Pennsylvania Foreclosures - Pennsylvania Facing New Foreclosure Attack

Pennsylvania Facing New Foreclosure Attack

February 27th, 2008

In 2008 about 25,000 house owners will be exposed to the risk of foreclosures as interest rates are scheduled to reset to higher notches. The report has been released by banking regulators who are urging the victims to seek help without wasting time. Those holding adjustable rate mortgages should contact their lenders to find out if the rates are going to rise or not. If so they should find out how much will be the increase.

The lenders say that they are willing to work out viable solutions but in most of the cases the borrowers do not contact them. They avoid the lenders because of a feeling of lack of trust. There is a preconceived idea rooted in them that the banks have only one goal – to take over the house. The borrowers do not realize that the lenders are keen to avoid foreclosures as far as possible. They do not want to be weighed down by a bunch of units that hardly sell for a proper price in the present real estate market.

The house owners can contact the consumer service departments of the hands. The State too has various programmes to help the distressed foreclosure victims – Homeowner’s Emergency Mortgage Assistance Program, Refinance to an Affordable Loan and the Homeowner Equity Recover Opportunity.

Last year in Pennsylvania there were 34,089 foreclosure postings in 2007. This meant one out of 159 houses of the 5.25 million in the state was facing foreclosure The number came down from 38,333 recorded in 2006 but it was well above the 2005 figure of 28,650. Philadelphia was worst affected with 0.86% with counties of Lawrence, Dauphin, Westmoreland and Beaver following behind.

This year the apprehension is that more heads will roll as interest rates are scheduled to rise. Refinancing will be difficult as the real estate market is slumping and there is a global credit squeeze. All this is a fall out from the sub-prime crisis – it is argued. Banks are taking on a more conservative approach to lending money for buying houses – thus it will not be easy to get loans.

Earlier this year the government together with six jumbo lenders of the country launched Project Lifeline that will give more time to harassed house owners to sort out foreclosure threats. Project Lifeline is an extension of the Hope Now scheme. Interest rates have also been temporarily frozen.