Marino on Money: August 11
Question: I am facing foreclosure on my home. What are my options?
Unfortunately, foreclosure is becoming more common. President Obama asked for a suspension of foreclosures between November 2008 and April 2009. That period has ended, and foreclosures are on the rise once again. According to Realtytrac’s midyear 2009 US Foreclosure Market Report, there has been a 15% increase in foreclosures during the first six months of 2009 compared to the first six months of 2008. In real numbers, that means 1.19% of all housing units are in foreclosure, or one out every 84.
According to the report, unemployment-related foreclosures account for most of the increase. Even with all of the government intervention and loan modifications from lenders, foreclosures still continue to rise. Many borrowers find themselves owing more on their home than it is worth. What should a borrower do if he or she is in this position?
Here are the first two steps. Stay calm, and seek qualified help. I have listened to many people who are facing foreclosure. There is no way I can fully appreciate the pressure and stress foreclosure can create. However, I do understand how emotions can affect the decision making process. Working with a qualified professional who is not emotionally involved in the foreclosure process can help.
What are your options? There are a few. I will discuss each one over the next two days.
If you have a financial question for Ross, you can use the Marino on Money page.
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