Home Foreclosures Continue to Challenge Homeowners, Boost Foreclosure Market

by on Foreclosure Crisis, Foreclosure Help

No homeowner out there likes to hear the word 'foreclosure'. Just the thought of someone out there losing the home they worked hard to get is enough to send chills down the spine of anyone who has a home, thinking “It could be me”. And while the foreclosure market adds great buying opportunities to the table, there aren’t many people out there are who rooting for it to swell and grow even larger.

Did you know that June is National Homeownership Month? It is, and this month, people like Brian Hudson, the CEO of the Pennsylvania Housing Finance Agency, are making it a point to help homeowners who are facing the challenges of foreclosure and losing their homes.

In a press release, Hudson expressed concern about the challenges the foreclosure market brings to the housing market as a whole – depressed prices and high inventory that keep people away from new-home construction, which adds considerably to the economy. Hudson also revealed that Pennsylvania recently received a $105 million grant from the federal government’s Emergency Homeowner Loan Program (EHLP) to help stave off foreclosure.

foreclosure a challenge

In light of this, what can homeowners do themselves to overcome foreclosure challenges? The first thing to do, says Hudson and other experts, is to begin communicating with your lender. Tell your loan servicer about your financial situation. The sooner you make them aware of the problem, the sooner you can start working toward a common solution. Remember: Lenders don’t really like foreclosure that much either, because it takes time and money. If they can help you, they will – provided you communicate often and early.

Entering into a loan modification program like EHLP and others is also highly recommended. These modify the terms of your loan and help you with making regular payments that you can afford.

Like Hudson says, this month is National Homeowners Month. With everyone taking action, the foreclosure market could finally shrink and give way to a healthier mainstream real estate market.