Mar 20, 2008 12:08 am US/Eastern
Information To Help Avoid Foreclosure
MIAMI (CBS4) ―
U.S. home foreclosure filings jumped 60 percent and bank seizures more than doubled in February as rates on adjustable mortgages rose and property owners were unable to sell or refinance amid falling prices. George Joseph of the Dade County Federal Credit Union tells CBS4 Consumer Reporter Al Sunshine that despite the government's promotion of quick foreclosure fixes, he's not aware of any new loan programs for homeowners already months behind in their payments.
Joseph said, "I'm not seeing them. I would probably say yes, it's a lot of talk."
Some critics say if the government can find hundreds of billions of dollars to bail out a Wall Street firm such as Bear Stearns, why not help find funds for struggling families.
"I just don't see where bailing out an occasional financial firm is the right way of fixing the problem to stem the coming flood of massive amounts of foreclosures," said John Taylor of the National Community Reinvestment Coalition.
Experts suggest if money is needed to stay in one's home then some considerations would be cutting back on 401-k contributions, or refinance a mortgage to take advantage of lower interest rates, or even borrowing against a life insurance policy if emergency cash is needed, as well as cutting back on monthly expenses by at least ten percent.
But reverse mortgages continue to be popular in these times of rising foreclosures.
"Florida is one of the highest closers of reverse mortgages in the country," said Armando Fana, who runs the Department of Housing and Urban Development (HUD) in South Florida.
It's a loan that gives you back the money you've paid into your house (your home equity).
"It's good for someone who's got a lot of equity in their home, whose made payments over a certain number of years," said Fana.
You must be over 62-year-old and you must undergo credit counseling before you sign.
In the real estate market, more than 223,000 properties were in some stage of default, or 1 in every 557 U.S. households, according to California-based RealtyTrac Inc., a seller of foreclosure data.
Economists are forecasting the U.S. housing slump could push the economy into a recession this years, and there are no signs housing will recover in 2008.
Nevada led the nation with the highest foreclosure rate in February. Filings rose 68 percent last month to 6,167 from the year-earlier period. One in every 165 households there was in default or foreclosure.
California had the second-highest rate with one in every 242 households. Florida was third with one in every 254.
The highest total number of foreclosure actions was in California, followed by Florida and Texas, RealtyTrac said. California reported a total of 53,629 last month, up 131 percent from February 2007. Florida had a total of 32,447, up 69 percent from the year earlier. Texas filings fell 1 percent to 12,261.
The Cape-Coral/Fort Myers, Florida, metropolitan area recorded the highest foreclosure rate of 229 metropolitican areas tracked in the report. Its figure of one per 84 households was almost seven times the national average.
The U.S. Department of Housing and Urban Development offers a wealth of information for homeowners who wish to avoid foreclosure.
Freddie Mac and the Bush Administration also provide useful information to homeowners who feel like they may be in over their financial heads.
The attorney general's office says if you think you've been a victim of mortgage fraud, there are several places you can go for help.
Contact the Florida Attorney General's Office 1-866-966-7226 or their website myfloridalegal.com or Office of Financial Regulation www.flofr.com
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