SOURCE: Professor Attorney Richard I. Rydstrom

January 03, 2007 23:20 ET

Homeowners, Banks, Loans & Foreclosures Locked-in for 2007

Attorney Rydstrom Confirms Dramatic Rise in Homeowner Foreclosures and Reveals 13 Homeowner Foreclosure Solutions

NEWPORT BEACH, CA -- (MARKET WIRE) -- January 3, 2007 -- Financial barometers generally look bullish. Interest rates are stable, and the stock market hit an all time high. Inflation remains a key concern. However, residential real estate is losing power (Grubb & Ellis Multi Housing Report 2007, Professor Richard Rydstrom, Esq., LL.M. Taxation says: "The real estate markets are in for an adjustment. It seems probable that many homeowners will face hard times ahead. Those who refinanced with adjustable rate mortgages and stripped almost all of the equity out of their homes may have locked themselves in with no way out! With more houses on the market longer, prices tend to drop. With lower prices and lower appraisals, those homeowners with no equity in circumstances where they can't meet their monthly obligations (either from personal circumstances or higher interest rates) are locked-in because the value of the home no longer supports a full priced sale, another refinance or typical creative financing."

The banking and real estate industry will see a dramatic rise in defaults and foreclosures. Mr. Rydstrom, Esq. says there are solutions and if the banks don't compromise in the solutions proposed below, it will only hurt the profitability of banks. Mr. Rydstrom cites the following solutions available to the homeowner and the industry:

Foreclosure & Compromise Solutions:

The homeowner must learn what solutions are available to navigate through these rough waters. There are several methods or devices that may save not only the homeowner, but the bank, and the economy. More importantly, the homeowner must know who to see to take advantage of these solutions. For example, the homeowner may contact the Loss Mitigation Department of the mortgage company or lender to work out a solution. Some of these solutions are the (1) FOREBEARANCE WITH REINSTATEMENT OR REPAYMENT PLAN AGREEMENT, (2) LOAN MODIFICATION, (3) SHORT REFINANCE, (4) SHORT SALE, (5) MARKET SALE, (6) INVESTOR SALE, (7) INVESTOR SALE AND LEASE BACK, (8) DEED IN LIEU OF FORECLOSURE (9) REVERSE MORTGAGE, (10) BANKRUPTCY, (11) HAND IN KEYS & WALK AWAY CLEAN, (12) WALK AWAY DIRTY, (13) FHA PARTIAL CLAIM.

For more information or a Foreclosure Solutions Guide, email

Contact Information