Pine Meadows, formerly known as Hilton Estates Mobile Home Park, has about 400 mobile home lots. Of the total number of residents, about half rents the area for $600 a month; the rest have their own mobile homes and just lease their space for $314 a month. Included in the payments are water, trash service, and sewer.

The mobile home park faces foreclosure because according to WBCMT, the lien holder, the owners went into default on a $9.2 million loan. This loan originated from Wachovia Bank Commercial Mortgage Trust in 2005, and the trustee was Wells Fargo Bank, N.A.

However, the owners and property manager of the Pine Meadows Community have not received any notices of foreclosure, contrary to what the lender has said. The lawyer of the mobile community park has stated that he only received the first set of foreclosure documents last Thursday morning.

Due to the uncertainties about the pending foreclosure auction, the residents of the mobile home park got really worried, not knowing what will happen after foreclosure. But they seem to be sure that they will fight for their homes.

Foreclosure attorney says that if ever WBCMT becomes successful in its purchase of the trailer park on the scheduled public auction, it has no plans of evicting anyone from the area for as long as these residents are current on their rent. It only changes when an unusual sale mechanism occurs.

The foreclosure has not stated any other financial details besides the amount of the original loan. Whatever happens, Pine Meadows’ residents must stand-up for their properties and their right to rent. Hopefully, everybody gets to stay current on their rent payments so they will not have to undergo a more complicated legal action, and they will not lose their homes.

Tenants have rights and they can actually fight eviction even after foreclosure; they are just not well-informed. In fact, according to housing advocates, tenants do not even know that they have a right to a judicial hearing before getting evicted.

With the growing number of foreclosures in Boston, students see the need to help evicted tenants. Law students volunteer at Boston Housing Court, write emails and visit schools, and recruit volunteers and coordinators from several colleges. Those who take part in the advocacy are the following: Harvard Law, Boston University, Boston College, Northeastern University, New England School of Law, Tufts University, Simmons College, and Suffolk University.

Law students believe that it is unfair to evict tenants now that the economy is quite unstable. They hope that by educating tenants on fighting eviction will persuade lenders to permit tenants to stay in their homes while finding new owners, to maintain the house themselves, or to sell to former owners or tenants.

One distressed homeowner intends to join the students’ activity because she has been trying to survive in her single-bedroom home with a $950 per month rental. She has declined a $2,000 offer from Fannie Mae and she is now waiting for the lender to take it to the court. She is fighting for her right to pay rent and she recognizes the initiatives of the students as an inspiration to older people.

A great amount of student participation can make a difference. By simply educating tenants of their rights to their homes even after foreclosure can help minimize eviction.

Here are the pieces of advice experts share in renting your home:

• Get the similar feeling of selling your home as you decide on renting out your home.
• Screen all your tenants. Do not assume you will get the best tenants. There are some tenants who are scammers. For example, after giving a deposit, they will not pay rent anymore since they know you do not know how to evict them.
• Familiarize yourself with the law. Several laws apply to tenants’ protection and these laws vary among states. Therefore, you must base your rental agreements to the rules of the state where your home lies. Such laws can be found on the website of the Landlord Protection Agency.
• Set the right price for your rental fee. You can consult real estate agents in determining the best price possible. They can show you around to other homes, which are your competition.
• Leave your home furnished so you could charge greater rental fee.
• Make sure you make the right collections: sufficient deposit, pet deposit, additional charges for qualified reasons.
• You must repair damages or remove hazards from your home. However, a request of the tenant for any upgrades is not a requirement. You can allow upgrades that the tenant is willing to pay for.

Renting saves a house facing foreclosure, whenever selling is not considered by a distressed homeowner. It may be a bit of a risky process but for as long as it is well-researched and well-planned, then it can be a successful endeavor.

One can argue that homeowners and lenders have yet to be aware of their options under the said program. However, Hope for Homeowners itself is insufficient to help those with troubled mortgages. The program is limited since eligibility is confined only to those with mortgages taken out before January 1 of this year and to homeowners who are paying a home loan equivalent to 30 percent or more of their income.

Aside from this, it does not cover those who deliberately miss payments, those who provide false information to be eligible for the first mortgage, and those with second homes.

The so-called federal assistance is also not beneficial for bankers or lenders. 30-year mortgages insured by the Federal Housing Administration must be renegotiated into by bankers; while lenders, who should set new loans at 90 percent of the present property value appraisal, are taking losses. Also, prepayment penalties and subordinate liens are not allowed.

Added to these discouraging limitations, the program doesn’t allow for easy modification. Speculative investors who own already vacant properties, economic problems and repackaged mortgages bought by other parties are also not helping to make viable deals.

In this present state where brokers and bankers refrain from taking credit risks and interest rates have not been exactly appealing, the only solution for homeowners facing housing foreclosure or troubled mortgages is a revitalized market. It seems that current conditions are clamoring for an alternative plan.

For instance, the refinancing program “Save the Dream” of Michigan Governor Jennifer Granholm was launched last April to provide assistance to troubled borrowers. Out of the 135 calls received, only four were qualified.

Such dismal statistics is certainly frustrating for both homeowners and housing advocates. Many are crossing their fingers for Hope for Homeowners, the latest government offering to meet the public’s expectations.

Another federal program, FHA Secure from the US Department of Housing and Urban Development, was considered to be a failure since most of the applicants did not qualify. The requirements were simply too strict and too specific, almost automatically disqualifying homeowners who require assistance the most.

Two reasons can be cited for the disqualification of majority of the homeowners. One is having no equity left on their properties and another is missing too many mortgage payments. In most cases, zero or even negative equity means owing more in mortgage debt than what the property is currently valued at.

For the government programs to work, housing counselors and mortgage brokers believe that lenders require more assistance in the form of staff in order to process more work out plans. The good news is that most lenders have finally looked at the problem at a different light and have become more willing to negotiate.

Aside from this, it is also vital that mortgage guidelines become more reasonable, allowing more time for homeowners to work out their mortgage payment problems especially if they have good credit scores.

In some states, new laws that will give troubled borrowers as much as 90 days to negotiate with their lenders before a foreclosure case can be filed, have been approved.

Unfortunately, the federal government has been working over time – creating and approving mortgage rescue programs left and right – in order to address the problems in the housing industry. It is possible that the government has underestimated the foreclosure crisis and did not expect them to be quite as serious.

Some experts believe that this underestimation could have been the reason why the nation is having trouble keeping up with the foreclosure crisis. In addition, there are also certain factors that have made it nearly impossible to save the housing industry. They include:

For housing and consumer advocates, the government responses were also narrow and slow. Last July, a $300 million housing rescue program was launched in order to help at most 400,000 distressed homeowners. Obviously, the amount is not in the same league as the $700 billion bailout plan recently approved to help troubled financial investment corporations.

• Plummeting home prices especially in states like California, Nevada and Florida.
• Speculative buyers and investors who are walking away after their investments in real estate properties fell through.
• High unemployment rate which is the primary reason why many homeowners were not able to meet their mortgage obligations. According to Freddie Mac, over 45 percent of all mortgage delinquencies cited job loss or unemployment as the cause.

The huge difference has already outraged a lot of politicians and resulted to a promising settlement with Bank of America, amounting to $8 billion earlier this month. The said settlement will take effect on December 1 and is designed to provide assistance to 400,000 Countrywide troubled borrowers in 11 states.

In addition, there was also 44 percent increase in year-over-year foreclosure activity, with one filing for every 178 homes. Fort Lauderdale topped the list of metropolitan cities with the highest foreclosures with 18,316 filings. This figure is 17.7 percent more last August.

On the other hand, Miami placed at the 13th spot with 14,050 foreclosure filings. It was a 7.93 percent drop from the previous quarter but a 37.3 percent increase from last year. Palm Beach came in at the 19th spot with 7,515 filings, up by 5.25 percent compared to the second quarter and 65.3 percent from the third quarter of last year.

The good news is – national foreclosure rate for September declined by about 12 percent compared to August, with one filing for every 475 homes. Comparing it to last year, the foreclosure activity across the nation actually jumped by 21 percent.

According to the online marketer, the 12 percent decline can be attributed to the numerous state laws which were passed to slow down the foreclosure crisis. There were states that required lenders to notify the troubled borrowers several times before proceeding with a foreclosure filing while there were states that extended the number of months a distressed homeowner can negotiate with their lenders.

Last October 3, a $700 billion bailout program was approved to address the crisis in the financial market, which is tied to the housing industry. Despite this, experts and analysts are still worried that the collapse in the finance sector will result to more homes entering foreclosure.

In order to avoid being in such an unfortunate situation, you should make sure that you are planning and maintaining your budget properly.

For starters, you should try to figure out and keep track of all the things you spend your money on. To make it simpler for you to do this, you should go through your credit card receipts and checkbook entries. This will somehow give you a picture of how you are spending your money. Try to categorize the items into groups such as personal, housing, education, etc.

In order to make sure that you stay within your budget, list down all the projected expenses you have in a year. Be sure to include gifts, insurances, medical bills and other possible expenses. After coming up with the total amount, divide it by twelve and you will now come up with your monthly expenses.

One you have this amount, you need to look if your monthly income is enough to accommodate such monthly expenses. If needed, adjust your expenses so that it will equal your monthly income. You can accomplish this by determining whether items are needs or wants. Obviously, you must prioritize your needs.

One of the reasons why many homeowners go above their budget and find themselves with huge debts they could not pay is the lack of emergency fund. Without any savings, you will surely end up using your credit card or the money you set aside for other things, which leaves you with a deficit.

If you manage your budget properly and save wisely, you can be prepared for any emergencies and you will surely be protected against foreclosure.

These laws include the Deceptive Consumer Sales Act, Mortgage Rescue Protection Fraud Act and the Credit Services Organization Act.

Based on its investigation, the Office of the Attorney General discovered how a foreclosure consultant convinced a distressed homeowner to pay a certain amount in upfront fees to stop foreclosure immediately. After the homeowner agreed to do so, a contract was signed. The said contract did not contain statements which are required by Indiana law to protect consumer rights.

When the foreclosure proceeded, the troubled homeowner decided to terminate the contract and ask the foreclosure consultant for a refund considering that the latter was not able to fulfill the services promised. Unfortunately, the foreclosure consultant did not see this as a valid reason and refused to refund the upfront fee.

For the state, this is a clear violation of consumer rights. Aside from asking the court for an injunction, it also seeks penalties amounting to $5,500 per violation as well as refund of the upfront fee.

It is certainly disheartening to know that there are still many individuals who are taking advantage of these unfortunate homeowners. Nationwide, foreclosure – related scams are on the rise as the problems in the housing and credit industries deepen.

Government officials and housing advocates have repeatedly warned troubled borrowers to stay away from suspicious individuals, offering them quick and simple answers to their mortgage problems. But due to desperation and lack of knowledge, many homeowners still fall victim to these fraudulent activities.

Although a short sale will allow a distressed homeowner to avoid foreclosure, there is still considerable damage on the credit. In order for you to determine if you can live with them, here are the things you should expect from a short sale.

Credit Score

For many experts, the losses you will incur in terms of credit points from a short sale transaction are almost the same as an actual foreclosure. You can actually lose as much as 300 points. This means that if you have a FICO score of 700, you will be left with just 400. In the United States, it is very important for you to have a high credit score as it is a testament to your paying credibility. Those with high credit scores usually enjoy lower interest rate when they take out a loan.

Credibility

When you choose a short sale transaction, it will come up in your credit report as “pre-foreclosure in redemption status”. Although it sounds better than a “foreclosure” entry, you will still have to live with the fact that it is still a negative entry that can damage your financial reputation.

Waiting Period

This is perhaps the only advantage that a short sale has over a foreclosure. Instead of waiting for as long as 6 years - typical for a foreclosure victim - before you are qualified to buy a home at an acceptable interest rate, a short sale will only mean two years of waiting.

You must also remember that some short sale transactions will require you to settle the difference between the proceeds of the sale and the loan amount, depending on the state you are living in. To be sure, check the short sale procedure being followed in your area.