Sunday, September 11, 2011

POST FORECLOSURE ARTICLE SUPPOSED TO MAKE YOU FEEL BETTER. DOES IT MAKE YOU FEEL BETTER?


Many survive foreclosure in style


By KIMBERLY MILLER
Palm Beach Post Staff Writer

Updated: 11:44 p.m. Saturday, Sept. 10, 2011

Posted: 9:22 p.m. Saturday, Sept. 10, 2011



Homeowners in foreclosure are increasingly plotting a graceful landing that leaves them not in dire straits following an eviction, but with the same or even better living standards than before they defaulted.

A study released this summer by a Federal Reserve Board discussion group found that homeowners post-foreclosure are bucking conventional wisdom that dictates they defray expenses by moving in with extended family members or into crowded apartments in poorer neighborhoods.

Instead, the report titled "The Post Foreclosure Experience of U.S. Households" found the majority of people following a foreclosure end up sharing a home with the same number of people in a similar, or the same, community.

About 60 percent live in a single-family home, albeit a rental, in a neighborhood where the education level of residents and median house values are comparable to what they experienced as homeowners. The study, which was based on consumer credit information, found another plus - work commutes decreased slightly after a foreclosure.

"In general, my clients are not left devastated by the foreclosure or short-sale process," said Boca Raton foreclosure defense attorney Marlyn Wiener. "Once they deal emotionally with the loss of their home, they make plans for the future."

Of course the warm and fuzzy post-foreclosure experience is not felt by everyone.

Former Loxahatchee resident Edward McManus was forced to move to Pennsylvania this year to live with his 37-year-old daughter, her husband and their two children following the loss of his 2,900-square-foot home to a final foreclosure judgment last year.

"It's not been pretty," the 62-year-old said.

But for others, such as Maria Streeter of Royal Palm Beach, post-foreclosure plans include staying in the same school attendance zone for her young daughter and experiencing only a small downsize. Instead of her mother-in-law living in the guest house on her acre of wooded property, she'll move in with the family in what Streeter expects will be a four-bedroom, two-and-a-half-bathroom home.

"I know tons of people going through this, and they are making plans for when they get kicked out of their homes," said Streeter, 46. "They are planning to rent, centering it around their kids' schools. They are not moving into one-bedroom apartments."
According to the study, the average household size increases insignificantly from 2.24 adults before a foreclosure to 2.27 adults after. Just 12 percent of people after a foreclosure move in with an adult 20 years their senior - likely a parent - compared to 5 percent in a control group of homeowners not in foreclosure.
Streeter and her husband bought their home in 2005 for $665,000. When he was laid off, their monthly income dropped from about $12,000 to $3,000. The home's total market value also plummeted to an estimated $284,778, according to the Palm Beach County Property Appraiser.
The bank filed for foreclosure in July 2009. The Streeters filed for bankruptcy to buy them some time. Maria Streeter expects they have at least until the beginning of next year before they'll have to move.
She said she has no concerns about how it will affect a future home purchase, although she knows the family will be in a rental for a while.
"My credit is pretty OK right now, and there are places where you can get a mortgage with a substantial down payment," she said. "We are definitely optimistic about the future."
And Streeter's experience reflects another aspect of the study, the length of time after a foreclosure that a person is forced to move.
Study authors Raven Molloy and Hui Shan said they were "fairly" surprised to find that only about half of borrowers whose mortgage enters foreclosure have moved two years later.
The report says the delay suggests many foreclosures are never completed because of loan workouts or the sale of the home. But it also notes the length of time it takes foreclosures to wend their way through the courts in states that require a judge to sign off on a home repossession.
The average Florida foreclosure spends 676 days - nearly two years - in the courts, according to a July report from the company RealtyTrac.
"There is a rationalization that if the home is upside down and you suspect you can delay the case for more than a year, people will use the time to save up some cash, pay off bills, and make a plan," said Dennis Donet, a Miami-based foreclosure defense attorney. "It's human nature that you can't change your lifestyle that much."
Wiener said she's had clients who have rented larger homes than the ones they lost to foreclosure. Others have parents who use retirement savings to buy homes for them to take advantage of the market's cheap pricing and low interest rates.
McManus, the former Loxahatchee resident, had no such support system. While he was able to move in with his daughter, she too is struggling financially, he said.
Contrary to the reserve board study, his life has changed drastically with a move to a new state and into a more crowded home. In Florida, he lived on more than an acre, had a pool, three bedrooms and a library. Now, he's thankful to have his own bedroom and that he was able to keep his three dogs.
"I sold everything I could sell and packed up the rest of it," said McManus, who got into financial trouble after a refinance and a divorce. "It seems like the whole world is collapsing."



I don't have much sympathy for most of these people - they bought more house than they could afford and now they are milking the system further by staying in foreclosed homes for years and not paying any payments. Take responsibility for your actions,.
Toni's uneducated blanket statement sounds bitter and resentful...
Laraine Calway-Jardane
11:43 PM, 9/10/2011
"Toni"'s uneducated blanket statement sounds bitter and resentful
Laraine Calway-Jardane
11:46 PM, 9/10/2011
Would "Toni" rather these same foreclosed houses stand empty,overgrown and rotting in the heat,becoming crime ridden fire hazards?
Laraine Calway-Jardane
11:49 PM, 9/10/2011
Sorry, I agree with Toni... try living in a Condo where your neighbor just bought a 2nd car, but yet he hasn't paid a dime to the bank or the association for almost 5 years!! I, along with fellow owners are paying our own bills and forced to pay his too. WE ALL saw our property values drop however we pay our bills. There is NO EXCUSE FOR THESE DEADBEATS, NONE!!! Stop living off your neighbors, pay or get out we don't owe you! This for those who can pay and don't!
Sick of Deadbeats & Attorney's
12:15 AM, 9/11/2011
Sorry, I agree with Toni... try living in a Condo where your neighbor just bought a 2nd car, but yet he hasn't paid a dime to the bank or the association for almost 5 years!! I, along with fellow owners are paying our own bills and forced to pay his too. WE ALL saw our property values drop however we pay our bills. There is NO EXCUSE FOR THESE DEADBEATS, NONE!!! Stop living off your neighbors, pay or get out we don't owe you! This for those who can pay and don't!
Sick of Deadbeats & Attorney's
12:15 AM, 9/11/2011
There is no reason for a homeowner in a condo to be allowed to stay in the unit for 5 years without paying assessments. Associations can foreclose on a unit owner pretty quickly and easily. Of course, that assumes the Association wants to take ownership of the unit subject to a mortgage. Further, why is the homeowner living in the condo the fault of attorneys???
MY CLIENTS MANAGE TO STAY IN THEIR HOMES, PAYMENT FREE, AN AVERAGE OF 5.3 YRS....


AND THERE ARE A FEW WHO ARE ALREADY HITTING THE "SEVENTH YEAR ITCH"...LOL...


THERE IS A LOT OF BUCKS ONE CAN PACK IN THAT TIME WITHOUT HAVING TO PAY A MORTGAGE...LOL......


AND PACK MY POCKET TOO WITH FEES...LOL...LOL...
PALM BEACH COUNTY ESQUIRE
1:40 AM, 9/11/2011
Boy! I don't think I have ever heard so much whining.....whaah! Whhhaah! I have to pay my bills and he don't! Whaah! Whhah. Sick of Deadbeats.... If you don't like it, don' live in a condo. If you are paying for him that your stupid fault. But, as sheep you don't know what else to do but whine and cry.... 
I meet criteria on both sides. Got one house current, only a few years left on the mortgage. Got another 2 years into foreclosure. Haven't paid credit cards in a year and my credit score is below a 600 for the first time in my history.


Doom and Gloom? Nope, just got a new car and the loan is 1% higher than what a high 700 score would have gotten me. Why? Well car dealers need to sell cars and banks need to finance in order for everyone to make money.


Don't let the banks fool you! It's ok
We'd like your thoughts on this story and appreciate your willingness to share them. At PalmBeachPost.com, we want to avoid comments that are obscene, hateful, racist or otherwise inappropriate. If you post offensive comments, we will delete them as soon as we can. If you see such comments, please report 

Enhanced by Zemanta

No comments:

Post a Comment

DO YOU NEED HELP TO AVOID FORECLOSURE?

If you would like to receive information on how you might avoid the foreclosure of your home, please e-mail me your name, address, and phone number. Someone from our office will be in touch right away to assist you. With Warm Regards, Kelly L. Hansen, HOMEOWNERS HELPING HOMEOWNERS, ctsmyhon@yahoo.com
Be happy, healthy and prosperous, but most of all, be blessed.
Kelly L. Hansen's photo.

Kelly L. Hansen


Jurisdictionary® just click on the link
Make Sure Your Attorney Is Working For You!
Kelly L. Hansen
HOMEOWNERS HELPING HOMEOWNERS FOUNDATION
33605 W. 88th Street
De Soto, KS 66018
913-269-0399 Phone
888-881-2349 Fax
MORTGAGE FRAUD VICTIMS
ARE YOU A VICTIM OF MORTGAGE FRAUD?


PLEASE DONATE TO HELP HOMEOWNERS!