Nationally, the rate of foreclosures broke records during the last three months. According to RealtyTrac, an online marketer of foreclosed homes, 937,840 homes were foreclosed on during the past quarter, 5 percent more than in the second quarter and 23 percent more than a year ago.
Lori Batdorf, executive director of Neighborhood Housing Services, said as of the end of August, the number of people that have sought foreclosure assistance from her offices nearly doubled over totals for the entirety of 2008, with 426 foreclosure inquiries as of Aug. 31 compared to 287 for all of last year.
While more lenders are offering loan modifications to struggling homeowners, Batdorf said the system is back-logged while the clock is still ticking on defaulted mortgages. This means homes can still end up on the auction block as counselors wait for a response from the bank.
“The bulk of foreclosures are being pulled but frankly we have to ask ourselves if the ones that are being pulled, are they keeping their homes or are they going back into the system six months later?” she said. “That is impossible to tell right now.”
Reaching out to a HUD-certified agency for help can make workouts more probable. Lenders are proving more flexible with modifications than a year ago and are even counting unemployment payments as income, which wasn’t happening before joblessness eclipsed adjustable rate mortgages as a reason for non-payment, Batdorf said.
“It all completely depends on the lender. The big thing is demonstrating that a (loan modification) isn’t a quick fix and you can successfully down the road make the payments,” she said.
For more information on Neighborhood Housing Services, which offers foreclosure assistance to both Butler and Warren County residents, call (513) 737-9301.
Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.
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