The foreclosure crisis still proceeds to affect millions of homeowners today with no end in sight. It is anticipated that there will be another 4.5 million foreclosure filings processed in 2010.
Don't Believe The Hype-Current Government Foreclosure Prevention Programs Will NOT Help Most Homeowners In Default
The US government has tried to remedy this crisis by passing bills to help curve the foreclosure crisis across the nation. They even commenced allocating finances to buy and fix up foreclosed dwellings, urging lenders to offer loan modifications and assuring the loans in case they go back into default. Yet, the bills that have been passed have only aided very few homeowners in default or in foreclosure. And the large bulk of the loan modifications that were processed really did not offer much support since most of the loan modifications that were processed did not reduce the monthly mortgage payments enough to make them affordable and in many cases increased the monthly mortgage payment thus making it even less affordable.
The truth is because there are so many people trying to work out a loan modification lenders just do not have the workforce to process all of the requests. Another reason is that many lenders have their hands tied because they have to answer to their investors and many investors are not willing to take a cut on their returns to grant a loan modification. Consider also that to date only a scrimpy 1% of the 4 million dwellings targeted under the government foreclosure prevention plan have the loan permanently modified.
Add the fact that these political programs require that the homeowners in default still have a job. However, the unemployment rate is currently at 17.2% and continues to advance. As a result, less the half of the 3.2 million homeowners who are in default are actually eligible for any relief from the government-sponsored programs.
So reality is that while it may be perceived that there are many choices, there are really not a whole lot of options to effectively prevent foreclosures. There are just too many foreclosures out there for all of them to be handled effectively and the program that are in place do not address the recent economic downturn.
The only way to ensure that homeowners can protect themselves from foreclosure especially wrongful foreclosure is to become more proactive and educated about the foreclosure process. Then use that knowledge to their advantage. In fact, it is essential for any homeowners in default to become more proactive to stop foreclosure themselves.
The Dirty Truth About The Mortgage Business
You see, back before when the real estate market was booming and record numbers of mortgages were processed as a result of the booming economy there were also huge amounts of mortgage portfolios that were packaged and resold to what is known as the secondary market. This was common practice for mortgage loan companies and banks to do this so that they could free up money to do more loans. They were extremely greedy, very greedy.
Here is the thing; a vast majority of those loan portfolios were sold off without proper certification. Many of these portfolios were sold many times and sometimes even owned at the same time by different holders. Also, many mortgage lenders, banks and servicers are now out of business. Therefore many lenders do not have or can show proper documentation to prove true ownership of the mortgage note. So it is highly likely many foreclosures that are being conducted today are done so without proper due course. As a matter of fact, several major banks have faced and lost class action suits because they conducted their foreclosures in this manner.
The key to fighting foreclosure is learning how to identify unjust actions taken by the lenders, plan a foreclosure defense and stop foreclosure yourself. Sadly though, thousands upon thousands of lenders still conduct wrongful foreclosures.
How Is This Possible?
Quite simply many homeowners do not know that they have the right to contest their foreclosures and do not answer the foreclosure notice. As a result, their homes are foreclosed or I should say stolen from them. Think about it. If someone you don't know came to you and said hey, you own me $5,000 pay me now, wouldn't YOU want some type of proof that you owed him or her? I know I would. It is the same thing here when "ANY" bank or mortgage servicer representing the mortgage lender that issues a foreclosure notice. The bank is basically saying "Hey you owe me X amount of dollars so pay me now or I plan to foreclose and take your home." There is nothing in a foreclosure notice to prove that your lender has the right to foreclosure.
After all, there is no copy of the assignment of the note or anything else for that matter proving that they rightfully own the note to collect the debt in due course. The lender is so certain that you will accept the fact that you are in foreclosure and won't dispute their rights to foreclose on your home. After all if you hadn't made any payments in at least three month they really can come take the house, right? Wrong!
What many homeowners are failing to realize is that even though they may be are late on their mortgage payments whenever the lender issues a foreclosure notice does not mean they have the legal right to foreclose. But they will foreclose only if the homeowner does not contest the foreclosure reguardless if they have legal right to foreclosure or not. It is up to homeowners to take action straightaway once a foreclosure notice is issued.
In closing, if you are at risk of foreclosure or know someone who is do some investigating and find out if your lender actually does have the right to foreclosure. You just might find out that your lender is trying to pull a fast one on you.
If you would like to learn more on how you can protect yourself against illegitimate foreclosure get a copy of The Ransom Fight Foreclosure Quick Guide.
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