Recently I was a guest on the weekly radio program We Speak House. The show airs every Saturday morning at 9:00 am on the local radio dial. Jason Micare, President of the Capital District chapter of ASHI Certified Home Inspectors hosts the show and does a great job of keeping things fun and conversational. The focus of this segment was the $8,000 tax credit, the New York State MCC and the current state of the Capital Region housing market. Because Jason is not only a home inspector but also a real estate investor, he is acutely aware of what’s happening in the local market and understands how fortunate we are to conduct business in an area that’s significantly more stable than most markets in the country. That being said, I must acknowledge that although I think the Capital Region is fairly insulated from this turbulent economy and that the real estate market here is more stable than most, there are still a number of distressed homeowners in the area who are experiencing economic hardship, can’t make their mortgage payments and, as a result, will lose their home.
As a real estate agent, I’m there to see that glorious moment when house keys are turned over to the home buyer. It is a proud moment—for everyone. Unfortunately, that jubilation doesn’t always last. This past week I received phone calls from home owners who are having difficulty making their mortgage payments. Some have missed payments while others are barely making end’s meet. If you or someone you know is having difficulty meeting their obligations, I’ve listed a few important things to do:
1. Immediately contact your lender or a HUD-approved housing counseling agency (1-800-569-4287). If you’re calling a lender, ask for either the loss mitigation department or a department that deals with distressed home owners. An approved housing counselor can help you understand your options and the law. They can also negotiate with your lender on your behalf. The longer you wait to call either one, the less likely your lender will be willing to negotiate. Also, make sure you can provide your financial information including all monthly income and expenses.
2. Get Educated. Go to the U.S. Department of Housing and Urban Development website to better understand your options.
3. Avoid foreclosure prevention companies. A HUD approved housing counselor will negotiate with your lender for free. Although many of these businesses are legitimate, they aren’t necessary—your lender or housing counselor can provide you with the same information or services.
4. Avoid Scams! Unfortunately there are individuals and companies looking to take advantage of an unfortunate situation. Never sign any legal document without understanding all the terms and always speak with an attorney.
According to RealtyTrac’s US Foreclosure Market Report, the Capital Region foreclosure rate increased more than 31% in the the third quarter over the last, a distinct difference from the first quarter report when the Capital Region finished low on RealtyTrac’s list-- number 186 of the country’s 203 largest metropolitan areas to be exact. But although the number of foreclosures are beginning to creep up, we are still a far cry from what’s happening in the hardest hit areas of this country, and I think we local agents should be grateful for that. I also think we have a responsibility to reach out and educate these distressed home owners. Many of them are looking for answers and don’t know where to turn.
