Regional Groups Launch New Foreclosure Network

Article from the Washington Business Journal:

The Metropolitan Washington Council of Governments and the Nonprofit Roundtable of Greater Washington launched on Wednesday the Capital Area Foreclosure Network, a group funded by Fannie Mae and Freddie Mac that will work to prevent foreclosures in the Washington area.

The group, comprised of local governments and nonprofits, as well as larger organizations such as NeighborWorks America, plans to conduct marketing and outreach campaigns and support existing nonprofits and coalitions that work with residents at risk of foreclosure.

CAFN released preliminary data from the Urban Institute that found a 2.9 percent foreclosure rate in the region, where foreclosure rates range from 1 percent in Arlington to 6 percent in Prince George’s County.

The institute found that 9.5 percent of all area mortgages were 30 days delinquent or more.

The Urban Institute plans to conduct further research of legal services, housing counseling and social services in the area to help the CAFN better connect at-risk residents to services.

The group will co-host an event May 6 with the Federal Reserve Bank of Richmond and Fannie Mae about new federal protections for renters whose landlords have gone into foreclosure.

It also plans to host an event with Freddie Mac about working with loan servicers.

Man Bulldozes Home Ahead of Foreclosure

A man in Moscow, Ohio has taken unique steps against a bank forclosing on the house he, himself built. Terry Hoskins tore his $350,000 home down with a bulldozer.

Hoskins has been in struggle with RiverHill Bank over his home for over a decade after the Internal Revenue Service placed liens on his carpet store and commercial property after his brother, and one-time business partner, sued him.

The bank claimed his house as collateral and went after both his residential and commercial properties.

Hoskins, who owed the bank $160k, said he'd gotten a $170,000 offer from someone to pay off the house, but the bank refused saying they could get more from selling it in foreclosure.

So Hoskins decided to present the bank with an ultimatum and told them he'd tear it down before he'd let them take it. And so that's what Terry did.

Distressed Property

When buying a shortsale, forclosed home, or real estate owned (REO or bank owned) property, it is important to have someone experienced in distressed properties working for you. You will need an agent that is current on national and state-specific information and regulations involved with these kinds of transactions, and can limit risk to you, the buyer. "Foreclosures and short sales can offer opportunities for home buyers, but it's extremely important to have the help of a real estate professional ... for these kinds of purchases," said NAR President Charles McMillan.

If you are selling a distressed property, you want an agent that can direct you to finance, tax and legal sources. It is also important to have someone in your corner that can help you qualify for short sale and negotiate with lenders.

If you are looking into buying or selling short sale, foreclosure, or real estate owned property make sure that you have an experienced realtor working for you, and make sure that they are specifically certified to handle distressed property transactions.

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