Foreclosure: Mortgage and Real Estate Market

Only available on StudyMode
  • Download(s) : 199
  • Published : October 8, 2012
Open Document
Text Preview
Foreclosure – Individual Crisis That Depresses the Whole Economy

Foreclosure – Individual Crisis That Depresses the Whole Economy

Introduction
1. Foreclosure: past, reality or future.
2. Awareness can help.
3. Impact of foreclosure and lack of knowledge.
Body
1. Process and statistic of Foreclosure
A. Understanding what foreclosure is.
B. Process of foreclosure.
C. Different statistics between the states.
D. Foreclosure case.
2. Reasons behinds foreclosure in different states
E. Leading reasons for foreclosure in the states with the highest instances. F. Reasons for the low rate of foreclosure in the states with low occurrences. 3. Foreclosure effects on individuals, families, communities, government, and lenders G. Short-term effects of foreclosure in a region.

H. Long-term effects of foreclosure on a region.
4. Prevention of foreclosure
I. The FDIC, regulators and the banking industry ways to help and prevent. J. The President Obama Administration.
K. National Association of Foreclosure Prevention Professionals. Conclusion

Thesis
Foreclosure is a bad storm in the real estate business that depressed and weakness the whole economy, including but not limited to regular people and their families, mortgage companies and financial institutions, communities and all levels of government. Many people can avoid foreclosures and keep their houses by knowing their rights and strategies based on the current law.

Foreclosure: past, reality or future
As we know, the world economy for the last several years expresses numerous economic problems. Of all problems facing our economy, the biggest drain is the housing crisis, as result of dramatic increasing in foreclosures. Foreclosure became a part of people’s lives. US home foreclosures hit new record high in 2010 as millions of families faced a disastrous combination of unemployment, decreasing wages, and dropping home values. According to the Real Track Report in 2010, 2,871,891 properties are in a position to file for foreclosure. Due to nearby foreclosure, the projection for lost home equity wealth for 2009-2012 will be $1.9 trillion. Over one-quarter of all mortgaged homes in the U.S. are now either underwater or close to it according to data released in November 2011 by CoreLogic. In the third quarter of 2011, 10.7 million homeowners, 22.1% of all those with mortgages, owed more on that mortgage than the market value of their homes. Unfortunately, as the real estate market shows, foreclosure is not going to stop yet. Thousands of people are still in a pre-foreclosure situation due to various reasons. Awareness can help

As said by Foreclosure Help and Hope organization, homeowners fail to contact their lender because they are embarrassed, don’t believe the lender can help, or are afraid that it would cause them to lose their house faster. On the other hand, by a FDIC report, lenders typically lose $50,000 or more on one foreclosure. That alone shows that, for the lender, foreclosure is not always the best choice. There are a number of programs that lenders prefer to provide for the borrower in order to avoid foreclosure, especially in the down price market. Lenders are in the business of loaning money-not owning real estate. Increasing inventory of homes for sale with decreasing values is an unfavorable situation for both sides of the foreclosure process. In many cases banks aren’t even trying to protect their wins on appeal. They have too many properties to protect and do not have the time or ability to fight for all of them, particularly in the states with a judicial approach. For the borrower, it is very important to remember to not stop fighting, even if it looks like it lost. The important thing to understand is that it is in the interest of all parties, the borrower as well as the lender, that foreclosure is stopped. Impact of...
tracking img