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Tips on avoiding the threat of foreclosure

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    Do you qualify for mortgage relief?

  • Duration 3:14
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There are new signs that more Americans may be facing a serious risk of foreclosure.

New data reveals that more than 22%.

Of all homeowners 22%.

May owe more on their mortgage than their house is worth.

Today's take charge consumer protection segment.

Is on how you can protect yourself so let's bring in -- Ellison real estate and business attorney thank you for joining us -- Thanks for having me so for folks watching who are underwater or close what action can they take.

Well -- really depend on the outcome that they want -- and I mean.

If you have a Fannie Mae or Freddie Mac alone there are plenty of alternatives you can either short sell your home.

You can do -- deed in lieu of foreclosure some of the banks are doing cash for keys where they'll actually pay people to move out of their homes.

Or you may be able to do a short refinance.

But that -- -- -- -- next question of the Obama administration has five different mortgage relief initiatives and -- None of them have lived up to the stated expectations of some of them been more successful than others the FHA short refi program though for example.

Was projected to help four million people in reality it has helped 880.

Why isn't -- a -- illustrate.

Yeah well there's a lot of reasons that they allowed a lot of reasons why to have -- work.

Tit for.

To be simple we can put them into buckets one -- the problem itself the problem itself.

-- any bombing as we -- this began as a sub prime crisis if you remember back when those some of those FHA or the hope for homeowner program's.

Began they would help sub prime borrowers now we have is a problem like you said with negative equity and unemployment.

The other reason is that these programs have been rolled out before they're really tweaked and were really behind the problem we've never really been in front of the problem.

-- have blocked it is the players themselves I mean we have.

Government banks than not for profits.

All of those groups are trying as hard as they can but the truth is they're really not coordinated with each other.

They too are behind not in front of the problem and they all have their own agendas they have some of them even have.

Incentives for this problem to continue perpetuating because they're human beings whose job now depends on the problem not being solved.

So for homeowners.

Which of these programs would you recommend it is they're just a lack of awareness of some.

Well you know that's the biggest problem is that as these programs roll out homeowners are still not getting the message.

In fact borrowers are giving messages and give them false expectations.

And a lot of time now that led to distrust so -- really not responding to anyone.

There's also a lack of incentive I mean when you can live for free for two or three years.

Why even take 20000 dollars.

But from a homeowner's perspective the big important thing to remember is that you don't lose money on your home unless you sell it so it seems that we know that with stocks we know -- -- stocks go down we hold until they buy.

We even know that with other consumables because -- remember your home is part consumable and part investment.

So when you buy a car you know that it's lost value but you don't expect for the the person who loaned the money for the car.

To make up for that to homeowners really need to look at the big -- for picture and we need some solutions that will take advantage of the low rates and really helped keep keep people in their homes.

All right -- -- -- thank you so much for joining us.

Sure had a great day.

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