FORECLOSURE ON THE RISE

Warren, Michigan - As potential and current homeowners take advantage of low interest rates and search the real estate market for new purchases or refinancing options, home foreclosures are on a steady increase according to Lois Maljak, foreclosure specialist at Home Savers, Inc. in Warren, Michigan.

"Over the past 10 years, the foreclosure rate in America has reached epidemic proportions, and today four percent of all homes in America are currently either in foreclosure or threatened by foreclosure because owners are 60-days or more behind on their mortgage payments," says Maljak.

In Southeast Michigan, the number is increasingly on the rise and won't fall anytime soon according to Home Savers founder Ralph Roberts. "In Macomb County alone this year, there has been a 70 percent increase in the number of home foreclosures compared to last year's number during the same period," he says.

At this rate, Roberts estimates 5000 families in the Tri-County area will lose their homes to foreclosure in 2002, if they don't get help.

Additionally, Maljak states that 10-15 percent of homeowners in the country are barely able to make their monthly payments. "What we find our families struggling to make ends meet through credit cards and loans, and in turn, set themselves up as a prime candidate for foreclosure."

Roberts says the worst thing a person or family can do when faced with a foreclosure is do nothing. "The problem won't go away by itself, and doing nothing will almost always make the situation worse." He also warns of individuals and companies who are looking to cash in on the misfortunes of those facing foreclosures. "Be cautious woodworking with any company during this process. We encouraged to conduct a thorough pre-check of foreclosure service agencies and individuals with local police."

Maljak says options for people when facing foreclosure include:

1. Borrow money from family and friends.
2. Co-sign a loan with a family member.
3. Renegotiate a mortgage with the bank (forbearance agreement)
4. Sell your home for market value to save equity.
5. Sell your home for cash.
6. Refinancing with a mortgage company.
7. Negotiate a land contract repurchase.
8. Initiating a lease/option contract.
9. File for bankruptcy.
10. Do nothing.

Home Savers, Inc. is a Warren, Michigan - based agency specializing in providing counseling services to individuals facing home foreclosures. Home Savers is located at 30521 Shoenherr, Warren, MI 48088 -- ,(866) 351-1272 fax (586) 582-1689, Web site: www.Home-Savers.com, e-mail: lmaljak@Home-Savers.com





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