Homeowners Should Not Consider Foreclosure as the End
For Alabama homeowners, the key to avoid foreclosure is to not give up the fight to stay in their homes. This is according to Kenneth Lay, Housing Advocacy Director of Alabama Legal Services, who made such statements during a meeting of the Houston County Bar Association.
For Lay, many homeowners end up losing their homes to their mortgage holders because they gave up on the thought of being able to stop foreclosure. Luckily, there is a growing pressure on these mortgage companies to work with their lenders in order to avoid foreclosure.
Negotiating with your lenders can be frustrating at times but the key is to come prepared. Homeowners should make an effort to organize their finances first in order to have a clearer picture of their current financial situation. It is also crucial to be realistic when it comes to determining how much you can really afford and knowing which mortgage product is best for you.
In addition to the fact that more lenders are becoming more and more agreeable to work outs, Alabama homeowners will also be enjoying a federal grant given by the Department of Housing and Urban Development to the state government for the creation of housing programs. These programs will provide assistance to these troubled borrowers in the form of foreclosure counseling and mortgage negotiations.
Compared to other states like California, Nevada and Michigan, homeowners in Alabama are certainly in a better position. The state ranks between 37 and 42 in terms of foreclosure rate.
Last month, Alabama foreclosure rate showed one filing per 2,552 homes, putting the state at the 41st spot. Compared to last year, this figure is 30 percent higher. Nationwide, there were 303,879 homes that entered some stage of foreclosure, up by 11.65 percent from July and 26.69 percent from August 2007.