10:10 Economy: Foreclosure Advice

The number of home foreclosures is expected to rise to more than 8 million in the next four years, unless the government steps in to help. A local mortgage broker says there are some things homeowners can and should do before they fall into that same boat.

Terry Bloom says if you're falling behind on your mortgage payments, act now before its too late. He says when your lender calls about late payment, don't dodge the call, talk to them and figure out a way to strike a deal or to get payments reduced for a while. Lenders oftentimes will change your mortgage from an adjusted to a fixed loan, and possibly lower your interest rate, because the bottom line is both the homeowners and lenders lose out when a home goes under.

"Because of the market and home values dropping, lets say the value of that home is now 170 thousand dollars, there already 20 thousand dollar upside down. If the lender forces foreclosure they might only get 140 thousand dollars for the home if they have to sell it on the market or put it on auction, which means that's a 50 thousand dollar difference in principle amount let alone attorneys fees."

Bloom says if your lender is being difficult, ask to talk with a supervisor. And f the supervisor is uncooperative, he suggests calling an attorney.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
23 WIFR 2523 North Meridian Road Rockford, IL. 61101 Business: 815-987-5300 Fax: 815-965-0981 News: 815-987-5330 Fax: 815-987-5333
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 39145922 - wifr.com/a?a=39145922
Gray Television, Inc.