Avoid foreclosure by using new multi-media tool

Having trouble paying the mortgage? The folks over at Fannie Mae have launched a free interactive tool called WaysHome to help struggling homeowners avoid foreclosure through a series of multi-media simulations.

As part of the group's “Know Your Options” initiative, the WaysHome video uses online technology to allow homeowners to put themselves in real-life situations, make informed choices and immediately see the outcomes of those actions.

“In 2011, millions of homes will be at imminent risk of foreclosure. As we enter a new year, the company is expanding its efforts to help struggling homeowners avoid foreclosure – WaysHome is an innovative tool to help achieve this goal,” says Jeff Hayward, Fannie Mae Senior Vice President.

The WaysHome video is set in a neighborhood that has been hurt by the foreclosure crisis. Real actors play three residents of the neighborhood – each in financial distress. Visitors to the site are assigned a character archetype after answering a few questions about their financial situation.

Through video reenactment, WaysHome allows homeowners to experience scenarios that address a range of options for avoiding foreclosure that include repayment plans, forbearances, modifications, deeds-in-lieu and short sales.

“With a variety of financial hardships and other circumstances affecting homeowners across the country, making educated decisions is more important than ever,” adds Hayward. “It’s a travesty when people lose their homes because they don’t know or understand their options."

Hayward continues, "Homeowners who are proactive about working with their mortgage company, housing counselors, or using consumer tools like WaysHome have a significantly better chance of finding a solution that allows them to avoid foreclosure.”

Click here to check out WaysHome.

Fannie Mae launches foreclosure prevention site

Are you a homeowner struggling to pay your monthly mortgage? You're not alone.

Fannie Mae announced this week the launch of a new online resource called KnowYourOptions.com, a consumer education Web site geared toward homeowners trying to juggle mortgage payments in this post-recession economy. The site serves up tips and provides guidance on how to work with your mortgage company to find viable alternatives to foreclosure.

“Through foreclosure prevention programs, borrower outreach, underwriting guidelines and servicer engagement, Fannie Mae is taking a comprehensive approach to helping struggling borrowers,” says Jeff Hayward, Senior Vice President, Fannie Mae's National Servicing Organization. “Identifying accurate resources and finding the right answers can be a difficult challenge for borrowers facing hardship and a flurry of disparate, incomplete and sometimes fraudulent information."

Hayward continues, "Know Your Options is the company's newest effort to reach distressed homeowners and is designed to bring the best information and guidance together in one place so that struggling borrowers can focus on finding solutions that work for their particular circumstances.”

Key features of KnowYourOptions.com include:

• Interactive Options Finder to help homeowners identify options that might be right for their situation;
• Calculators to help borrowers understand how many of the options work, including refinance, repayment, forbearance, and modification;
• Videos featuring real homeowners discussing how they received help and housing counselors providing advice;
• A virtual assistant to walk homeowners through key areas of the site; and
• Next steps and helpful forms, including a financial checklist and contact log to help borrowers be prepared when contacting their mortgage company or housing counselor.

Click here for the lowdown.

Why do home foreclosures keep rising?

Despite recent positive economic news, home foreclosures remain high around the country.

Analysis conducted by RealtyTrac, a Web site that complies foreclosure data, suggests that more than one percent, or about 1.5 million properties, reported a foreclosure filing during the first two quarters of 2009. The high numbers are probably a function of ongoing unemployment and the loss of equity that many homeowners have experienced.

As the national unemployment rate approaches 10 percent and is already considerably higher in other parts of the country, more and more people are struggling to pay their mortgages. Savings and emergency funds have dwindled and jobless benefits are winding down which makes it harder to stay current. Decreases in home equity have also caused more homeowners to become "upside down" on their mortgages, meaning that they owe more than the home is worth.

A mortgage that is greater than the equity in a home can push more properties into foreclosure because the owners have less of an incentive to continue to pay. Selling the home becomes very difficult in these situations because prices are often depressed and the owners would take a loss.

Washington has shown support for President Obama's plan to ease foreclosure rates, but some lenders have been slow to modify their customers' loans. Faced with a high volume of requests and a level of reluctance to modify loans on the part of some mortgage companies, foreclosures remain high.

Soon after employment levels rise and the market begins to satisfy pent up demand for housing, real estate prices should rise and foreclosure rates should drop considerably.

--Bridget O'Sullivan

Demystifying the real estate and mortgage market

In these uncertain times, the folks at Consumer United thought it would be a good idea to conduct a free information session on various topics related to real estate and mortgage for our members.

So, if you're looking for answers when it comes to buying or selling a home, facing a foreclosure or refinancing your property, the seminar will be well worth your time.

The panel in Stoughton features professionals with years of experience in real estate and mortgage and will be accessible to answer any questions.

When: 6:30 p.m. Wednesday, Nov. 12, 2008

Where: Re/Max Landmark, 630 Park Street (Rt. 27), Stoughton, MA 02072

This info session is sponsored by Consumer United in association with Re/Max Landmark. Light refreshments will be served. RSVP preferred at kevin.pelissier@consumerunited.com or call Kevin Pelissier at 617-440-5937.