Federal funds to fight foreclosure
U.S. mayors are working to resolve the housing crisis by using federal money. Rampant foreclosures are especially hurting cities by choking off property tax revenues that fund city services. Jill Barshay reports.
Sign outside of a house under foreclosure (Justin Sullivan/Getty Images)
More on Housing - Real Estate, Fed. Budget/Govt. Spending
TEXT OF STORY
Renita Jablonski: The nations' mayors are in Miami for their annual meeting. Today, mayors are expected to pass resolutions calling for federal money to help deal with the foreclosure crisis. Big cities want the aid to go beyond low-income families. Jill Barshay has more.
Jill Barshay: Foreclosures are strangling some cities. They're choking off property tax revenues just when city services are needed the most.
Frank Ortis is mayor of Pembroke Pines, a city near Miami. He says people getting kicked out of their homes are adding to urban blight.
Frank Ortis: Some even poured concrete down toilets, put holes in walls. And then you have the over-growing of the grass. And you have pools, in Florida especially, turn green and become mosquito-infested. Those are all problems for us as mayors to deal with.
Everyone expects more foreclosures to come. Mayors want federal funds to keep homeowners in their houses.
But big city mayors are worried federal aid could be restricted to low-income households. Expensive cities like New York and Boston argue they need help too.
I'm Jill Barshay for Marketplace.
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From Miami, FL, 10/29/2008
Most people do not realize that they can stop foreclosure even if they stopped paying their mortgage. Many recent cases have been filed improperly and an experienced attorney can assist with the identification and filing of substantive and procedural defenses with the court and vigorously defend your case. Due to the lender's actions, omissions or other facts surrounding your case, you may be able to stop making mortgage payments and stay in your home while your attorney vigorously defends your property. This does not necessarily mean that you will not have to pay the loan back or completely Stop Foreclosure. It is possible to completely Stop Foreclosure if the bank or lender is in violation of the Florida Unfair Lending Act or other predatory lending practices. If the lender has committed such a violation, the entire principal and interest balance may be waived and the mortgage may be voided. This may not be relevant in your case. But, at the very least, a successful defense can do is buy you precious time to:
* Stay in your home
* Negotiate a work-out with the bank
* Sell your home for a fair price
* Refinance your home at a fair rate
* Continue to collect rent on the property
* Apply for a Court Ordered repayment plan
* File a Chapter 13 or 7 Bankruptcy
When home owners are faced with the reality of facing a potential foreclosure, many experience a state of paralysis. They don't know what to do. Selling the home may not be an option since the equity appears to have vanished. To fight foreclosure or not? That is the question. Clouding the answer is perhaps the biggest misconception, "Hiring an attorney is not a cost-effective option." If I can't afford to pay my mortgage, then how in the world can I afford to hire a competent attorney? And why should I, if I am upside down in my home? First of all, EVERYONE can and should hire an attorney to represent them in their foreclosure case. There are many competent attorneys who specialize in this area. Due to the growing number of these cases, many attorneys have become "experts" in this area. Due to the fact that most of these cases are very similar, many excellent attorneys have experienced staff and can offer extremely affordable payment arrangements. Most people don't know that once the foreclosure proceeding has started, the bank will not accept any future mortgage payments - doing so may adversely affect their ability to foreclose on your property. Furthermore, the bank pays any delinquent real estate taxes and the insurance on the property. In summation, once the bank files a foreclosure lawsuit, most of the homeowner's expenses are being paid by the bank (mortgage, taxes and insurance). However, as the legal owner of the house with full possession, you have all the rights associated with same including residing in your home, collecting rents on the property, etc. Imagine the "EQUITY" you can save / build, if you fight the foreclosure case for a year or more. The cost of qualified legal representation is a drop in the bucket compared to your typical home ownership overhead. Time is money and the real estate and financial markets are likely to turn around. The hiring of the right attorney will save you thousands of actual dollars, in addition to thousands in time value of money. Its really a no-brainer.
Respectfully,
Frederick A Neustein
http://StopForeclosureLawyer.com
From Wellington, FL, 08/09/2008
Hello,
We are in foreclosure with our sale date coming up on August 25th.
We have 3 small children including a 6 year old little girl with Autism. We have no money to move since I have been unable to derive income since my mortgage business failed towards the end of 2006. My income was 6 figures for several years however is now -0-.
My husband works however his $2,440 per month job cannot cover our minimum mortgage payment of $3,100. We owe $660,000+ on our home which appraised for $785,000 in July of 2006 when we refinanced. Due to other homes in the area dropping their prices and/or resorting to foreclosure, I do not know what our value is. The last home similiar to ours with a mother in law home sold for $600,000. My mother in law has moved out due to the stress and anticipation of being evicted. Our goal was to take care of her for the rest of her life and she invested all of her money (proceeds of sale of a prior home) to build the in law house.
Is there any help for us?
In addition to the foreclosure we are also battling an IRS error made by our accountant so the stimulus check and refund for 2007 was rejected.
Please let me know if we are eligible for any government funding.
I have called our lien holder, Wachovia and was told they cannot work for us due to my unemployment and the inability to repay the loan.
Sincerely,
Truly Sieli
561-753-8393
From Denver, CO, 06/23/2008
Just because a house is foreclosed does not mean the house is not owned. The bank is responsible to keep the house up to the standards of the HOA or zoning. Or is this wishful thinking?
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