Indiana Communities Shell Out $85K for Each Foreclosure Home

by on States

The foreclosure crisis has not only resulted to Indiana homeowners losing their homes. It also cost most communities in terms of lowered home values. According to the housing advocate ACORN, communities spend around $85,000 for each foreclosed property.

In addition to the money lost by the communities, the group also calculated that the local government of Indiana loses around $33 million in taxes. Total loss for homeowners and lenders in the state is also computed at around $77 million.

With such money at stake, it can be expected that non-profit organizations and other housing advocacy groups are helping out these distressed homeowners so that they will be able to make informed decisions.

In fact, ACORN is sponsoring a foreclosure fair on August 23 (Saturday) for homeowners struggling with their mortgage debt. Foreclosure counselors will be giving out advice regarding the foreclosure process and if needed, act as mediator between the lender and the homeowner.

Efforts such as this should be taken advantage by distressed homeowners especially if they are serious about addressing their mortgage problems. Avoiding foreclosure will require an in depth look at your finances as well as discipline to make sure that you meet your new mortgage payment obligations.

If it is determined that you can no longer afford your mortgage, it will be wise to consider selling your home via a short sale. Increasing becoming popular, this foreclosure alternative will mean selling off the distressed property at an amount less than what the homeowner owes the mortgage lender. Of course, you will have to show proof that you really can not afford your mortgage any longer.

In any case, avoiding foreclosure is very important if you would like to enjoy the advantages of having a foreclosure-free credit history. Other options you might want to consider include deed in lieu of foreclosure and loan modification.