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Besides foreclosure, what else?

Just heard on the news that the U.S. Housing Crisis Now Officially Worse Than Great Depression.

I am (was) trying to put together a non-profit to help people find empowerment in themselves in recovering their income in times of financial disaster. A part of this effort is to help people understand mortgage loans (as requested by the supporting/partnering bank- First Central Bank). The problem is that now I'm finding contradictions in the principle.

Three days ago I spoke to a real estate agent about roof damage caused by the same storm front that cause the Joplin tornado. The conversation included talk about housing deappreciation. While in conversation, the agent confessed to me that earlier this month she closed her first house of the year, and that the banks are not lending easily (not without a substantial down payment).

With banks not cooperating (lending wise), deappreciation running out of control, and jobloss a major issue , refinancing is not an option for many people in crisis.

I really need to come to a solution acceptable to the mortgage banks as well as to their customers.

Question- How can I find a solution for avoiding foreclosure, when foreclosure seems the only logical solution for many people stuck upsidedown in a house they cannot afford?

Thanks in advance
(anon because I am not trying to be lofty)

Answer Question

Asked by Anonymous at 4:14 PM on Jun. 16, 2011 in Money & Work

Answers (1)
  • also answering anon, because it's our personal money situation.

    We've been trying to sell our home because we're moving for a job...we can't afford to pay our mortgage here, and rent over there at the same time...

    ...anyway, we just made the decision to rent our home instead of sell because we're running out of time before we have to go...AND because the selling market is terrible. We did have an offer that fell through on the buyer's side, and it was such a money loss deal (not upside-down mortgage, but compared to how much we've put into the place to fix it up).

    So far, it looks like the rental market is WAAAAAy easier than the seller market. Maybe it's the right answer for people you'll be helping too.

    Answer by Anonymous at 4:31 PM on Jun. 16, 2011

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