There Are Options for Foreclosure Victims

There are options left for foreclosure victims. About two years previously Falona and her husband Alexander had purchased their first house in Jackson. Their combined income made it possible for them to make the monthly mortgage payment of $552. But when this year the amount jumped to $772 they felt cornered. The situation worsened when Alexander lost his job.

The foreclosure was scheduled for 16th September. But on 13th September Falona decided to clutch at a last straw of hope. It was a workshop conducted by Neighborhood Assistance Corp of America. The impending foreclosure was stopped and the payments brought down to $432. Falona was thankful and said, “I didn’t know anybody could do anything like that.”

Taking a leaf out of Falona’s book, house owners in Mississippi should know that if foreclosures are knocking there is nothing to panic for there is help around the corner. It is just that many people are not aware of it. Julie McAdory of Consumer Credit Counseling Service of Greater New Orleans said that she was amazed that according to statistics over half of those who have suffered foreclosure have never “picked up the phone and called their lender.” She explained that fear held them back. They could not think that anybody could be out there ready with a helping hand. Actually there is a surfeit of counseling agencies whose services are free. David Johnson Sr. of BankPlus, Jackson said, “Banks will work with consumers to modify their loans or make the loans more affordable.”

Mississippi ranks among the top 20 worst affected foreclosure states according to the findings of Mortgage Bankers Association. The negative impact of this on the economy of the state is about $235 million said spokespersons of FDIC. The number has been reached by calculating the fall in the value of reo homes as well as neighbouring non-foreclosed houses and consequent decrease in property tax collections. The adjustable mortgages have totally confused consumers.

Many have signed papers without going through the fine print and relying only on smart sales talk and good faith. Jeanette Bland of NACA (the agency that assisted Falona) said that if the effort is made in the right direction the adjustable rate mortgages could be made affordable. NACA conducts workshops for householders, meets them personally and counsels them on their monthly family budgets. She said that they “restructure the loan package for the lender, according to what the homeowner can afford.”