Short Sale or Foreclosure Seem To Be The Only Choice

Home foreclosures are accelerating. More than a year after the government launched HAMP (Home Affordable Mortgage Prevention) a program to aid financially distressed borrowers, many more are losing their homes.


Modifications now look like nothing more than a band aid, temporarily stopping the bleeding for a few. Eventually just about everyone who owns a home will either need to sell or will decide that it's beneficial to just walk. People are beginning to ask "is it worth sacrificing health and well being" in order to avoid losing a house. As the housing market continues to struggle, more and more are deciding that it's time to move on. After all if the market isn't going to recover any time soon it may be time for folks to begin considering their own personal recovery.

With foreclosures again on the rise many are attempting to move a property through a short sale whereby a seller will sell for less than what is owed on the mortgage. A tedious and complicated process because the first mortgage lender will decide how much they'll accept after all outstanding debts against the property are considered, including any HELOC or 2nd mortgage. A short sale requires that the property be listed with a Realtor and required documents must be submitted to the lender.

Foreclosure filings in March totaled 367,056, jumping nearly 19 percent from February and up almost 8 percent from March 2009, according to RealtyTrac.
It was the highest monthly total since January 2005, when RealtyTrac began issuing its reports.
Lenders repossessed nearly 260,000 properties in the first quarter – a record for any quarter, and a 35 percent increase from a year earlier, RealtyTrac said.


More than a year after the Obama administration launched its foreclosure prevention program, only 230,000 homeowners have gotten permanent modifications with lower monthly mortgage payments, (according to a report Wednesday by the Treasury Department) while more than 1.4 million homeowners received offers for trial modifications, which typically last for three months. A band aid.

The Home Affordable Modification Program (HAMP) is lagging well behind the pace of the crisis, and most homeowners in financial trouble will never receive help, according to a report this week by a congressional oversight panel.
For every borrower who avoided foreclosure through the federal program last year, another 10 families lost their homes, that report said.

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