Bailout help on the way

This picture was taking at the 2008 Frederick County Relay for Life. Just like Cancer patients, homeowners need to have hope too

Many homeowners are under water and it is encouraging to see progress being made on the Bailout plan.  AIG is really pissing upsetting people off with their latest antics.  I just don’t get how CEOs justify this while the business is under water.  How do you plan these parties?  “John, THE check came in…Great, off to Arizona, see you in a week!” Last time I received a windfall it wasn’t spent on a party, it paid the bills.

Back to the consumer side of things; it looks like money from the bailouts will help with loan modifications.  I hope that the loans are modified to current market values.  This will keep home owners in their home.  They have to stop the bleeding at the ground level so that it can filter back into the local economy.  You hear too many stories where people are just getting by and only purchasing the bare minimums.

There are places that you can start looking for help before losing your home to foreclosure.

• FHA Hope Program
• FHA Hope Program – application
• HUD Fact sheet on FHA Loans
• Frederick Community Action Agency
• 1-877-462-7555 or www.mdhope.org
• Last resort – Short Sale

Talk to one of the many councilors available to you to discuss your options.  Frederick and the State of Maryland are available to help you.

Have a great day.

“Suffering in Silence” – Foreclosure outreach

I attended the Frederick Foreclosure Forum last night. The turn out was not as expected. There were only a small handful of consumers looking for answers and guidance. The other 85% were local professionals, city and county personal looking for more resource to help those in need. I kind of expected a low turn out for the consumer side. As part of Thomas Perez’s, the Department of Labor, Licensing and Regulations Secretary, opening speech…This is a humiliating and an embarrassing problem…homeowners are suffering in silence. This problem occurred out of the absence of sufficient regulations in the real estate industry (lending portion.) He could not of said it more bluntly. I couldn’t imagine folks that really need this help, showing up amongst a crowd. I applaud the few that did.

There was a question about the appraisers being held accountable for not predicting this back in 2006. A gentleman from the Emerald Farm area, not in trouble now, but sees the potential when it is time for him to sale in the near future. He feels the appraiser falsely gave value to his home. He believes his home and others on his street are $100,000 less than back in 2006. I know that the Appraisal process is under scrutiny and will have new laws in effect come January 2009. Not sure about $100,000 but we have been experiencing about 1-1.5% depreciation in some neighborhoods. Emerald Farms price drops have been a result of the increase in short sales ranging in price $300-349,000. The home that sold for $349,000 was originally purchased for $360,000 in 2004. One home currently on the market for $300,000 sold back in 2006 for $450,000. A non Arms length transactions should not impact future appraisals but the do impact sellers pricing strategy.

Fernando Herboso, a local real estate agent, wanted to know what the state was doing to help the Hispanic community who are also falling victim to bad loans. He said down in the trenches they are afraid to speak out for fear of being deported and separated from their children. He also went on to explain these are hardworking families that are helping build a community and doing jobs that others will not. They have no place to turn. He spoke of a tragic situation about a woman beaten by her husband with black eyes that was also afraid to speak out. This problem is not only housing related but domestic too. He said they fear of speaking to the police in their community. Perez was appalled by the beaten and said people should not be afraid to speak out against crimes. He then went on speaking about the programs in general that the state offers.

A couple items I took away from this; The Emergency Foreclosure Bill and also the state has a team that investigates the mortgage fraud and mortgage scams. (yes, I did ask the question about the carpetbaggers) Thomas Perez just loves ripping out the signs of these scam-artist that scrape equity off of homes. They also dupe homeowners out of their homes by having them sign a quitclaim deed and “renting” the home back to them until they can get back on their feet. This never happens.

Numbers you need if you or someone you know is facing foreclosure.

1-877-462-7555 or www.mdhope.org

If you think you have been a victim of mortgage fraud or a mortgage foreclosure rescue scam…

1-888-784-0136

Locally Frederick County residents can get free counseling by contacting the Frederick Community Action Agency. You can talk to Joe Baldi or Brad Peterson. They will help you talk to your mortgage company and possibly negotiate a better situation for you. Frederick doesn’t want empty houses in the community either.

One last take away from this meeting was about the rights of tenants. Mary Beth Johnson of the county housing rental assistance, has been seeing a rise in landlords going into foreclosure and the tenants are left on the curb without notice. Scott Borison of Legg Law,LLC, states the tenants have rights and the lease supercedes the foreclosure. But this is only true if they stay in the property. Once they vacate, they have lost their right of possession. (Side note, Scott was instrumental in the drafting of the Emergency Foreclosure Bill for the state)

I am sorry to see the low consumer turn out, but glad I went. The resources that I took away from this forum will help me guide troubled homeowner in the right direction.

Back to my Foreclosure mantra….You have choices, but you have to do something…you can’t ignore it.

Please spread the word…homeowners need to act fast in order to help alleviate some of the problems.

Monday Foreclosure watch – The city has a plan- I think

They released a press release about tonight’s Community Foreclosure Forum. I am going to see what they have in store to help befuddled home owners. I really want to know if they have anything place to address the carpet baggers that have moved in to take advantage of the desperate homeowners.

The event starts at 6:00 PM at the Weinberg Center for the Arts and is open to the public. If you are in need of answers, I recommend that you go. The key thing is that you have to do something, ignoring the problem will not make it go away.

Here’s the whole press release…

CONTACT: Susan Harding, Public Information Officer, 301-600-1385

FOR IMMEDIATE RELEASE: Thursday, April 24, 2008

CITY TO HOST

COMMUNITY FORECLOSURE FORUM

_______________________________________________________________________

Frederick, MD — The City of Frederick is hosting a Community Foreclosure Forum for Frederick and Washington County homeowners. Foreclosure is not only a personal problem but a community problem as well. If you or someone you know is facing a possible foreclosure, this forum will offer individual and community strategies to help navigate the foreclosure process. The Community Foreclosure Forum will be held on Monday, May 5, 2008 from 6:00 – 8:00 PM at the Weinberg Center for the Arts located at 20 West Patrick Street. Admission is free and open to the public.

Attendees will have the opportunity to:

• Speak one-on-one with professional counselors who can help you work through the foreclosure process
• Learn what protections you have, and what you can do to help your community stem the tide of foreclosures.
• Find out what the federal, state and local government is doing to help.
• Meet with nonprofit representatives and find out what programs are locally available.

The City of Frederick Mayor William J. Holtzinger and Board of County Commissioners President Jan Gardner will provide opening remarks. Department of Labor, Licensing and Regulations Secretary Tom Perez will discuss the Governor’s new legislation regarding State solutions. Department of Housing and Community Development Secretary Ray Skinner will discuss the programs that are available. The Frederick Community Action Agency (FCAA) and the Washington County Community Action Council will have representatives on hand to discuss local programs available.

For additional information, please contact Rhonda Wardlaw, Department of Labor Licensing and Regulation Director, at 410.230.6071 or email rwardlaw@dllr.state.md.us.

Losing your home is not what you planned on doing, but there are solutions out there to minimize your pain.

If you need help, don’t hesitate to call. If I can’t help you, I will find you someone who can.

You can read more on my series on Foreclosures and Short sales.

Carpet Baggers feeding off those facing foreclosure

Good Morning America did a piece on companies out to “save” you from foreclosure. I hate to say it but I did hear someone mention this type of scheme is right here in Frederick. I don’t know the name of the company but just be aware they are here.

When someone says I can help you stay in your home and lower your payments but you have to sign over the deed to us or anything of this nature…Be very very cautious. It is not hard to get your information and feed into your worries. The foreclosure proceedings filed with the court is public information on the web and at the County Court house. These scum bags are very good at jilting you out of your home and creating more problems for your future and they don’t care…they are scum bags! If someone ever approaches you and feeds off your concerns, you need to step away and get a second opinion. Call me…I might not be able to help you but I will put you in touch with someone that can give you expert advice.

You have alternatives to Foreclosure, but YOU have to do something about it.

Your Choices…

• Do nothing
• Refi or payoff the loan (obvious, but hard to do or you wouldn’t be in this position)
• Reinstatement – Play catch up, make all past payments, pay off late fees and attorney cost
• Loan Modification – It never hurts to ask for a change to your loan
• Forbearance - A repayment plan or temporary pay arrangements based on financial condition
• Partial Claim – A loan from the lender to include back payment cost and fees
• Deed in lieu of Foreclosure – Give back to the bank, conditions apply
• Bankruptcy - There is a variety of options here call a Bankruptcy attorney for advice
• Sale – This usually results in a short sale where the bank has to approve sale because they are accepting less than what you owe on it.

The key is you need to do something…these are trying times and no one ever plans to be in this position. Seek help. I can help you facilitate the sale of your home, but believe me, I don’t want to put another home on the market if there are available options for you to keep it.

EDIT: Added the following.

Call your lender, should this happen to you. There is also a hotline number to call 1–800–4FRAUD8

Thanks Missy for the video and hotline.

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