FORECLOSURE INFORMATION – Resources and Prevention

 The current economic crisis has created serious challenges for the struggling unemployed, low-income communities and immigrant populations. Many service-based organizations that provide assistance to these groups are operating in an increasingly tight funding environment while demand for these services and support has increased. Moreover, the foreclosure crisis has disproportionately affected these groups and the funding of subprime loans has played a major role in fueling the recent economic crisis.  With this in mind, AWIB has partnered with Fannie Mae to compile a comprehensive list of resources that can help those struggling in the current economic climate address the issue of foreclosures and become more financially savvy.

 Between 2000 and 2006, Americans witnessed an unprecedented rise in home prices, and homeownership rates continued to expand as access to subprime loans made it much easier for low-income families to purchase a home.  In 2007, this all came to an end.  Prices of homes reached record lows last year and continue to decline today while foreclosure rates have drastically soared.  According to the U.S. Foreclosure Market Report released by RealtyTrac, in 2009, foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 2.8 million properties, a 21 percent increase from 2008 and a 120 percent increase from 2007.[1] 

 For the state of
New York, during the third quarter of 2009, the number of filings was 15, 242, a 11.6 percent increase from the previous quarter, and a 5.3 percent increase from the same period in 2008.[2]Furthermore, according to a study by the FurmanCenter for Real Estate & Urban Policy, bank-owned properties in New York City went from 290 in December of 2006 to 1,750 in September of 2009 with the severest hit areas including eastern Queens, central Brooklyn and north shore of Staten Island neighborhoods.  Another alarming finding of the report is that of the homes in New York City that received foreclosure notices in 2007, 54 percent were never sold and had not completed the process by September 2009.[3]

 The subprime mortgage-lending crisis created a ripple effect that has affected both large and small scale companies and all types of American homeowners alike.  One group that has been disproportionately affected is women.   According to Chris Hoyer, a Tampa, Fla., lawyer who has filed class-action lawsuits against subprime lenders, “During our interviews with hundreds of ex-mortgage company employees, they told us they had purposely targeted young single mothers by telling them subprime mortgages would help them provide homes for their children.  They would also target older women who already had homes and convince them that refinancing and getting cash payments would help them maintain financial security during their golden years."[4]

 Th
e financial uncertainty created by the subprime crisis affecting millions of Americans has created a need for nonprofit groups, corporations and government agencies to answer the question of what can be done if and when you find yourself going through the ordeal of a foreclosure. The subsequent sections provide additional information on this topic and a list of resources.

What is a Foreclosure?

Solutions to Prevent Foreclosures

Foreclosure Prevention Resources

Purchasing Foreclosed Properties

 

 

[1] http://www.cnbc.com/id/29655038?slide=1
[2]
“Foreclosure Activity Hits Record High in Third Quarter,” RealtyTrac Oct. 15, 2009, http://www.realtytrac.com/foreclosure/foreclosure-rates.html
[3] Massey, Daniel. “NYC foreclosed homes owned by lenders spike.” Crain’s
New York Business Jan. 14, 2010.
[4] Ginty, Molly, M. "Women's Key to Home Ownership Opened Debt Trap." WeNews Jan. 15, 2010





 



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