New From the St. Louis Beacon – Anatomy of a foreclosure: (Part 3)

September 26, 2008

Anatomy of a foreclosure: Life in the aftermath…. now what? (Part 3)     

By Mary Delach Leonard, St. Louis Beacon staff    

Part 3 of 3
The collapse of some of the nation’s oldest financial institutions started on Main Street America with hundreds and thousands of homeowners such as 56-year-old Maureen McKenzie of Kirkwood who in May lost to foreclosure the small ranch house that had been in her family since it was built after World War II. How could this happen? The answer is … complicated. The Beacon will unravel the story of how Maureen McKenzie of Kirkwood, Mo., lost her 900 square feet of the American Dream. Read parts one and two.
 
Nearly five months have passed since Maureen McKenzie moved out of her little white frame ranch on Barry Court in Kirkwood, and she is still trying to find her way through life-after-foreclosure.

The house that was in her family for more than half a century now sits empty with a For Sale sign out front, while McKenzie has just moved again into her second apartment since the foreclosure. Looking back, McKenzie says, she always held out hope that her circumstances would improve and she would be able to refinance into a better mortgage.

“Maybe I was just being stubborn,” she said.

Legal resources for Missouri and Illinois residents

August 25, 2008

Since St. Louis Beacon ran this article last week about the legal process in Missouri foreclosures, I wanted to expand on those resources and also provide some information about the process in Illinois.

In Illinois

Because the foreclosure process has to go through the court system, Illinois foreclosures usually take about a year. Land of Lincoln Legal Services recommended I look at the guide on www.illinoislegalaid.org. It explains the Illinois foreclosure process very clearly. You can read it here. There are links to some non-profit legal organizations at the bottom of the page, too.

This is another guide published by Illinois Legal Aid that gives more detailed answers to those being sued for mortgage foreclosure.

In Missouri:

After Texas, Missouri has the fastest foreclosure process in the United States. I’ve read articles that say it happens in 60 days and others that say 21. To clarify, I spoke with Dan Claggett of Legal Services of Eastern Missouri. Here’s a breakdown of what he told me:

When a homeowner misses 3 mortgage payments, the lender sends them a notice of default with a foreclosure date listed.

The lender has to publish the sale of the home at least 20 times before the sale date. So if a lender wants to move rapidly, they could publish a notice per day for 20 days leading up to the sale and the home could be sold on that 21st day. Bare minimum, the process can occur in 21 days from the time the lender mails the foreclosure notice.

What is more troubling is that the lender only has to send that one letter, and they need only drop it in the mail 20 days before the sale date. That doesn’t mean the homeowner receives it before then. If the mail is delayed for any reason, the borrower could be looking at a sale date within a week or two of when they get that letter.

Claggett adds that it becomes much harder to work out a plan with the lender if they’ve already mailed the foreclosure notice due to the money they’ve spent on legal counsel and publishing.

Here is a 2 minute video of Dan Claggett discussing the Missouri foreclosure process on KETC’s Facing the Mortgage Crisis live special:

Find more legal resources at the St. Louis Fed’s Foreclosure Resource Center.

When all else fails and foreclosure looms, bankruptcy attorneys say give them a chance

July 24, 2008

Originally published by The St. Louis Beacon on Wednesday, July 23, 2008:

By Mary Delach Leonard, Beacon staff

Which is worse: Foreclosure or bankruptcy?
 
Sometimes, the rock can be better than the hard place, insist bankruptcy lawyers. It all depends on an individual’s situation. And, they add, financially distressed consumers unable to negotiate a loan modification with their lenders might not think about bankruptcy as an option.

After reading the Beacon’s coverage of the mortgage crisis, attorney Rory Ellinger of Ellinger and Associates of O’Fallon, Mo., suggested a story about how Chapter 13 bankruptcy can be used to stop a foreclosure.

Frequently Asked Mortgage Questions

July 22, 2008

KETC’s Facing the Mortgage Crisis addresses some of the most frequently asked questions about mortgages and foreclosures. Click on the individual questions below for video answers:

• If you can no longer pay your adjustable rate mortgage, is it possible to call your lender and change your payments?
• What is the ripple effect on our community?
• Is this a bad time to be taking out an equity line of credit?
• How many people have been getting in trouble with “easy credit” scams?
• How can real estate taxes affect the ownership of a home?
• How is the mortgage crisis different in urban, rural and suburban areas of the region?
• Is a reverse mortgage a good idea for senior citizens?
• Are there any ways to adjust terms of a loan for a person that is employed at a new job that pays considerably less than their previous one?
• Is there a way to get my home back after foreclosure?
• When will the government be more willing to help people who are losing their homes?
• How does the mortgage situation ripple out and affect businesses?
• How long should we wait before we sell our houses again?
• Is it a good time for first-time homebuyers to purchase a house?
• Do you need to wait until you’re delinquent on a mortgage payment to get help?
• What resources are available to those who do not have extra money to spend on counseling?
• What are the options for people in the military who must move and sell their home?
• How long do you have to live in your home before you can get the help you need?
• Is there help when you just realize that you’re heading for financial trouble?
• What happens after you receive the first notice of default?
• Is this mortgage situation pushing people into the city or causing them to move further out of the city?
• Is the over-building in the city a good market to get into?
• Why should tax dollars go towards helping this cause?
• Do law enforcement agencies keep in touch with the organizations that are trying to fight the mortgage crisis?
• Is a moratorium a good idea?
• With the mortgage situation, is it ironic or does it stand to reason that St. Louis is named the 8th best market for real estate in the country?

Video – Facing the Mortgage Crisis: Part IV

July 17, 2008

On July 15, Ruth Ezell hosted Facing the Mortgage Crisis, a live, call-in show that discussed mortgage and foreclosure issues faced by St. Louis area homeowners. The panel of mortgage experts included: Malik Ahmed, Better Family Life; Dan Claggett, Legal Services of Eastern Missouri; Linda Ingram, Beyond Housing; Eric Madkins, Urban League.

Video – Facing the Mortgage Crisis: Part III

July 17, 2008

On July 15, Ruth Ezell hosted Facing the Mortgage Crisis, a live, call-in show that discussed mortgage and foreclosure issues faced by St. Louis area homeowners. The panel of mortgage experts included: Malik Ahmed, Better Family Life; Dan Claggett, Legal Services of Eastern Missouri; Linda Ingram, Beyond Housing; Eric Madkins, Urban League.

Video – Facing the Mortgage Crisis: Part II

July 17, 2008

On July 15, Ruth Ezell hosted Facing the Mortgage Crisis, a live, call-in show that discussed mortgage and foreclosure issues faced by St. Louis area homeowners. The panel of mortgage experts included: Malik Ahmed, Better Family Life; Dan Claggett, Legal Services of Eastern Missouri; Linda Ingram, Beyond Housing; Eric Madkins, Urban League.

Video – Facing the Mortgage Crisis: Part I

July 17, 2008

On July 15, 2008, KETC’s Ruth Ezell hosted Facing the Mortgage Crisis, a live, call-in show that discussed mortgage and foreclosure issues faced by St. Louis area homeowners. The panel of mortgage experts included: Malik Ahmed, Better Family Life; Dan Claggett, Legal Services of Eastern Missouri; Linda Ingram, Beyond Housing; Eric Madkins, Urban League.

Twitter Feed from July 15 Program

July 16, 2008

Facing the Mortgage Crisis aired last night on KETC/Channel 9. We were “twittering” throughout the program with updates of the show. Not twittering along? You too can follow Channel 9 on Twitter at: www.twitter.com/ketc

Here is what you missed.

July 15, 2008 from 7:00 p.m.- 8:00 p.m.

ketc It’s almost twitter time. We’re live in the studio for Facing the Mortgage Crisis. Follow our program that starts in 15 minutes.

ketc Facing the Mortgage Crisis is live now on Channel 9

ketc Ruth Ezell looks back at the cause for the mortgage crisis. There’s not just one cause, but several factors that have caused the crisis.

ketc Our panel of experts will help explain how the St. Louis area is affected by home foreclosures.

ketc Tonight’s panel of mortgage experts includes: Eric Madkins, Urban League; Linda Ingram, Beyond Housing; Malik Ahmed; Better Family Life; Dan Claggett, Legal Services of Eastern Missouri.

ketc Ruth Ezell asks: Is there a typical type of person that’s in trouble with their mortgage?

ketc Eric Madkins explains that the mortgage crisis affects all types of people.

ketc Dan Claggett explains that the foreclosure process in Missouri is quite different from that in Illinois.

ketc Foreclosure in Illinois: A minimum of 8 to 9 months

ketc Malik Ahmed explains four common mistakes homeowners make: 1. They don’t read the important documents. 2. They don’t consult the right people.

ketc 3. They don’t respond to information the lender is telling them. 4. They don’t seek out help that’s available.

ketc Linda Ingram explains the process of foreclosure which begins with a client in-take form.

ketc Linda Ingram says that if you’ve received a letter regarding your mortgage from an attorney, you must act. The situation is serious.

ketc Eric Madkins says that the Urban League offers mortgage resources for area families.

ketc Ruth explains three different types of foreclosure rescue scams:

ketc 1. Lease-back or repurchase scams 2. Refinance Fraud 3. Bankruptcy Schemes

ketc Malik Ahmed says that you need to find a credible resource to avoid mortgage scams.

ketc Coming up next: questions from the audience

ketc Elliot asks: If you have an adjustable rate and your payment goes up to where you can’t pay it, can you work with your lender?

ketc Linda Ingram says that lenders will work with you and your adjustable rate. All you have to do is ask them for help.

ketc Maureen from Kirkwood recently lost her house to foreclosure. She wants to know if there is any hope of getting her home back.

ketc Dan Claggett replies that the options for Maureen are limited but there might be a way to get her home back.

ketc Malik Ahmed says that there have been home equity scams happening nationwide.

ketc Linda Ingram recommends not to add any other debt onto your home. Leave debt for car loans and credit cards, for example, separate.

ketc Meredith asks: Is there a difference in the crisis between the urban and rural areas of St. Louis?

ketc Malik replies that the urban area has been hit harder than the suburbs because of a higher population of low-income families.

ketc Terry asks: What are the ways that other non-profit agencies can help with the crisis?

ketc Malik replies that all organizations and resources that would like to help with the crisis are encouraged to work together.

ketc Betty asks: Are reverse mortgages a good idea for seniors?

ketc Eric Madkins recommends for seniors to seek help from credible mortgage counselors.

ketc Malik Ahmed says that seniors are the most vulnerable for mortgage scams.

ketc Don’t forget: We’re continuing this conversation on ketc.org after the show.

ketc Thanks for twittering along tonight.

Have mortgage questions? Email them to mortgage@ketc.org.

Follow Channel 9 on Twitter: www.twitter.com/ketc