BluegrassForeclosure.com

From national efforts to efforts promulgated by the states, here is what Ohio is trying to do.  I wouldn’t be surprised if something like this measure crosses the Ohio River to here in Kentucky.

From Cincinnati.com:

Two Ohio lawmakers are gearing up for round two of their push for a six-month freeze on home foreclosures, taking their case to the Senate for the first time since the Ohio House passed the bill in May.

“State Reps. Denise Driehaus, D-Price Hill, and Mike Foley, D-Cleveland, will testify Tuesday on the Ohio Foreclosure Prevention Act, also known as House Bill 3.

Since the Democratic-led House passed the bill, the crisis has not gone away. Driehaus said. “It’s frustrating because the problem is getting worse and we haven’t done anything about it,” she said. “The House has but the Senate hasn’t. ”

She’ll go before the Senate Finance Committee armed with statistics she has collected and plenty of anecdotes detailing how bad the problem remains in her district.

. . . .

The number of mortgage foreclosures in Hamilton County remains steady; the Hamilton County Clerk of Courts reporting 5,698 in 2009, compared to the previous year’s 5,750.

Ohio remains at number 13 in the list of state’s with highest foreclosures, according to RealtyTrac. Nevada tops the list.

There were just over 224,500 new foreclosures nationwide from June through November, the foreclosure listing firm reported. Of those, 6,381 were in Ohio, with Hamilton County being third highest in the state behind Cuyahoga and Franklin counties.”

This article from the Courier-Journal suggests what I fear may happen.

“The more borrowers who can’t be helped, the more foreclosed properties will flood the market. And that means the nation’s housing market, which appeared to recover last summer, could soon take another turn for the worse.

A record 2.8 million households were threatened with foreclosure last year, up more than 20 percent from a year earlier, RealtyTrac Inc. reported this week. The foreclosure listing firm expects another record this year.

Home prices, meanwhile, are down 30 percent nationally from the peak in mid-2006, and there is mounting evidence they will fall again over the winter as low-priced foreclosures make up a larger proportion of sales.

. . . .

The Obama plan aims to help borrowers in financial trouble by making their payments more affordable. Modifications made under the program include a lower interest rate and often a longer repayment period. The average monthly payment has been cut by $500.

The homeowners receive temporary modifications, which are supposed to become permanent after borrowers make three payments on time and complete the required paperwork, including proof of income and a letter explaining the reason for their troubles.

However, just 66,500 borrowers, or 7 percent of those who signed up, have completed the program as of December, the Treasury Department said Friday.

Another 49,000, or more than 5 percent, have dropped out of the program entirely — either because they missed payments or were found to be ineligible. Thousands more are awaiting an answer.”

That’s why the loan modification program will simply put off the inevitable for another 6 – 9 months.  Most individuals who are in the homes now, couldn’t afford the payments before, are in over their heads, and won’t be able to afford the payments if they get a modification anyway.

Tell me what you think will happen?

From Kentucky.com, the Obama Administration is attempting to get relief to many of the areas getting hit by the foreclosures around the country by having banks implement loan modification programs.  So, the question is, will this be a permanent solution or simply staving off the inevitable for another 6 months or so?  Here some excerpts:

“After a month of intense pressure on banks and other mortgage servicers, the Obama administration on Friday reported improvement in its much-criticized program to reduce mortgage payments to stave off foreclosures.

The number of temporary loan modifications that had been made permanent had more than doubled to 66,465 as of Dec. 30, the Treasury Department said.

In addition, another 46,056 three-month trial mortgage modifications were approved and awaiting only the homeowner signatures before they were made permanent as well.

As of Nov. 30, only 31,382 mortgages had been permanently modified.

. . . .

But with 2.8 million foreclosures last year, according to RealtyTrac, and filings in December up 14 percent from the previous month, the administration’s Home Affordable Mortgage Program isn’t doing enough to stem the tide of foreclosures, critics said. The program provides incentives to mortgage servicers to reduce monthly payments for struggling homeowners.”

Regardless of what can be done at this point, we simply have to ride out the worst of it.  In the meantime, that means get investment opportunities for the savvy investors.

Overall, massive foreclosure rates is not good for the economy.  We like to make sure that people have the ability to invest in foreclosures, if they want.  But if you are looking for good tips to prevent foreclosure, then check out this Courier-Journal article.

The top ten tips are:

1. Don’t Wait

2. Organize important papers

3. Get informed

4. Go to www.hud.gov

5. Call for Foreclosure prevention help

6. Bug your lender again and again and again

7. Slash your expenses

8. Scan for Scams

9. Consider a short sale

10. Know when to fold ‘em

Read the rest of the article.

The Paducah Area Development District was given funds from the Neighborhood Stabilization Program (NSP).  Click here for the full stroy.