What is foreclosure?
Foreclosure is a legal action used by a mortgage company to recover any money from a customer when the customer does not pay his or her debt in accordance with the mortgage agreement. In other words, it's the legal remedy used by a mortgage company to assume ownership of a property when the required loan payments are not made. Foreclosure obliterates otherwise good credit.
How does foreclosure happen?
Although the actual process varies from state to state, foreclosure revolves around a homeowner's inability to keep up with monthly mortgage payments. The farther behind the homeowner gets, the closer to foreclosure the homeowner becomes.
Is anyone exempt from foreclosure?
No. Everyone with a mortgage is subject to foreclosure, should non-payment become an issue.
What to do....
Talk to a HUD approved housing counselor. Foreclosure counseling is available by accessing the website or calling the toll free number.
www.995hope.org or 1-888-995-HOPE
Further information on housing counseling and federal efforts to assist homeowners can be found at:
www.hud.gov/news/fhasecure.cfm
Upcoming Foreclosure Prevention Events
KCPT-TV will air a special half-hour on Foreclosure on Sunday, Feb. 22, at 5:30 p.m. (rebroadcast at 10:30 p.m.).
On Thursday, Feb. 26, 2-8 p.m., the Hope Now Alliance will hold a major event at Bartle Hall in Kansas City, Mo Loan servicers will contact area homeowners who are delinquent on their mortgages and provide an opportunity to meet face-to-face to discuss options. Foreclosure counselors, job counselors and other organizations will also be available to help families.