No one wants to consider the possibility of foreclosure, yet more and more Americans have faced this nightmare in recent years.
The Statistics
In the time since the beginning of the economic recession in 2008, more than 4 million homes have experienced foreclosure. CoreLogic, a data collection company, recently reported a national foreclosure inventory of more than 1 million homes — about 3 percent of all homes carrying a mortgage. Yet, many of these statistics have little correlation with personal fiscal responsibility. Rather, the high foreclosure rate is a result of a great number of unemployed or underemployed individuals, falling housing values, and a myriad of other factors resulting from a depressed economy. Even the current encouraging signs in the housing market do little for those struggling now to make overdue payments.
Effect of Hurricane Sandy
These statistics are certainly frightening to every homeowner struggling to make their next mortgage payment, but those with the added burden of recovery from Hurricane Sandy have additional worries. In the aftermath of the storm, many of these families faced not only severe property damage but also significant amounts of missed work. Together, these factors ate away at their already slim savings, making foreclosure a real possibility.
Announcement Brings Temporary Relief
However, the plight of these homeowners has not gone unrecognized by the federal government, and a new announcement may give at least temporary relief. Shaun Donovan, the U.S. Housing and Urban Development Secretary, and Edward J. DeMarco, the Federal Housing Finance Agency Acting Director, recently announced a ninety-day halt on the initiation of new foreclosures and on the processing of current foreclosures. This moratorium applies to properties located in the regions declared to be federal disaster areas following Hurricane Sandy. Mortgages affected are those held by Fannie Mae, Freddie Mac, and the Federal Housing Authority. In addition, these homeowners may also be able to apply for forgiveness of late charges, modifications to their loans, and forbearance. This halt in foreclosures is in effect until April 30, 2013 and is intended to provide more time for recovery in these hard-hit areas.
Is your home threatened by foreclosure? Do you know what your rights are or if this new announcement even applies to you? Don’t try to struggle through the paperwork alone. The Law Offices of David Witkon are experienced in helping homeowners through the intimidating process of foreclosure appeal. Don’t become one of the statistics. Contact us today for an appointment.