Foreclosure Process Under Review

There has not been much good news lately. This latest wrinkle in the foreclosure mess had got us talking to ourselves.

"A top federal bank regulator said Thursday that he has directed seven of the nation's largest lenders to review their foreclosure processes after learning about the widespread mishandling of homeowner evictions by the industry." [Washington Post]

These are some of the banks contacted by regulators. J.P. Morgan Chase, Bank of America, Citibank, HSBC, PNC Bank, U.S. Bank and Wells Fargo. GMAC put a hold on foreclosures in 23 states.

We heard news stories last week where bank employees signed off on documents without reading them. They were likely told by the boss that they had to keep it moving along and are buried under a pile of what they call "files" and what we call peoples homes.

Foreclosures are on the rise again. The foreclosures that have been in the pipeline are starting to hit the local market which is bad news for most but bargains for some. We're sure when the smoke clears it will be found that some mortgages were foreclosed upon unlawfully. Ponder this: what will happen to the people who now own the homes if they were taken back by the bank and then sold again. Title insurance is likely to offer protection.

"Old Republic National Title Insurance told agents Friday it would stop insuring homes foreclosed by JPMorgan Chase & Co (JPM.N), The New York Times reported Saturday, citing a company memo." [Rueters News]

With all that has happened in the last few years involving mortgages and foreclosures nothing surprises us. We have worked fairly closely with some banks these past years. When we see it all up close and personal our impression is that no matter how much it costs the bank their preference is to foreclose on the delinquent mortgage! We would not have sais this two years ago but it must be so because we have seen several cases where both banks and home owners would have come out ahead with a short sale or a loan modification....and the lender still foreclosed.

We can't prove it with numbers other than our own and those of our fellow associates at this point, but loan modifications are almost unheard of and there are far too few short sales that actually result in a closed sale. The programs set up to help distressed home owners don't seem to help any of them, hardly ever. They may provide some counseling and maybe give money management advice to struggling home owners but in most cases people will not be able to pay their mortgages with advice or counseling they will need more money. (reposted from the St. Paul Register)

Bridge Repairs in Johns Creek

Bridge repairs mean
quicker Fire Department
responses, strengthening
spans could shave off minutes
posted on 10/5/2010






Johns Creek has bolstered eight of its bridges so that fire trucks can cross them, speeding response times in emergencies.

"This is really good news," said Fire Chief Joseph Daniels. "This could cut response times in some parts of the city by one to three minutes. This work by the Public Works Department could make a real difference in making people safer."

A survey by the state last year showed that eight bridges in the city were potentially unsafe for fire trucks. The Fire Department re-routed some of its trucks to be on the safe side.

In dire situations, fire officials would use some of the bridges but make the fire engines stop, halt traffic, and then creep across. Ladder trucks had to avoid the bridges altogether. Pumper trucks can weigh up to 19 tons and ladder trucks can weigh 39 tons. A World War II Sherman tank weighs about 33 tons.

Now, pumpers can roll across the bridges without worry.

In all, 10 bridges received various improvements at a cost of about $641,000. All of the bridges pre-date the incorporation of the City in December, 2006.

In repairing four spans on Bell and Old Alabama roads, crews this summer scraped off up to six inches of excess asphalt layered over the years. The asphalt weighed tons, which limited how much more weight the bridges could handle.

Repairs to bridges also included tightening and adding bracing to beam-supports, fixing guardrails, removing debris from the streams, and placing rip rap to prevent erosion.

The bridges are now refurbished, stronger and safer.
Repaired Bridge Locations:

1.Bell Road over Cauley Creek
2.Bell Road over Chattahoochee River Tributary
3.Old Alabama Road over Johns Creek Tributary
4.Old Alabama Road over Johns Creek
5.McGinnis Ferry Road over Caney Creek
6.Barnwell Road over Hogan Creek
7.Parsons Road over Johns Creek
8.Brumbelow Road over Chattahoochee River Tributary
9.Buice Road over Johns Creek
10.State Bridge Road over Chattahoochee River (Westbound approach slab only)

Facing Foreclosure? What to Do Right Now

A record high 2.8 million properties were hit with foreclosure notices in 2009. That’s the bad news. The good news: About two-thirds of notices don’t result in actual foreclosures, says Doug Robinson of NeighborWorks, a nonprofit group that offers foreclosure counseling.
Many homeowners find alternatives to foreclosure by negotiating with lenders, often with the help of foreclosure counselors. If you’re facing foreclosure, call your lender right now to determine your options, which can include loan modification, forbearance, or a short sale.


Foreclosure process takes time
The entire foreclosure process can take anywhere from two to 12 months, depending on how fast your lender acts and where you live. Some states allow a nonjudicial process that’s speedier, while others require time-consuming judicial proceedings.

Once you miss at least one mortgage payment, the steps leading up to an actual foreclosure sale can include demand letters, notices of default, a recorded notice of foreclosure, publication of the debt, and the scheduling of a foreclosure auction. Even when an auction is scheduled, however, it may never occur, or it may occur but a qualified buyer doesn’t materialize.

Bottom line: Foreclosure can be a long slog, which gives you enough time to come up with an alternative. Meantime, if your goal is to salvage your home, think about keeping up with payments for homeowners insurance and property taxes. Otherwise, you could compound your problems by getting hit with an uncovered casualty loss or liability suit, or tax liens.

Read the fine print
Start by reviewing all correspondence you’ve received from your lender. The letters—and phone calls—probably began once you were 30 days past due. Also review your mortgage documents, which should outline what steps your lender can take. For instance, is there a “power of sale” clause that authorizes the sale of your home to pay off a mortgage after you miss payments?

Determine the specific foreclosure laws for your state. What’s the timeline? Do you have “right of redemption,” essentially a grace period in which you can reverse a foreclosure? Are deficiency judgments that hold you responsible for the difference between what your home sells for and your loan’s outstanding balance allowed? Get answers.

Pick up the phone
Don’t give up because you missed a mortgage payment or two and received a notice of default. Foreclosure isn’t a foregone conclusion, but it’s heading in that direction if you don’t call your lender. Dial the number on your mortgage statement, and ask for the Loss Mitigation Department. You might stay on hold for a while, but don’t hang up. Once you do get someone on the line, take notes and record names.

The next call should be to a foreclosure avoidance counselor approved by the U.S. Department of Housing and Urban Development. One of these counselors can, free of charge, explain your state’s foreclosure laws, discuss alternatives to foreclosure, help you organize financial documents, and even represent you in negotiations with your lender. Be wary of unsolicited offers of help, since foreclosure rescue scams are common.

Be sure to let your lender know that you’re working with a counselor. Not only does it demonstrate your resolve, but according to NeighborWorks, homeowners who receive foreclosure counseling are 1.6 times more likely to avoid losing their homes than those who don’t. Homeowners who receive loan modifications with the help of a counselor also reduce monthly mortgage payments by $454 more than homeowners who receive a modification without the aid of a counselor.

Lender alternatives to foreclosure
Hope Now, an alliance of mortgage companies and housing counselors, can aid homeowners facing foreclosure. A self-assessment tool will give you an idea whether you might be eligible for help from your lender, and there are direct links to HUD-approved counseling agencies and lenders’ foreclosure-prevention programs.

There are alternatives to foreclosure that your lender might accept. The most attractive option that’ll allow you to keep your home is a loan modification that reduces your monthly payment. A modification can entail lowering the interest rate, changing a loan from an adjustable rate to a fixed rate, extending the term of a loan, or eliminating past-due balances. Another option, forbearance, can temporarily suspend payments, though the amount will likely be tacked on to the end of the loan.

If you’re unable to make even reduced payments, and assuming a conventional sale isn’t possible, then it may be best to turn your home over to your lender before a foreclosure is completed. A completed foreclosure can decimate a credit score, which will make it hard not only to purchase another home someday, but also to rent a home in the immediate future.

Your lender can approve a short sale, in which the proceeds are less than what’s still owed on your mortgage. A deed-in-lieu of foreclosure, which amounts to handing over your keys to your lender, is another possibility. The earlier you begin talks with your lender, the more likelihood of success.

Explore government programs
The federal government’s Making Home Affordable program offers two options: loan modification and refinancing. A self-assessment will indicate which option might be right for you, but you need to apply for the program through your lender. A Making Home Affordable loan modification requires a three-month trial period before it can become permanent.

Fannie Mae and Freddie Mac have their own foreclosure-prevention programs as well. Check to determine if either Fannie or Freddie owns your mortgage. Present this information to your lender and your counselor. Fannie and Freddie also have rental programs under which former owners can remain in recently foreclosed homes on a month-to-month basis.

The federal Home Affordable Foreclosure Alternatives program, which takes full effect in April 2010, offers lenders financial incentives to approve short sales and deeds-in-lieu of foreclosure. It also provides $3,000 in relocation assistance to borrowers. Again, talk to your lender and counselor

See Foreclosure homes in Metro Atlanta: http://bit.ly/TodaysForeclosures