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Avoiding Foreclosure
There may be options available to help you save your home, if you act now.
by Pamela Cross, vice president, senior community development officer, Wachovia Corp.
August 29, 2008
A
ccording to RealtyTrac, the leading provider of foreclosure and real estate data in the
U.S., foreclosure properties rose 75 percent between 2006 and 2007 - and the rates continue to rise
in 2008. Every day we are bombarded with the latest doom and gloom statistics about foreclosures.
However, those impersonal facts and figures take on a whole new meaning for those individuals and
families who lie awake at night worried about losing the roof over their head.
If this describes you, there may be options available to help you save your home, if you act
now.
Face The Situation Head On
It is easy to
become overwhelmed when money gets tight. But, if you are receiving calls from your bank or
mortgage company, don’t ignore them. Burying your head in the sand will not solve the problem.
Be Proactive
If you are having problems paying your mortgage or think you will have problems, contact
your lender—the earlier the better, as more and better options will be available to you. Your
lender should have people who are trained to handle these calls and may provide a special “800”
number.
Your lender will work with you—whether or not you have already missed payments—but if you
already have missed payments, there are generally three options for making you current on your
mortgage. These options are:
a. To increase your monthly payments over time by an agreed upon amount to
make up the difference in missed payments
b. To simply add the missed payments onto the end of the mortgage term
c. To rewrite the terms of the loan
Ask For Help
Local consumer counseling services are ready and willing to work with you to stabilize your
financial situation and either save your home or help you move into a more affordable home.
To help combat the rise in foreclosures in metro Atlanta, the Consumer Credit Counseling
Service of Greater Atlanta, the Fannie Mae Foundation, the Homeownership Preservation Foundation,
NeighborWorks America, and the United Way have joined together to provide foreclosure counseling
for Georgia homeowners. Simply dial toll-free 1-888-995-HOPE to be connected to a trained counselor
who will provide free, confidential advice. Homeowners who want or need in-person counseling
will be referred to organizations throughout the metro area.
If It’s “Too Good To Be True,” Beware
While there are many reputable agencies offering consumers assistance, there are also
unscrupulous scammers looking to take advantage of foreclosure fear and use it to their advantage.
Here are some red flags to look out for:
a. A “specialist” asks for advance payment to help you save your home.
b. You are asked to sign over your mortgage to someone else with the
promise that you can rent your home from a third party and eventually buy it back.
c. A person or agency offers to reduce your payments and serve as a “
middleman” between you and your lender.
If you think you have been a victim of foreclosure fraud, contact the Federal Trade
Commission, the Georgia Attorney General, or the Better Business Bureau.
The truth is, most foreclosures happen because of some major event, such as the loss of a
job, a severe medical situation or divorce. Each foreclosure situation is different and the best
solution for you may not be the best solution for someone else. Remember that foreclosure does not
mean that you absolutely will lose your home. Your lender does not want your home any more
than you want to lose it. By working together early on you can greatly increase your chances of
keeping your property.
