Cape May County Foreclosures Rise

by Nan Woodward

Are you aware that there is help out there for anyone experiencing foreclosure threats? And that it is FREE?

You can find financial assistance and guidance all over the state of New Jersey.

Foreclosure filings in Cape May County increased 324% from June to July, 2009. You must look for this help before the bank actually foreclosures. Don't wait.

Check out NJHMFA Mortgage Assistance Pilot Program and Mortgage Stabilization Program.

The New Jersey Judiciary Foreclosure Mediation Program has conseling and mediation for homeowners in need of help. You can reach them at the following number:

1-888-989-5277

Don't wait until it is too late to look for help. You know you are experiencing a problem making payments on your mortgage loan. Lenders actually don't want to foreclosure on your home. There are too many homes in the market now. They want you to make payments so they can collect interest on the loan.

Take this advise and call now.

Nan Woodward
http://nanwood.com

What do I do when I'm falling behind on Mortgage Payments and selling isn't feasible?

by nancy woodward

There are so many homeowners in this position today. They find themselves owing more to their lender(s) than the current market value of their home. As Real Estate values decline this occurence is becoming more common. Many families with multiple mortgages are realizing they can't sell their home and break even today.

I believe all lenders really don't want your home. They want you to continue making interest payments for the next thirty years. The lender makes money by receiving your continuing payments - the interest portion of your payment is the lenders income stream.

Lenders actually rework 90% of loans for their good customers who are experiencing problems meeting their obligation. They have more than one option which will help you stay in your home.

1. Partial Reinstatement - you agree to continue making your payment as usual and makeup the balance overdue in the next year.

2. Short-term Forebearance - You skip a number of payments or reduce your payment for a few months - then make up the difference in a set period of time.

3. Long-term Forebearance - Payments discontinue for a longer period of time (usually more than twelve months) then you begin to repay all.

4. Loan modification - Your payment is permantely changed. This could be a rate change, time extension or a combination so you can continue making your payments.

5. Other terms - the bank has the flexiblity to combine and or modify whatever it takes to reduce your payment to an acceptable level.

Call your lender when you realize you will be having a problem meeting your obligations. You need to ask for the correct department - don't speak with collections. Their job is to collect money, not modify loan terms.

Most lenders have experienced these problems over and over in the past year. They will be willing to talk to you.

Foreclosures in Atlantic County

by Nancy Woodward

Foreclosures in the south jersey area in the third quarter declined seven percent. Unfortunately forclosures in Cape May County rose thirteen percent during the same period.

These numbers are still below the state average of sixteen percent and the national average of thirty percent.

Realty Trac Inc. calculated the numbers. They are a tracking firm based in Irvine, California with a major presence on the internet.

I have used the site to find foreclosures in the New Jersey area.

Contacting Homeowners

Contacting Homeowners in Pre-Foreclosure Situations
By Nancy Woodward

I try to put myself in their place. Homeowners who have received legal documents leading to Foreclosure are in a very stressful situation. They are grasping at anything they can to make this situation go away. Some homeowners remain in denial for a long time.

Situations beyond their control can cause a financial drain resulting in default such as:

1. Medical problems
2. Divorce
3. Death
4. Loss of a job
5. Natural disasters


I have considered this issue many times. I have never been in this position and have trouble imaging how the homeowner feels.

I created a list of questions to review before contacting a homeowner for the first time:

1. How would I feel if I had defaulted on my mortgage loan?
2. How would I feel if I were receiving a ton of mail offering to abate my foreclosure?
3. Can I trust the people sending this mail to me to help me and treat me respectfully?
4. How will my family and friends perceive this situation I am in?
5. Will I ever be able to buy Real Estate again?
6. Will I be forced to file bankruptcy?
7. Can I sell this house myself?

I find if I spend a moment reviewing my list before I knock on the homeowners door, I have more compassion and listen well before I speak. I bring homeowners my Foreclosure Assistance Guide. I make suggestion they can pursue on their own.

I explain the reasons they should stop the foreclosure and some of the misconceptions related to this process. I provide a list of questions they can review with their mortgage broker, attorney and realtor, and the foreclosure agent in the Loss Mitigation Department.

What should I do to Avoid Real Estate Foreclosure?

What should I do to Avoid Real Estate Foreclosure?
By Nancy Woodward

If you are in this position, you have certainly experienced financial difficulties. You may or may not be behind in your mortgage payments. When you realize you are having problems, you should make a list of your creditors and begin contacting them.

The worst thing you can do is to ignore the situation and assume it will take care of itself. Lenders and creditors do not want to take legal action. They are willing to work with sincere people who are experiencing temporary problems.

So, you should:

1. Write a complete list of your creditors
2. Find documentation of your loans to obtain the following information -
a. Your loan number
b. Payment amount
c. Due date
3. Calculate your current living expenses.
4. Determine if you need to decrease expenses and/or payments of liabilities and for who long.
5. Call your lenders

While this sounds simple in theory, you may experience problems reaching persons in authority who can help you. You need to find the right department and person who are handling your account.

Create a spread sheet. Track all calls you make and the conversations you have with lenders. You should know the name of the person you are talking to and what their position is in the company. You need to follow up yourself.

Ask your mortgage lender for help and information. Perhaps they will allow you to refinance your mortgage, take out an equity loan, or pursue forbearance. Once you make it clear that you are willing to work with them, you will stand a better chance of avoiding foreclosure.

Foreclosures are a Reality of Life Today

Foreclosure is now a sad reality of life for many homeowners
By Nancy Woodward

Foreclosures in general have been on the rise for over a year. At this time, sub prime borrowers are scrambling to refinance their loans. They payments have now skyrocketed and homeowners realize they must find a way to reduce the loan payment now. Tighter lending standards put into place by Federal Regulators in recent months are making it more difficult to refinance subprime loans.

According to Brett Warren, president of Buyer’s Home Mortgage Inc., as recently as six months ago, most requests to refinance were from homeowners wanting to reduce their interest rates or take equity from their property. Today, most requests are coming from subprime borrowers trying to reduce payments.

Many of these homeowners obtained loans with teaser rates and high fees. Some now find themselves in a position where the equity in their home is negative. As the number of resetting loans increase, so will the foreclosure rate.

Philadelphia and New Jersey have a majority of mortgages in the prime rate area. These seem to have a lower foreclosure rate according to Mortgage Bankers Association. The highest increases in foreclosures last month were in California and Florida, followed by Ohio and Michigan. The firing of employees in the automotive industry had a direct impact on this.

While this number will continue to increase, homeowners should seek help before they reach the foreclosure point. There are ways to solve the problem.

Foreclosures in New Jersey

Sub-prime Loans and Foreclosures in New Jersey
By Nancy Woodward

The mortgage market has seen a large increase in the sub-prime market arena. This type of loan is fairly new. These loans provide the opportunity for those with low credit scores to become homeowners. Unfortunately this type of loan has also created an opportunity for purchasers to obtain loans without truly understanding the ramifications and, in some cases, the cost they will be paying in the future.

Lending practices in the sub-prime market contributed to the increasing number of foreclosures that is shaking the Real Estate Market in New Jersey. A new version of loan – the exploding ARM – is responsible for the increase.

These loans are hybrids of the ARMs we are familiar with. They start with a low rate, and run for thirty years. The rate resets after two or three years. The new rate which is significantly higher creates a much higher mortgage payment. In 2005, initial rates were set at seven percent increasing two ten percent after two years. This rate can increase in six months to a year from now.

In 2006 Fitch Ratings reported that 2/28 sub-prime ARMs carried an average ‘payment shock of twenty-nine percent over the initial rate even if the short-term interest rate remained the same. For those given loans with very low rates based on the income they reported when obtaining the initial loan, this increased payment can be a disaster.

The current state of the housing market is softening. Interest rates are increasing and home sales prices are declining. This situation increases the possibility of financial problems. As the sub-prime market loan’s reset at higher rates, this will result in more delinquencies. It is possible for homeowners to find they cannot refinance their loan. The declining prices result in declining equity and perhaps larger loans than the remaining equity in the property.

As usual, I suggest you do your due diligence before signing on the dotted line.