Friday, April 20, 2007

Subprime, Foreclosures and Second Chances

Home foreclosures are up dramatically across the country as part of the subprime fallout, but has spiked especially high in certain areas (see my post on subprime data and heat maps). If you are one of these people who is getting close to foreclosure and wondering what to do, Clark Howard (Clark Howard - Wikipedia) is suggesting that you call your lender and try to work out a deal. He reporting that to avoid foreclosures some lenders have recently began agreeing to extend loans to 40 years. While not a huge amount of relief (usually about 5%) it may be enough to help you ride things out for a little bit. Clark is saying that foreclosures rates have risen astronomically and are up 1,100% in Ventura Co. California, 900% in Orange Co., and 700% in most other Southern California counties and speculative areas in the southwest. Knowing that your lender likely has a lot of other people in the same situation might give you a little big of leverage when negotiating.

Clark Howard - Apr 17, 2007 Foreclosures Up