Help for Distressed Homeowners

I’ve been listening to the news media and reading many articles lately, and I honestly believe we have many reasons to be optimistic about housing. Foreclosure filings are down and the inventory of homes on the market has been declining over the past few months. Mortgage lenders are reporting historically low interest rates plus home prices are beginning to stabilize. It won’t be an overnight recovery, but there is progress - however fragile it may seem.

Legislators need to focus on helping families who are struggling and do whatever they can to keep properties out of the foreclosure market. Easier financing through the Home Affordable Refinance Program (HARP) is an important indicator that we are going in the right direction. Many homeowners who have been forced to cut back due to job loss, medical issues, or decreased income because of company cutbacks can save hundreds of dollars a month on their mortgage payments due to the refinancing ability offered by this program. This initiative plus lower interest rates can make their home affordable and decrease the liklihood of a short sale or foreclosure. However, a major obstacle is educating distressed homeowners of this program and its benefits.

Housing affordability issues are particularly important in today’s marketplace. Legislators must continue to help through programs such as HARP or they risk hurting the economy even further depending upon the decisions they make on housing. Today it is imperative that our representatives in Washington DC hear the message that housing needs focused attention to help our struggling economy begin to recover. Please contact your representatives and let them know the American Dream of homeownership does matter.

As a Realtor, I’ve seen clients and friends lose their homes to foreclosure and seen firsthand the devastation this causes to morale and self-worth. In my opinion if a homeowner has the reasonable ability to pay their mortgage, there is no more important goal than keeping them and their family in their homes. In those cases where homeowners do not have the reasonable ability to pay their mortgage because of unemployment, illness or other personal challenges, a short sale should be the first consideration. Streamlining of the short sale process by major lenders is allowing this option to be more fully utilized. As in the HARP program, one challenge to short sales is educating homeowners in distress about this option. Many lenders are now being proactive in contacting homeowners who are at risk of default and discussing this alternative to foreclosure. Many realtors are taking continuing education classes to help them understand and become more proficient in the short sale process so they can effectively guide their clients through it. It can be a lengthy process with obstacles to overcome, but it is a viable option to simply walking away and allowing the home to go into foreclosure.

If you are struggling with your mortgage payments or know someone who is, contact a reputable Realtor or loan officer for help. You don’t have to face this fight alone and there are viable options to foreclosure. We are here to help.