Living After Foreclosure

The US Department of Housing and Urban Development has some good advice for people that are in danger of losing their home through foreclosure. Here are the last three tips from that list, with some discussion.

• Use your assets. “Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.” This can be good advice if the setback that’s gotten the homeowner into hot water is temporary — that is, there’s a light at the end of the tunnel. People will go to great lengths to keep their homes. The flip side of this is that the lenders, unfortunately perhaps, are more willing to deal with you if you’re upside-down on your mortgage because they will take a really big loss if they end up foreclosing. If you have equity, staying on the defensive and paying however you can is the best way to go because you stand to lose more, because the lender is probably a bit more likely to foreclose if they have a cushion.
• Avoid foreclosure prevention companies. “You don’t need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead.” Just like companies are beginning to see the market in helping people to walk away from their homes, companies are also well aware of the market to take some of the scare factor away from dealing with a lender and charging for things that could be done for free.
• Watch out for foreclosure recovery scams! “If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney.” If it sounds too good to be true, well then it probably is! Facing foreclosure is disheartening and likely makes people feel more vulnerable and more willing to consider offers that would be disadvantageous under more normal circumstances.

My comments on the other tips are here and here.

• Why get foreclosed on when you can "walk away?" If you look at the demeanor on the faces of the people over at YouWalkAway.com, you might think that getting foreclosed on is downright enjoyable.  A walk through the park with your spouse and child, as it were. It even seems a bit empowering.  You don't get foreclosed on; you......
• Steps to take if you’re facing foreclosure, Part 3 Here's the last installment of Liz Pulliam Weston's tips for dealing with the possibility of foreclosure: Offer a deed in lieu of foreclosure. This is an option if the shortfall between your house's value and what's owed on it isn't too much.  The lender can say, "Yeah, I'll take the......
• Albany's "foreclosure intervention" bill confuses me There's legislation ongoing in Albany, NY, that will allow judges to postpone foreclosure proceeding and modify interest rates on mortgage notes of subprime borrowers. The Wall Street Journal contends in an editorial that this is "pols ... taking a whack at bank balance sheets" by giving judges the authority to......
• The first post on the site Welcome to the first post on Living After Foreclosure! Here are some of the things I plan to talk about on this site: The foreclosure process -- how one gets to that point, what's involved, how it can be avoided The social effects of foreclosure How widespread foreclosure affects society......

• Choosing Beginning Woodworking Projects When you are thinking about beginning woodworking projects as part of a new woodworking hobby, there are a variety of different ways that you can get the help, the information and the resources that you need. Many people are originally introduced to the art of beginning woodworking in school, and......
• Tips For Choosing A Debt Counselor If a person is interested in getting out of debt, the person will need a debt counselor to help them find the right debt relief program. Choosing a debt counselor can be difficult because there are a large number of counselors that have opened up shop all over the nation. ......
• Obama's $275 Billion Housing Crisis Plan President Obama announced a $275 billion plan that would help homeowners, as many as 9 million, refinance or re-negotiate their home loans. Said President Obama "This plan will not save every home, but it will give millions of families resigned to financial ruin a chance to rebuild...It will prevent......
• Book Review & Giveaway: "How To Be An Everyday Philanthropist". This giveaway has ended. A few months ago I was sent a copy of the book How to Be an Everyday Philanthropist: 330 Ways to Make a Difference in Your Home, Community, and World - at No Cost! by Nicole Bouchard Boles, but with the move to Denver and my......