FORECLOSURE » Prevent Foreclosures

Some predicted the number of homes foreclosed upon would be significantly reduced by a government-imposed foreclosure freeze meant to stop major mortgage processors from filing invalid documents–and they were right. According to a report released on Thursday by RealtyTrac, bank repossessions shrank 8.7 percent in October because foreclosure processes cannot be completed.

What Is the Foreclosure Freeze?

Photo by Jeff Turner (Repres)

By Casey Bond

Photo by stevendepolo

A recent study conducted by the Pew Research Center revealed that 36 percent of homeowners feel it’s okay to walk away from a mortgage loan, depending on the situation. In many cases, the present circumstance may be the result of something beyond the homeowner’s control, including job loss or an underwater mortgage.

Suffering through a foreclosure is overwhelming for anyone, but when you’re a celebrity dealing with this stressful situation in the spotlight, it becomes that much more difficult. You’d think the added pressure would encourage celebrities to make sure all of their business was on the up and up, but it seems many still struggle just like every day homeowners.

In fact, some of the biggest foreclosures seen have been at the hands of the biggest names in the business. To prove it, let’s take a look at 10 of the biggest celebrity foreclosures we’ve seen in recent times.

With questionable foreclosure filings at the center of media attention, it’s no surprise that a record number of homeowners lost their homes in the third quarter. According to a report released by RealtyTrac on Thursday, bank repossessions and foreclosure auctions in the months of July, August and September rose to 102,134 and 372,445, respectively, leading some to believe that invalid documentation could be contributing to the significant loss.

Total Foreclosures Increase Significantly

While a foreclosure freeze has been suggested to ensure invalid filings have not been taken by large mortgage processors, the Obama administration refuses to support this action. As told by Federal Housing Administration Commissioner, David Stevens, taking such a major step simply is not “prudent.”

Invalid Foreclosures a Big Issue

Challenging invalid foreclosure attempts may become more difficult soon if President Barack Obama signs a bill that was recently passed in Senate. The bill, which would require courts to accept foreclosure paperwork without notarization, is causing homeowner advocates to speak out.

The Interstate Recognition of Notarizations Act

If your mortgage loan is behind and you are unemployed, you can apply for a no-interest loan from the government that will help to pay for your mortgage and cover your arrears. The loan, which will pay up to $50,000 to troubled borrowers, falls under what is known as the Emergency Homeowners Loan Program.

What is the Emergency Homeowners Loan Program?

Fiserv Predicts Home Prices to Drop by 11%

While home prices have managed to drop considerably over the past year, they are expected to drop even further (it’s unknown at this point if this drop will affect mortgage rates). According to the financial and analysis firm, Fiserv, the overall national median price is forecast to drop by as much as 11.3 percent by June 30, 2010 in 342 out of 381 markets.

Fiserv has been predicting lowered home prices for several years; however, the firm had previously underestimated the rapid decline. Now, economists believe that the firm’s predictions are on the mark. According to Moody’s Economist.com’s chief economist, Mark Zandi, there are definitely more declines to be expected. In fact, in some high-foreclosure markets like Orlando, Florida, the prices are expected to drop 27 percent.

Homes lost to foreclosure make up 26 percent of the market and they’re offering big discounts, according to a new report released on Thursday morning. In the report, issued by RealtyTrac, most homes in foreclosure are selling for about 26 percent less than non-foreclosed homes.

Looking to Sell Fast