Foreclosure Filings Increased Record Amount in 2008

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RealtyTrac, a firm that tracks real estate foreclosures, today issued figures that show that foreclosure filings (default notices, auction sale notices and bank repossessions) —were reported on 2.33 million U.S. properties in 2008, an depressing 81 percent increase from 2007 and a whopping 225 percent increase from 2006.

California had the 523,624 foreclosure filings, the most of any state, which amounted to a nearly 110 percent increase from 2007. Florida had the second most with 385,309 foreclosure filings, while Arizona had the third most with 116,911 filings.

Not all filings result in an actual foreclosure but, as this CNN article reports, more than 860,000 families in the U.S. did lose their home due to foreclosure last year. For these folks, especially those who own more on their mortgage than the home is worth, should consult with an attorney as bankruptcy may loom loom in their future.

For those that have not been foreclosed, but have received any sort of default notice or are unable to keep up with their mortgage payments, the absolute worst thing to do is sit idle and do nothing. Mortgage lenders don't want you to go into foreclosure, as they are in the business of lending money and do not want your house sitting on their books.

My advice is to seek out help. The sooner the better. Call your mortgage company and tell them your situation, explaining any financial hardship that has made it difficult to keep up with payments. They might be able to do a loan modification, whereby they readjust your mortgage to fit with your budget.

Or, contact Help Now, which is an alliance between HUD and the mortgage industry that provides free foreclosure prevention assistance. Their website is HopeNow.com to learn more or speak with a live counseler by calling 888-995-HOPE.

Hope Now is a great organization that will help you negiotate a loan modification, or work out a repayment plan to help you get current on missed payments.

I'd like to reiterate that the worst action you can take is inaction. If you received a foreclosure filing, you're not alone (2.3 million properties are in the same shoes as you!) and you shouldn't feel ashamed of asking for help. Contact your lender or Hope Now.

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