Senators Lenders Houseowners And Foreclosures

February 19th, 2008

House owners feel they are alone battling foreclosures. Last Monday Senator Harry Reid together with six mortgage giants met house owners to find solutions to the foreclosure crisis, at Foreclosure Mobile Resource Center. At a modest estimate 400 persons crowded in Cashman Center hoping that the lenders will offer an olive branch of peace.

Edward Kaslag is one of the many facing foreclosures. If nothing is done then he will be under the open sky from the 27^th inst. Last year his credit ratings were so good that the realtor persuaded him to buy three properties in 2007 by taking the help of a lender the realtor suggested. Kaslag was made to understand that after close of escrow the home equity line of credit would be available. This would enable him to access to a line of credit for each of the mortgages. This would help him to keep up with the mortgages and reap profits eventually. But when the real estate market fell the whole reasoning became topsy-turvy. To further compound the situation Kasilag has since then lost his job. The workshop could do little to help him. Senator Harry Reid admitted that that only two out of five persons can get actual help.

Keija Guia was one such lucky person. Bankruptcy is threatening him and he does not where to turn to with his family. Within two months the house payment will double. It is a hopeless situation. They will have to give up the house where his two children were born. Countrywide representative sat down with Guia and poured over the papers. At the end of it there seems to be a light peeping through the end of the tunnel. It is necessary for the Guias to show proof of their earnings before the lender can freeze the interest rates. They will thus get a chance to continue to stay in the house that is their home.

Even if all cannot benefit at least some will – says Senator Reid. Something is better than nothing especially in Nevada where foreclosure numbers are at its highest.

The places worst affected by foreclosures are those where housing development activity had been the most. It indicates that there were many speculators who invested for quick profits. It is these elements that are going to be sifted out from the genuine families residing in homes and not mere houses of brick and mortar.