Reframing the foreclosure issue

Destin is not immune to the foreclosure crisis.

With so many vulnerable people out there, it is no wonder that there is a slew of fly-by-night agencies that boast solutions to mortgage and credit problems.

The fact is that there are no fast and easy solutions once someone finds themselves in a foreclosure situation — but there are options.

That is what the Destin-based non-profit Reframe Foundation, founded by Todd Vieyra, wants people to know.

The chain of events leading up to a foreclosure is unique to the people in the situation. However, most people buy a home with the same idea in mind.

“A buyer goes into real estate thinking their house is going to appreciate,” Courtney Vieyra, vice president of Reframe, says. “They never expect to owe more than the house is worth.”

Courtney explains that many people start out with the right home and the right loan that are all within their means.

But that comfort can quickly turn into a nightmare.

“The bank contacts the homeowner to entice them into refinancing or taking out an equity loan or both,” she says. “So suddenly, they owe more than the house is worth.”

That is only one scenario of how people get behind in their mortgage payments. Another pitfall appears when homeowners take out an adjustable rate mortgage and get stuck when something unforeseen happens.

Whatever the circumstances, when the reality sets in, people generally do not know where to start.

Trying to negotiate with the bank seems like the first logical thing to do, but it is usually fruitless.

“When the homeowner calls the bank, the bank does not hear anything positive,” Todd tells The Log.

He adds that homeowners fail to reach the right people, resulting in frustration on both ends.

Ultimately, when their own efforts fail, people begin looking online for alternatives to help them avoid foreclosure.

This is when people find the Reframe Foundation’s Web site at www.reframefoundation.org.

A place to turn to

At Reframe, volunteers realize that the first priority of the homeowner is trying to stay in their home and avoid foreclosure.

With this in mind, the foundation will refer the homeowner for free to a loss mitigation negotiator, an expert at renegotiating the terms of a home loan. The mitigators are able to get results because they know the right people to contact and have established relationships with the banks.

When mitigation works, the homeowner gets to keep the property and the bank draws up new loan documents that have been negotiated professionally. The homeowner pays the mitigator a fee for their services and a possible foreclosure has been prevented.

While this is the best case scenario, sometimes mitigation is not an option and foreclosure is inevitable.

When foreclosure is certain, the best thing that a homeowner can do is get educated about what options are available.

While the foundation’s primary mission is to help families that have children, they also offer a free e-book on their site outlining options and scams to avoid along the way.

The worst course of action when facing foreclosure is inaction. When homeowners fall behind on mortgage payments they often become paralyzed with fear.

“Just because you’re two months behind on your mortgage, they [the bank] won’t come take your house on month three,” Todd says.

He explains that Florida is a “judicial state,” which basically means that a bank can not seize a home until a judge OKs the order.
“People typically have 12 to 18 months from the time they can not pay to figure something else out,” he said.

Homeowners actually have some time to make arrangements for another place to live. But oftentimes it is a challenge for someone with bad credit to convince a landlord to rent to them.

Again Reframe is there to help.

Moving is not a cheap venture for someone who is already experiencing financial hardship. Having to produce the first month’s rent, a deposit and moving costs is no easy task.

Families with children can apply for a grant of up to $3,000 from Reframe to help cover moving costs and steps toward repairing credit.
Reframe feels a strong conviction to get help for these families.

Once primarily in the business of generating leads for mortgage loans, Todd had to change his focus after real estate took a dive in our area. People in the market now had a new need — help out of the mortgages that were ruining their lives.

Todd was inspired by the work of the W.K. Kellogg Foundation, whose mission is to improve the lives of children all over the world. Todd got the idea to combine this philosophy with his established network of loan experts and form the foundation to improve the lives of children on a smaller scale.

Why are foreclosures so rampant?

Ed Smith of RE/MAX Coastal Properties says the foreclosure crisis is fed by the weak economy, adjustable mortgage rates, and property taxes and insurance rates that continue to rise.

He also explains more specifically that in our area, the taxes are to blame for rising mortgage costs.

“The county budget has gone up dramatically,” he said. “There’s no justification for the rate increase in property taxes.”

Smith, who performs mitigation services for free in his spare time, warns against companies that claim to offer a magic solution to foreclosure.

“If they want money up front and claim they can stop a foreclosure, they are probably a fake,” he said.

With no clear signs of a turnaround in the market, the Reframe Foundation is helping people to make the best out of a bad situation.

Reframe invites those in all stages of a foreclosure to contact them for guidance.

Call toll-free 1-866-861-6309 or visit them on the Web at www.reframefoundation.org.