Recently Triangle Virginia Ranked #2 on a list of the highest increase in foreclosures. This list was comprised of the top 10 cities in the country.
The top ten cities were as follows.
- 1. Columbia, South Carolina: 492%
- 2. Woodbridge, Virginia: 414%
- 3. Triangle, Virginia: 363%
- 4. Oceanside, California: 182%
- 5. Norfolk, Virginia: 155%
- 6. Havelock, North Carolina: 133%
- 7. Carlsbad, California: 131%
- 8. Barstow, California: 120%
- 9. Columbus, Georgia: 102%
Nationally, the rate was 59 percent in the same period.
These statistics come as a result of military families having been a target of subprime lenders back in the Real Estate boom. The subprime lenders saw military families as viable candidates for their loans, due to their frequent moves, overseas stints, and low pay meant they were more likely to have weak credit.
These mortgages included an initial low variable or fixed interest rate that was subject to change over a period of time. As the Real Estate market changed these low interest rates rocketed and brought the monthly mortgage payments well beyond the reach of most military personnel.
Triangle, Virginia is the home Quantico Marine Station. The major Quantico commands are:
- 1. Combat Development Command
- 2. Officer Candidate School
- 3. FBI's principal research and training facility.
A large portion of the foreclosures in the Triangle Virginia area are on homes belonging to the military personnel that are being trained to fight oversees, or are currently seeing active duty.
Regulations
While there are regulations that help safeguard military personnel that are involved in combat duty, these laws are either inadequate or simply are not being made public knowledge to those military members who are facing foreclosure. The Service Members civil relief act protects soldiers and sailors from losing homes for nonpayment of mortgages while on active duty. However it this relief is cut short once they return home. Military members are forced to face these financial situations within 90 days after they return home.
While there are members of Congress trying to get this limit extended to a year, those soldiers and sailors that are currently returning home are more often than not facing foreclosure. They are fighting for their country, and once they get home they are having to fight foreclosure.
Foreclosure counseling
While the VA has counselors in place to assist military personnel with mortgage modifications to often these mortgages are with private sector loan institutions. So they are forced to face the banks and lending institutions by themselves.
While there are civilian sector relief services such as Hope Now, these services are dramatically understaffed and in many cases are either not able or just not willing to help. When military personnel can get through they are typically not being offered sufficient assistance. In many cases they are not being made aware of the laws that are designed to assist them until it is too late.
There is a law in place that gives military personnel the right to have interest rates temporarily lowered to 6 percent on loans incurred prior to entering active service. Unfortunately they have to apply for this rate themselves, and too often they are not being made aware of this situation.
The news and Presidential Administration is telling distressed homeowners that there is no need to get assistance with mortgage modifications, that there the banks are staffed with people to help with these cases, but truth is the banks simply do not have enough staff to help, or they simply aren't not willing to be of sufficient help.
Mortgage modifications
Statistics show that over 51% of all mortgages that were modified in 2008 defaulted anyway. This is proof that the mortgage modifications that are being made are just not sufficient, and in many cases these victims of foreclosure are the very men and women who have fought for this country to keep its freedom.
What needs to occur is that these military personnel need to be directed to reputable foreclosure agencies that will provide "firepower" when facing the banks and loan agencies; they need to be made aware of their options.
If you are active duty military and you find yourself facing foreclosure then you need to learn what your options are and you need to find a reputable agency that will help you face the foreclosure enemy. You do have a right to win the battle against foreclosure.
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