Foreclosure Fairs

Posted on April 2nd, 2008 by saman

Recently in California there was a foreclosure fair. Crowds piled into Merced Civic Center with their financials in hand, hoping to purchase a home. Two hundred people attended the fair. This is a trend that is occurring more and more often in areas that have been hit hard by the current mortgage crisis.

An area known as Central Valley in the state of California is currently the foreclosure capital of the nation. In this area about forty percent of loans made in 2006 are now in foreclosure. Foreclosure is a very stressful situation for homeowners. Families want to learn how to prevent foreclosure.

Some radio stations in this area of California are telling people to instead of trying to save their homes; they should simply walk away from them. They should walk away and try to find another place to live. Many people are doing just that but they should know all of the options that are available to them.

Local politicians declared this month, “Foreclosure Prevention Month.” Local politician stated that the crisis at hand is very clear.

At a foreclosure fair, financial counselors and mortgage lenders provide advice to homeowners that are desperate. The state will begin a series of forums that offer advice on how to preserve your home. These fairs are designed to help homeowners who may be fearful or prideful to call their mortgage holder when they begin to fall behind on their mortgage payments and may be facing foreclosure in the near future. Studies have shown that the majority of homeowners are quicker to go to non-profit or community groups than to banks and lenders for assistance.

Organizers of the California foreclosure fair were afraid that they would not get many people to attend the fair. To their surprise they received an overwhelming response.

Ten thousand homes have currently been foreclosed on in the area and more are going to be foreclosed on in the next few months.

Home values are suffering as well. The value of a home in Merced County was down thirty three percent and the number of homeless is growing. A community group in the county did a survey and discovered that out of one hundred and four homeless adults five had been homeless for more than a year after they lost their homes to foreclosure. Lenders in the city expect this number to increase. There is a real fear of becoming homeless. Out of six families who were randomly interviewed, four of the families had already gotten eviction notices from their mortgage holders. All six of the families said that they would have no place to go if they were forced to leave their homes.

Other families have similar tales. A couple who had a broker that told them three years ago that he could help them refinance their mortgage, will no longer take their calls. The mortgage on this couple’s home went from nine hundred dollars a month to above two thousand dollars a month.

Officials in California or unsure how many people who attended the event will actually be able to stop foreclosure. Many people are complaining that banks have rejected calls for help for those who are trying to stay in their homes.