| Although foreclosures are less likely to be a severe | | | | equity. Equity is the market value of the home minus |
| problem in very strong real estate markets, when | | | | the value of all mortgages and other liens on the home. |
| prices in previously hot markets stagnate or decline, | | | | The con artist now owns the home and has stripped |
| foreclosures can quickly follow. This is a serious | | | | or taken the equity out of the scammed consumer's |
| concern given recent trends in mortgage financing that | | | | home. |
| have extended credit to more economically vulnerable | | | | The number of homes entering the foreclosure |
| populations and generally weakening housing markets | | | | process is on the rise, as numerous news reports |
| in many metropolitan areas. These foreclosures tend | | | | indicate, with some news sources reporting that the |
| also to be spatially concentrated within metropolitan | | | | percentages are climbing towards heights that haven't |
| areas, particularly stressing housing markets in | | | | been seen since the Great Depression. For the |
| neighborhoods where the higher-risk products are | | | | average homeowner, that means that the time to deal |
| more prevalent. | | | | with the risk of foreclosure is now. |
| At first glance, a property in foreclosure as a result of | | | | In order to prevent foreclosure process in real estate |
| a bad credit mortgage seems like a steal. All that an | | | | market and especially in bad credit mortgages, in I |
| investor needs to do is find one, buy it below market | | | | recommend that planners: a) track local lending and |
| price, and then sell it for a higher number. But in the | | | | foreclosure patterns; b) promote healthier mortgage |
| world of bad credit mortgages and foreclosed | | | | markets in vulnerable areas; c) fund targeted |
| properties, nothing is as simple as it seems. | | | | foreclosure prevention and counseling; d) develop |
| If you are in foreclosure and desperate to save your | | | | refinancing/restructuring programs; e) redesign |
| home, you need to be extremely cautious of any claim | | | | programs to promote sustainable homeownership; f) |
| offering to lower your monthly mortgage payment | | | | get foreclosed properties reoccupied quickly; g) |
| while also promising that in a short time you can own | | | | recognize the effect of foreclosure surges on rental |
| your home free and clear of any debt. The con artist | | | | housing markets; and h) be proactive in policy debates |
| claims to offer or arrange for a new loan but instead | | | | on lending regulation and foreclosure processes. |
| tricks the homeowner into selling the home to the con | | | | Prevention is always the best plan, but if you're past |
| artist or a third party and agreeing to either lease the | | | | the point of prevention, the sooner you start to deal |
| home back or purchase it back on a land contract. | | | | with the situation, the more options you have at your |
| The con artist or third party will pay off the existing | | | | disposal and the better off you're likely to be in the end. |
| mortgage or take out a loan. If the scammed | | | | Following current mortgage lending and real estate |
| homeowner lived in the home for a number of years, | | | | market industry trends can help you to form the right |
| he or she likely built up and is surrendering significant | | | | plan of action for your individual circumstances. |