By Andrew Ehinger
The American dream is turning into a nightmare for more and more Long Islanders. The national foreclosure crisis is now in full swing here. In fact, Nassau and Suffolk counties have some of the highest foreclosure rates in New York State. There are dozens of theories on why it's happening now - but let's not look to the past, let's look forward. How do we stop the slide? The credit experts say stick to the obvious ways of keeping fiscally sound - pay your bills on time. But in the slowing economy and when some people are losing their jobs - that's getting more and more difficult for some. So what can you do? Lots of companies are popping up which for a fee will negotiate with the mortgage companies to help avoid foreclosure. You can find there ads in newspapers and local penny savers - sometimes even on TV. The fees can be just about anything, but we're told they're usually one or two mortgage payments - sometimes more. When homeowners are already struggling to pay their bills, coming up with money up front can be difficult. Still, lots of people will fork over the cash in the hopes that a deal can be made to save their home. However, do you really need to pay that fee? The answer is bluntly: NO. There are dozens on HUD (Housing and Urban Development) certified agencies on Long Island who don't charge a nickel for their help. You could make the argument that a non-profit may not work as hard as someone you are directly paying to get you a good deal, but wouldn't you rather put that fee towards paying off your debts? Seems logical right? On top of that, in my experience the HUD certified counselors have been in the business of helping struggling homeowners for years, whereas other new companies may not have counselors with that same level of experience. In the end, it's a personal choice, but the bottom line all mortgage counselors tell me, is if you feel you're struggling with your debts - get help sooner than later. Here is a list of HUD approved mortgage counselors in New York State.
I mentioned this elsewhere, with might also help people who feel like they're up against a wall.
http://www.consumerwarningnetwork.com/2008/06/19/produce-the-note-how-to/
Forcing the bank to prove their right to foreclose can buy the homeowner time to get through the next step. In some cases, it can buy a lot of time, since the actual owner is now lost among bundled-and-split mortgages (subprime and not) and insurance policies, so it's almost certainly worth consideration.
Posted by: John | November 19, 2008 at 11:30 AM