Helpful Mortgage And Real Estate Advice

Annual Foreclosure Rate Increase After Nearly Four Years

By on September 15, 2014 in Market Updates, Uncategorized

An increase was seen in the annual foreclosure trend in Realtytrac’s most recent foreclosure rate report for the month of August, just a month ago. A 7 percent rate increase, after nearly four years ago since the last spike in annual foreclosure rate. Mortgage Home Base expands on this national foreclosure increase.

Realtytrac’s foreclosure report of collected data analysis includes properties in the U.S. that are currently in some stage of foreclosure, not excluding those that are in default, bank owned or currently in auction.

The annual foreclosure rate is reported to have increased by 7% in comparison with a month ago in July. It is however, below 9% from a year ago. This translates to 1 in every 1,126 housing units in the U.S.

If you are still good on your monthly payment and show no delinquency on your mortgage, you may be able to look into refinance as an option to lower your monthly mortgage.

As of August 2014, there were 51,192 properties currently scheduled for foreclosure. This is a 1% increase from an annual foreclosure report since 2010. To prevent anymore increase activity in our national foreclosure rate, underwater homeowners must take the initiative to address their mortgage issues immediately.

Among the nation’s increasing foreclosure rate trend, Colorado had an increase of more than 160% of scheduled foreclosure auctions. Connecticut and New York had more than 81% increase, to top off that number is Oregon State with more than 117% .

Annual Foreclosure Rate Increase

Tips For Foreclosure Prevention

Before filing for a foreclosure there are several things that homeowners should take into consideration. The decision of foreclosing on a property is usually not a homeowner’s decision to make, but the choice to prevent foreclosure is one that a homeowner can take to avoid one.

The following five tips are:

  1. Accepting your mortgage problems
  2. Review your mortgage loan document
  3. Research your options
  4. Stick with your execution plan
  5. Caution yourself of foreclosure scams
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The first step of the five tips is extremely important if you are trying to fix this mortgage matter of yours. By learning to accept the issues, you will be able to address them in a more effective manner. Make sure to contact a professional lender in regards to any payment that you may not be able to afford that month and see if they can provide you other options of handling that particular situation with some sort of payment solution. The sooner you call, the better chances you would have of receiving the help you need. Lenders would rather have you let them in on your problems rather than have you stress and wait till you are out of options.

Second step is to sit down and review your mortgage loan document and put into plans what your financial circumstances may require. Creating a budget can be very helpful, this would be something that your lender may want to know in regards to helping you get out of your current mortgage scenario. Start your budget plan by putting out on the table what your total monthly expenses consist of, whether it be grocery, utilities, or a babysitting expense, this will give your lender a better understanding of your financial obligations. As soon as you have put together your budget plan, it is time to seek a mortgage counselor to go over it to see how you can negotiate a payment solution with your lender.

If you need help finding a new lender for a refinance solution, Mortgage Home Base can help you locate one within your service area. You do not need to stick with the same lender if you choose to refinance on your current loan.

After you have done your homework and know what your options are, you can now decide what it is that you would like to do. In some cases, if it is not too late, some lenders may even offer a loan modification (long term) to switch out your loan terms for one that would accommodate you better. Loan modifications is a chance to re-write your loan terms making your monthly mortgage payments more affordable for you. If you are behind on your payment, your lender may be able to work out a payment arrangement with you temporarily (short term) until you are able to get caught up with your mortgage payments.

If your lender decides to work with you on a short term plan or a long term one, it cannot be stressed enough that you stick with this method. Not doing so may result in a negative affect on your credit score. Paying your monthly mortgage payments on time is the best thing you can do to prevent loan default that often times can lead to an unwanted foreclosure. If it is within your power to cut expenses such as, eating out or extra unnecessary necessities, it is wise to put your mortgage ahead of these things.

If you are a current FHA borrower who is seeking to find financial relief by removing your expensive Mortgage Insurance Premium, there are lenders available to help you do just that.

Caution yourself of foreclosure scams, there is no worst time to be taken advantage of more than a time of need. There are several con artists out there that will claim to be a mortgage counselor and claim that they can help you get out of your situation, but in the end will rob you blind. For more information on foreclosure resources for consumers, you can visit HUD’s website. Also, if the plan that you have chosen does not work out for you, please always let your lender or mortgage counselor know ahead of time to keep you from falling behind on your mortgage.

What Happens After These Steps?

If you have already attempted these five tips and keeping your home is not an option, lenders may allow you to sell your home to help pay the difference of your mortgage loan. Selling your property may not be something that you would like to resort to, but if it is your last resort you may want to take it to relieve the financial burden. However, if you are able to find a qualified buyer who is willing to take over your mortgage for you (Assumption) this is something that you may want to ask your lender to help you in pursuing.

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About the Author

About the Author: Jessica Lucas is the managing editor for Mortgage Home Base, a top real estate finance blog dedicated to helping borrowers and home buyers understand the home loan process. Follow Jessica on Google +, and share your comments here. .
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