Foreclosure News

28 Aug HAMP Program Failing Miserably in 2010

Approximately 16 months ago, President Obama made a pledge to help 7 to 9 million families avoid foreclosure. Well, the most recent statistics for May 2010 have been released and the statistics confirm that the HAMP program is failing miserably. Since that time, more people have been kicked out of the program (over 435,000 families) than have received permanent relief (approximately 339,000 families). More specifically, it appears that in the last month, 5 times as many families were kicked out of the program than were granted new relief. I'm not sure how this happens in a period of economic recovery. Hmmm.
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07 Feb Chip Parker discusses walking away from your home on First Coast Connect

As the managing partner of the largest foreclosure defense firm in Northeast Florida and the only practicing attorney on Jacksonville’s Foreclosure Task Force, members of the media often contact me for my opinion foreclosure issues. Last week, I appeared on local National Public Radio (NPR) affiliate, WJCT, to discuss “homeowner walk-away” with the host of First Coast Connect, Melissa Ross. Joining me were two Jacksonville Area Legal Aid Lawyers, Allison Albert and James Millard. Recently, There has been much talk about homeowners making the strategic decision to walk away from houses that are now way “underwater,” meaning that the home value is far lower than the principal balance owed. This is especially relevant in the hardest hit foreclosure states – Florida, California, Arizona and Nevada. I have consistently advised my clients that the best way to deal with their foreclosure is as a purely dispassionate business decision, realizing how difficult it is to look at a home with cold eyes and think of it only as an investment. Many homes represent more than just a place to park the car - homes symbolize marriage, childbirth, coming of age, retirement and death.
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31 Dec New Year’s Resolution–Don’t Be Financially Illiterate

Anyone who works with consumers these days--attorneys, housing counselors, lenders, and brokers and, for that matter, anyone who reads media reports on the mortgage crisis--has no doubt reacted to some tale of financial woe like this: "How could anyone be that dumb!" We've all heard some version of the exploding ARM, the payments which are higher than the borrower's monthly income, the "liar's loans" with no proof of income (or anything else) required. Whether we are reacting to the lender's nonsensical approval of the loan, or the borrower's outrageously optimistic assumptions, at some point we come across a scenario that just boggles the mind. Of course, in many of those cases, there is an explanation, if you know the background. Many transactions which appear ridiculous in hindsight made perfect sense, or at least some sense, at the time they were transacted. But there may be a bigger issue at work here: Americans' abysmal financial literacy.
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