Pet owners who face foreclosure have a hard choice to make when it comes to giving up their furry family members, but charities across the country are able to give some animals a new chance.
Organizations including Foreclosed Upon Pets, Lost Our Home Pet Foundation and more are able to assist people who can no longer keep their pets for a number of reasons, including foreclosure.
The recession hit a few demographic groups especially hard, and older Americans is one of them. Some Americans believe that people their grandparents' age have stockpiled money and are living quite comfortably in their golden years. Unfortunately, for many seniors, that's just not the reality.
New data released by AARP shows that older Americans are struggling with foreclosure. While they are not as likely to lose their homes as people in other age groups, the number of Americans over age 50 who lost their homes to foreclosure between 2007 an 2011 totaled 1.5 million.
There are many homeowners in recent years who have lost their homes through foreclosure when they've fallen behind on their mortgage payments, or because of federal tax liens over significant amounts of income tax owed to the IRS. In what some are calling a second foreclosure crisis, some homeowners are losing their residences because of tiny state or local tax debts, sometimes amounting only to a few hundred dollars.
Many states have antiquated laws that provide for state or local government to quickly collect overdue property taxes or even more minor fees for sewer and water services by selling investors' tax liens on a homeowner's property. These investors, after paying the amount owed to the state or local government, then have a claim on the home. The homeowner is expected to pay interest on the debt to the investor. If they neglect to pay the interest or the principal owed, the investor in some cases can ultimately foreclose on the property and take possession of it.
The month of May saw the number of Illinois homeowners facing foreclosure increase by 29 percent over April figures. This also represents a 54 percent increase from May of the previous year. There were a total of 16,318 foreclosures filed in Illinois in May, including bank repossessions of homes as well as auction sale notices and default notices issued.
What this amounts to is that one out of every 325 housing units in Illinois were impacted, making the state the fifth highest in the nation for foreclosure activity. It may be the case, some analysts say, that some of these actions will ultimately be resolved through auction sales or short sales rather than banks taking possession of the homes.
The troubled economy has increasingly made homeownership out of reach for many in the U.S., especially young families. Those who do own homes often fall behind on house payments in the event of a job loss or major illness, especially if they lack health insurance, leaving them exposed to the possibility of foreclosure.
High unemployment has caused many young people to delay getting married, starting a family with children, beginning careers, or starting to save to build up the funds needed for a down payment. For a large number, homeownership is not even thought of as in the realm of possibility anymore.
In the best of housing market times, the pre-recession era of 2005, less than 1 percent of all homes sold were properties in foreclosure. At the other end of the spectrum, in the first quarter of 2009, 45 percent of all home sales were foreclosed homes.
Over a quarter of the more than 233,000 homes sold during the first quarter of 2012 were homes in the foreclosure process or already repossessed by mortgage lenders, according to RealtyTrac. Compared to the height of the economic collapse, a 26 percent foreclosure sales rate might seem like a tremendous improvement.
Continue reading 26 percent of 1st quarter U.S. home sales were in foreclosure
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It's certainly not uncommon for people to miss making their mortgage payments in tough financial situations. That's what has caused the surge of foreclosures in recent years. Even though it doesn't make the news as often, homeowners who live in an association often are unable to pay their dues.
However, when a person files for bankruptcy, it's still possible for the homeowners association to collect such assessments. But how much they get depends on whether a unit owner files for chapter 7 or chapter 13 bankruptcy.
Back in the first quarter of 2010, the percentage of home loans at least 30 days late peaked at 10.1 percent. The rebound has been slow, but the numbers have trended downward. For the first quarter of this year, the number dropped to 7.4 percent from 7.58 percent in the previous quarter, according to new reports.
That's a promising sign that the economy is brightening. That means those who have faced debt problems have a little more money in their pocket to pay their bills. The delinquency rate is the lowest since 2008, when had been just under 7 percent.
The financial crisis has taken an emotional toll on countless Americans. New research shows that children are not immune.
A report from a bipartisan advocacy group called First Focus concludes that an estimated 2.3 million children have lived in homes that have been lost to foreclosure. The Washington, D.C.-based group also found that one in 10 U.S. children will also be affected by the country's rise in foreclosures. Another 3 million children currently live in homes at risk of foreclosure because home loans are in the foreclosure process or are seriously delinquent, according to the Sun Times.
The Troubled Asset Relief Program was passed by Congress in 2008. The $700 million program was designed to help homeowners struggling with mortgage debt, as well as keep big banks in business. But lately the program has come under fire for having only a fraction of the intended effect.
The Special Inspector General for the TARP program recently noted in a report that Hardest Hit Housing Markets program, which reportedly has $7.6 billion available in the 18 hardest hit states, has given out just 3 percent of the funds as of the end of last year.
Federal investigators have reported finding proof of the accusations of robosigning of home foreclosure documents against Wells Fargo, Bank of America, and a number of other large mortgage service companies. They apparently signed documents to initiate court proceedings to process foreclosures, in some instances not bothering to determine whether the information on the forms was accurate.
The report was issued recently by the federal Department of Housing and Urban Development and followed the $25 billion settlement entered into by mortgage companies of claims arising from the robosigning scandal. About 49 different states were involved in reaching the settlement with the major mortgage companies.
The number of Chicago foreclosures last month was up significantly when compared with a year ago. But that wasn't entirely unexpected, and is probably the result of artificially low numbers last year due to a backlog of foreclosures. Now that some hurdles are out of the way, economists predict more annual increases this year. It's not necessarily reflective of the current state of the economy, though.
According to the Chicago Sun-Times, foreclosures in the city fell 8.5 percent in February compared to January, but were up over 43 percent compared with February 2011. One in every 302 homes in the area received a filing last month, with 12,587 total. That's down from 13,750 the month before, but up substantially over the same period last year.
For many consumers in today's troubled economy, filing a chapter 13 bankruptcy plan may be a necessary part of financial recovery. Even if someone already has a mounting burden of debt resulting from past incidents such as medical bills or job loss, the need to have funds for various purchases never goes away.
Chapter 13 plans are designed for wage earners to try to pay off some of their past debt, while allowing them a sufficient budget to be able to also pay for immediate daily needs. Such plans consolidate all existing past debts into one sum and stretch out the repayment obligation over a time period ranging from three to five years.
Continue reading Chapter 13 bankruptcy can be good option for wage earners
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Statistics show that there were declines in both consumer bankruptcy filings and home foreclosures during the last six months of last year, perhaps indicating a possible upswing in the overall economy. Bankruptcy filings by individual consumers were reduced to approximately the level they were at before the onset of the recession in 2008.
Consumer bankruptcies declined by 22 percent by the last three months of the year, compared with the second quarter, while business bankruptcies were down by 28 percent. The recent decrease in the number of foreclosures being processed was reflected in the fact that a total of 86,037 foreclosure auctions were scheduled to be held in January 2012. That's approximately a fifth below the number held in the equivalent time period the previous year.
The U.S. housing crisis has been going on for years, and according to a Housing Scorecard Report by the Obama Administration, foreclosure completions are on the rise. In general, foreclosures have declined, but Illinois has one of the highest foreclosure inventories.
The problem is not nearing an end anytime soon. The Department of Housing and Urban Development's assistant secretary says conditions are still in need of improvement.
People who own properties for which they cannot afford to pay may face challenges whether they file for bankruptcy or not. It is possible to lose a home after filing for Chapter 7 bankruptcy, a process that typically allows for a financial "fresh start" by dramatically decreasing financial liabilities.
Although filing for bankruptcy doesn't always preclude property loss, owners will definitely lose their homes if they fail to pay the mortgage outside of bankruptcy. Homeowners should identify the most appropriate method of property management during bankruptcy proceedings.
Members of the military who are on active duty have plenty on their plate. In addition to performing their everyday work and thinking about their families back home, the last thing they need is to worry about finances or debt problems.
It's well-documented, however, that many service members have been faced with unfair foreclosures and other mortgage or credit card abuses. The government is trying to change that with the comprehensive settlement of mortgage litigation, according to the New York Times.
The latest statistics detailing the state of the housing market in the U.S. for the month of November 2011 show that the price of homes dropped for the third month in a row in the majority of major cities. Many homeowners are currently facing the risk of foreclosure.
The price decline was recorded in 19 of the 20 cities that are routinely tracked by a major index operated by Standard & Poor's/Case-Shiller. The steepest decreases were in the cities of Atlanta, Chicago and Detroit. Phoenix stood alone among the major cities scrutinized in showing an actual increase in home prices.
Early last month, we posted about a 103-year-old woman who narrowly escaped eviction from her home after a threat of foreclosure. We also reported a similar situation in which a 101-year-old woman was promised she could move back into her foreclosed home after being evicted last fall. Apparently she will be forced to leave after all.
Despite the federal government's backtrack following the foreclosure, officials are now saying the elderly woman won't be permitted to return to her home because of allegedly unsanitary conditions.
Continue reading 101-year-old woman can't stay in foreclosed home after all
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The number of foreclosures last year was down compared to the peak in 2010, but that's probably because banks had to slow down to correct procedures and legal problems. While the number of default notices and foreclosures last year fell from 2.9 million in 2010 to about 1.9 million last year, the stage is set for a more aggressive year.
There are now about 3.5 million "seriously delinquent" mortgages. A seriously delinquent loan is defined as being four months in arrears. With banks catching up with proper procedures, they are likely to process foreclosures faster this year.
Continue reading Expect a big wave of foreclosures this year, economists say
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