Superman, Save Our House! Top 5 Craziest Foreclosure Rescue Attempts

Published: August 2, 2010

Treasure hunting, demolition, forgery—even a telethon. Our picks for the top five most bizarre foreclosure rescue attempts.

Three years after the recession hit, Americans still are losing their homes to foreclosure in record numbers. Not even celebrities are immune. Wanting to do anything you can to avoid losing your home is only natural. There are a wealth of resources on HouseLogic to help you take action. Still, some homeowners have tried other, less-proven methods.

Here’s a countdown of some outlandish foreclosure rescue attempts:

5. I pimped my yard to PETA.
This past March, “Octomom” Nadya Suleman was reportedly approached by PETA when word got out about her mortgage woes. The offer: A billboard sign urging pet owners not to let their dog or cat become an “Octomom” in a campaign to raise awareness about controlling the pet population. Suleman ended up letting PETA advertise on her front yard for $5,000. In April, Suleman reached an agreement with the mortgage holder for a sixth-month extension to pay off the $450,000 debt.

4. God made me do it.
Earlier this month, a Montana man, Brent Arthur Wilson, was convicted for removing For Sale signs and forging ownership papers on a foreclosed home in a bizarre effort to keep a roof over his head. During his trial, Wilson claimed that “Yaweh,” or “the creator,” gave him the home. The jury was out for less than an hour before finding Wilson guilty. He now faces up to 30 years in prison and is scheduled to be sentenced August 19.

3. Buy my T-shirt, save my house.
To raise the $250,000 he needed to avoid foreclosure on his Port Washington, Wis., pad, former Saved by the Bell star Dustin Diamond sold T-shirts with his photo and a caption reading, “I paid $15 to save Screeech’s house.” (The extra “e” in “Screeech” was to get around copyright laws.) The down-on-his-luck comedian turned his money problems into a publicity ploy, telling his story on The Howard Stern Show and even scheduling an online telethon to raise more money. The appearance was canceled moments before it went on the air. Despite all that, it looks like Diamond is still going to lose his home. Wells Fargo started foreclosure proceedings in April.

2. If I can’t live here, no one can.
This past February, Ohio carpet business owner Terry Hoskins decided that he’d rather bulldoze his $350,000 house to the ground than let the bank have it. Hoskins also basically confirmed that he’d do the same to his carpet store if he had to. Thankfully, it didn’t come to that. Although Hoskins didn’t technically break any laws, the bank did hold a sheriff’s auction of his business property to pay off the $600,000 debt he owed.

1. Superman saved our house.
On a more positive note, a rare comic book (an Action Comic #1—the issue that introduced Superman to the world) was recently found in the basement of a couple facing foreclosure. Although it hasn’t been valued yet, Stephen Fishler, co-owner of ComicConnect.com, guarantees that the comic will bring in more than enough to pay off the mortgage at auction time. Other rare finds like this have been valued at more than $1 million.

The NATIONAL ASSOCIATION OF REALTORS® is dedicated to providing resources that help families facing foreclosure take every step they can to keep their home. To find out how to (legitimately) fight foreclosure, visit the HouseLogic Foreclosure Resource Guide.

Real House Foreclosures of New Jersey: How Teresa Giudice Should Save Her Home

Real House Foreclosures

of New Jersey:

How Teresa Giudice

Should Save

Her Home

Published: August 10, 2010

The New Jersey housewife may be in foreclosure on her dream home. But has she done everything she can to avoid it?


Before she was shilling for Garden State tanning chains Sizzle Tan, spokeswoman Teresa Giudice was a big-spending Real Housewife living comfortably in a North Jersey estate. So when she suddenly filed for bankruptcy in October, it sent the gossip press into a frenzy. Known for dropping $2,000 in ten minutes on shopping sprees, it was no big surprise that Giudice and her husband found themselves $11 million in the hole. Then rumors began to circulate that her multi-million dollar North Jersey mansion is in foreclosure. Whether or not Villa Giudice is on the block, there are steps to avoid it. If you ever find yourself in a similar position, be sure to consider these alternatives.


Contact the lender
When facing foreclosure, you have options. But one thing that isn’t optional is talking to your lender. The last thing a lender wants is to foreclose on a property, so start discussions with your lender about your choices. Hopefully Giudice was smart enough to pick up the phone and try to make arrangements to keep her Garden State Shangri-La.

Compromise
Lenders are often willing to work with you. That can mean modifying your loan, selling the property, or suspending payments temporarily to give you time to raise funds. In Teresa’s case, it could give her time to sell a boatload of her cookbooks.

Short sale
When your house is worth less than what you owe, you could opt for a short sale if your lender agrees. If that’s the case for the Guidices, it could work in their favor since, despite 12,000 square feet and a sea of marble and onyx, their estate clocks in at a mere $1.8 million.

Deed in lieu
While just as damaging to your credit score as foreclosure, you could ask your lender to cancel your mortgage in exchange for the deed to your house. And thanks to the new Home Affordable Foreclosure Alternatives Program (HAFA), you could get as much as $3,000 to help with relocation expenses. Which, for Teresa, equates to a solid 15 minutes at the local shopping mall.

If you’re facing foreclosure, be sure to explore our extensive foreclosure guide for more info. Or, if you’re in no financial trouble at all, you might consider placing a bid on everything from a 20-foot speed boat to a suit of armor in the Giudice bankruptcy auction.



Read more: http://www.houselogic.com/articles/real-house-foreclosures-new-jersey-how-teresa-giudice-should-save-her-home/#ixzz0wnZ7sRsD

Fight Foreclosure Through Redemption or Reinstatement

By: Richard Koreto

Published: July 27, 2010

Redemptions and reinstatements are among the rarest tactics to fight foreclosure. Your home must be in a state that supports them; even more important, you must have access to cash.


Your state may be trying to give you a break to avoid or turn back the clock on foreclosure with a couple of special provisions: the right of redemption, which can let you buy the home back from the person who bought it at foreclosure; and the right of reinstatement, which allows you to catch up on payments in default, including fees and penalties, and continue with the same loan.


Know your redemption rights
The right of redemption is not available in every state, and even among states that offer it, procedures vary greatly.

You may obtain a right of redemption only if your state offers a judicial foreclosure—that is, a foreclosure that proceeds through the courts.
The terms vary even among judicial foreclosure states. If you live in Kansas, you may have as long as a year to regain ownership through redemption. In Maine, you’ll have three months. But if you live in New York, you have no redemption rights at all, even though it is also a judicial foreclosure state.
Consult an attorney. Redemption laws are very complicated.
Be prepared to deal with your home’s new owners, as they may take possession of your home even if your right of redemption is still valid.
To check your state’s foreclosure laws, review this helpful guide.

Be prepared to pay
Unfortunately, redemption is only a last chance—not a magic bullet. If you haven’t heard of the right of redemption, it’s because they rarely happen, even in states that allow them. Why? You must come up with the price paid by whoever purchases your house plus associated fees and taxes. The same situation that led you to foreclosure probably will keep you from getting the cash or financing for redemption. So unless you just won the lottery or your rich uncle died and left you a bundle, you won’t get redemption.

Understand reinstatement
Reinstatement is different from redemption, although it’s easy to confuse the two. Reinstatement, available in many states, allows you stop the foreclosure process up to five days before the auction. To do this, you must:

Bring your loan up to date with all fees, expenses, and late charges.
Pay with “real money.” That is, come with a certified check, not a credit card.
Be willing to take a hit in your credit score. However, you keep your house and the same mortgage, and over time you can repair your score. And at this point, your credit score probably already has taken a hit.
Note the important distinction: in reinstatement, you only have to come up with what you missed; in redemption, you have to come up with the entire amount owed on the house.

Again, to find out if reinstatement is available for you, consult a lawyer and a foreclosure counselor. You should talk to your lender about whether it’s invoking acceleration—that is, declaring the entire amount due after several missed payments. Although, based on the terms of your loan, that may be the lender’s right—effectively disallowing a reinstatement—your bank may be willing to negotiate a reinstatement.

Even if you can scrape together money for a reinstatement by pawning some jewelry and borrowing cash from relatives, you can’t do that every month. If sufficient income looks like it will be a long-term problem, you might be better off saving your money for new housing and proceeding with a foreclosure, short sale, or deed in lieu of foreclosure.

Richard J. Koreto, a freelance writer, is the former editor of several professional financial magazines and the author of “Run It Like a Business,” a practice management book for financial planners. He and his wife own a pre-Civil War house in Rockland County, N.Y.

Fight Foreclosures in Your Community

If you think your neighbor's foreclosure doesn't impact you, think again. According to a Center for Responsible Lending report, foreclosures lower the property values of nearby homes by $7,200, on average.

Foreclosures can affect your community in other ways. Vacant homes can invite crime, and public services can suffer as revenue from property taxes dries up. All isn't lost, however. There are ways to fight foreclosures in your community.

Foreclosure activity is widespread

Foreclosures are hard for homeowners to ignore. In 2009, a record high 2.8 million properties received at least one foreclosure filing. At the end of the third quarter of 2009, 4.47% of mortgage loans were in the foreclosure process. The Center for Responsible Lending projects a total of 9 million foreclosures between 2009 and 2012.

The $7,200 in lost property values in 2009 could be the tip of the iceberg. The Center for Responsible Lending report said the figure didn't take into account the impact of short sales-when a lender agrees to the sale of a home for less than the outstanding mortgage-or the general decline in home values caused by a glut of inventory.

The problem could snowball. Declining home values could presage more foreclosures as homeowners walk away from underwater mortgages that total more than a house is worth. Even if you're current on a mortgage, reduced home equity due to declining property values weighs on consumer confidence. The result: Less consumer spending leading to more job losses leading to more homeowners facing the risk of foreclosure.

Foreclosed homes can languish

A foreclosure doesn't get resolved overnight. Foreclosure laws vary by state, but the process can drag out for months or even years. That means homes can sit unoccupied for long stretches, especially in neighborhoods experiencing multiple foreclosures. Falling property values and tight lending requirements, which make it tough for potential buyers to line up financing, add to the misery.

Blight can follow quickly. A homeowner struggling to keep up with mortgage payments likely sacrificed on routine maintenance. Bank-owned properties aren't receiving much upkeep in situations where the lender knows a quick sale is unlikely. The local government, scrimping to save, could become lax in enforcing code violations. The result can be a collection of foreclosed homes with sagging shutters and overgrown lawns that depresses residential sales activity indefinitely.

Foreclosures can invite crime

According to an Urban Institute report, when a home is vacant and it's clear no one is taking care of it, the property has a greater chance of being targeted by squatters, vandals, and thieves. That can lead to increased crime involving residents living near foreclosed properties.

Rising levels of crime, in turn, can prompt an exodus of residents from a neighborhood. The result can have a domino effect on the local economy. Crime could also be a red flag for potential buyers, indicating that the value of homes in the affected community will decline, according to the Urban Institute.

Local governments, HOAs bear brunt

Foreclosures mean lost revenue for local governments, which rely on property taxes collected from homeowners, not to mention the fees generated by homebuying and homeselling, to fund services. Less money comes in to public coffers as property values decline. To close budget gaps, municipalities can be forced to cut back on services that benefit all homeowners, from trash collection to street repair.

Homeowners and condo associations, private groups that provide services to residents, can suffer too. Foreclosed homes mean lost revenue in terms of dues and maintenance fees. Even remaining owners who aren't facing foreclosure but are struggling to meet loan obligations might sacrifice dues in favor of monthly mortgage payments. Typical HOA fees run about $420 a year, while condo fees can average $2,400 annually.

In some cases, the HOA or condo association might only be forced to skip spring flower planting. But in more serious situations, major repairs can be put in jeopardy. If an HOA doesn't have enough cash on hand, it might not be able to replace your hail-damaged roof, for instance, says Elizabeth Weintraub, author of "The Short Sale Savior."

Recourse for remaining homeowners

You might not be able to prevent foreclosures in your community, but you can take steps to minimize the impact. If there's a foreclosed property on your block that has an overgrown yard, mow it. Well-kept foreclosures don't scare away would-be buyers, says Weintraub.

If crime is your overriding concern, park your car in the driveway of a vacant home to give the impression that it's occupied. You also might want to consider starting a neighborhood watch to rally residents, engage local law enforcement, and discourage criminals.

Donna Fuscaldo has written about home finances for Dow Jones, the Wall Street Journal, and Fox Business News for more than a decade. Like many homeowners, her mortgage is precariously close to being underwater.