Local Government Takes Measures against Foreclosure
By Foreclosure Fighter Staff Writer
When Dorothy Gale taps her heels together three times and declares that “there’s no place like home” in The Wizard of Oz, almost everyone agreed. But, as adjustable rate mortgages (ARMs) increase and homeowners find themselves unable to make monthly mortgage payments, more people are realizing that their home may not be the solid anchor they once thought it was.
As ARMs rise and home payments become more difficult to make, many American families are learning all about the path to foreclosure. What they don't know about, though, is what to do to prevent foreclosure, or how to take action to save their homes.
Estimates made by Connecticut's Eyewitness News suggest that 140 subprime lenders have gone out of business, had serious layoffs, or declared bankruptcy in the past year, leaving countless families in the lurch, unsure whether or not they'll be able to save their homes.
Luckily, one Arizona town has decided to act. The town of Surprise is reportedly offering a course to educate its residents about how to handle the rising costs of home ownership.
According to azcentral.com, this class is one in a series of "financial fitness" courses hosted by the Surprise Community Initiatives Department every year. Specifically, this class will focus both on explaining how changes in the lending industry will affect homeowners and on advising students about avoiding foreclosure and managing increasing mortgage rates.
The class will be particularly helpful in Surprise because of the traditionally low cost of housing there, according to the article. Many homeowners were attracted to Surprise in the first place because it was one of the few places where they could afford to buy.
And Arizona isn't the only place where the local government is getting involved. That's good news, since estimates put the number of families around the country facing foreclosure at around 1.7 million.
In Connecticut, where foreclosures have increased 100% over the past year, the governor has reportedly created a task force to find solutions. Among other things, the state has set up a hotline for families facing foreclosure. The governor has also recommended consulting with credit counselors.
So what does this mean for families facing foreclosure who don't happen to live in Surprise, Arizona or Connecticut? The increasing awareness of local governments means that, with a little research, you might be able to find similar programs close to your home.
President Bush has reportedly announced that he wants to change Federal Housing Authority regulations, basically allowing for the guarantee of some loans.
So, while facing foreclosure may seem like a bleak reality, help is on the way.