an added edge in vulnerable times,” said Richard Boyle of Law & Associates, www.lawandassociates.org specializes in out-of-court resolutions of mortgage litigation. While Law & and Associates are not attorneys, they counsel on behalf of homeowners who find themselves in a variety of situations. “When you are afraid of losing your home, having a spokesperson who knows how to negotiate with lenders is important. It shifts the power balance in favor of the homeowner who is trying to find options that will save their home, Boyle added, “Being aware of the signs of impending foreclosure, though, is one of the first steps of prevention.” Law and Associates will represent you no matter where you live in the United States.
Warning Signs of Foreclosure:
1:Do you have a Piggy Back Loan (exotic loan) hedging on the fact property values will increase?” Based on increasing property values exotic loans such as interest-only loans and adjustable-rate mortgages (Arms) provide borrowers with a lower monthly payment for a short period of time can create big problems.” says Dean Baker, co-director at the Center for Economic and Policy Research.
2: Do you owe more than your house is worth? The risk of foreclosures rises when borrowers take out loans in excess of 80% of a home's purchase price. Statistics suggest that many homebuyers are stretching their budgets well beyond their means. The risk is that recent buyers have such minuscule equity in their homes that if prices fall, they could owe more on their mortgage than their homes are worth. Could your home be worth less than what you owe?
3: Are you behind on your mortgage payments? Falling behind on mortgages for any reason: such as a sudden decreases in income due to the loss of spouse or job, poor financial management which contributes to nonpayment of utility bills, service shutoffs and liens against the property; failure to perform necessary repairs and maintenance which make the property uninhabitable; second mortgage scams which make impossible demands on the homeowner's limited resources.
All of these contributing factors can be addressed if homeowners contact skilled advocates in time for them to defend the homeowner before foreclosure starts. Please contact Law and Associates at 800-329-9973- or visit www.lawandassociates.org
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