Oct 29 2008
The Storm Is Just Getting Started
Foreclosures have soared 71 percent in the third quarter, to an average of more than 8,500 homes a day. More than three million homes are now expected to be in foreclosure by year’s end, a million more than even the most dire predictions. On top of that, lenders are taking possession of delinquent properties at twice the normal rate which means more than one million homes are likely to be repossessed by the end of the year.
Why is this happening—especially when the last thing most lenders want to do is repossess a house? For one thing, banks are overwhelmed with the sheer number of troubled mortgages. That’s made it more difficult for them to work out loan modifications. Many mortgages also have second liens attached to them, requiring negotiations with third parties which can take months.
The main problem is that so many mortgages have been grouped together into securities and sold off to investors worldwide. These mortgage-backed securities typically carry terms that severely limit the homeowner’s ability to renegotiate a mortgage. So the banks that typically service the mortgage risk being sued if they deviate from these terms.
The only way to protect yourself from foreclosure is to use the legal system to your benefit. You cannot rely on anyone else to come to your rescue. This includes the Federal government, defense attorneys, and especially the lender. For more information about how you can protect yourself from foreclosure, visit www.ForeclosureDefenseSecrets.com.
