At Least One Million Foreclosure Filings Pushed Into 2012


It is estimated that approximately 1.7 million properties entered foreclosure during the first six months of 2011. This figure, however, is actually lower than originally anticipated. Unfortunately the reason is not due to a decrease in foreclosures. Rather, mortgages are being stalled as result of ongoing problems with mortgage servicers and the housing market. According to estimates from Realty Trac, approximately 1 million foreclosures should have taken place in 2011, but did not, and will now happen in 2012, or later even. Most likely this will slow the housing market’s recovery. Continued defaults and foreclosures push down home values, and ultimately hurt the economy.

A Modest Move Toward Mortgage Relief

Given this backlog and the unprecedented amount of homes either currently in or heading into foreclosure, new rules may help a limited amount of borrowers. The government-run mortgage companies, Fannie Mae and Freddie Mac, have issued rules that will help homeowners who are current on their mortgage payments, to refinance their high-rate mortgages into lower-rate loans. That means lower monthly payments. The goal of lowering payments is that it will reduce the likelihood of default and, ultimately, reduce the skyrocketing foreclosure rate.

Prior attempts by the Obama Administration to ease mortgage debt relief have come up short. In order to be more effective, this new plan requires the administration to diligently monitor the rules, to prevent banks from charging excessive fees or imposing overly restrictive rules on homeowners.

Posted 2.15.2012 To qualify, borrowers must meet the following requirements:
  • owe more on their mortgages than their homes are worth, or
  • have only a small amount of home equity
  • have loans owned or backed by Fannie Mae or Freddie Mac
  • have not missed a payment in the last six months
  • have not had more than one late payment in the past year

As you can see, the new refinancing plan will not provide relief for most of those homeowners who are already underwater. An estimated 14.5 million borrowers are behind, on average, by $50,000 in their payments. Only 1.5 to 2 million will qualify to refinance under the new standards, according to private analysts.

Until more aggressive, broad-reaching legislation is adopted, such as reducing the principal balance for struggling homeowners, there are laws to protect homeowner’s rights. The Law Office of R. Spencer Lauterbach specializes in providing legal redress for homeowners threatened by foreclosure of their home. Mr. Lauterbach is recognized as a preeminent attorney in foreclosure prevention law. Our firm has protected numerous homeowners from the danger of losing their homes. Our services include assisting with the complex modification process, foreclosure settlements and foreclosure defense litigation. Mr. Lauterbach’s expertise in real estate law and foreclosure defense has been able to save homeowners from losing their home to the bank and remain in their homes. If you are facing foreclosure or are interested in proceeding with a modification, please contact the Law Office of R. Spencer Lauterbach at (845) 639-1699. Learn about your rights and protections under the law.

Let the Law Firm of R. Spencer Lauterbach protect and defend your rights and mount the best defense to keeping your home—the most important financial asset!