Americas Watchdog & its Homeowners Consumer Center are offering important tips for all US homeowners to survive the mortgage meltdown and other very useful information about being a smart homeowner in 2008. According to the group, “the worst is yet to come so homeowners need to be very smart with respect to the choices they make in 2008”.
Americas Watchdog and its Homeowners Consumer Center are the premier consumer advocates for homeowners in the United States. The Homeowners Consumer Center is one of the best known homeowners advice, or homeowners information resources in the United States. The Homeowner Consumer Center has just released its top seven list for smart homeowners wishing to survive the 2008 real estate disaster, along with some hard cold truths about the future of the US real estate markets. As follow:
1. Home prices will continue to fall in the US. Americas Watchdog’s National Mortgage Complaint Center expects a 10% decrease in 2008 and at least a 10% decrease in 2009. According to the Federal Reserve, currently 1 out of 7 US homeowners owes more on their home than it is worth. Americas Watchdog expects that by mid 2009 1 out of 5 US homeowners will owe more on their home than it is worth. This is because with 2 million expected foreclosures in 2008, banks are slashing home prices by as much as 40%, to get rid of the property. Americas Watchdog says, “dramatic sales price reductions by banks has the affect of creating new comparable home sales data for a neighborhood, and by doing so the value of all homes in a neighborhood is decreased. The National Mortgage Complaint Center’s web site is located at Http://NationalMortgageComplaintCenter.Com
2. Potential homeowners or real estate investors should be extremely wary of real estate auctions or foreclosure events according to the Homeowners Consumer Center. The group says, “why buy a house in 2008 that will be worth 15% less in late 2009″.
3. If a homeowner is currently more than 10% upside down on the value of their home related to their loan amount, they should consider contacting their attorney about going deed in lieu of foreclosure (simply walking away from the home), or doing a short sale (where the bank accepts whatever price the borrower can get for the house). According to the National Mortgage complaint center, why continue to make payments on a mortgage, that is greater than the homes value?”
4. If a homeowner intends to stay in their home, they should gather recent home sales information in their neighborhood, and appeal their county property taxes. US real estate values are down at least 15% to 25% in almost every major US real estate market. Why pay a higher property tax bill than required?
5. All US homeowners who intend to stay in their homes need to update their homeowners insurance policy. Six months ago the Homeowners Consumer Center completed a study where it was discovered that less than 5% of all US homeowners have updated their homeowners insurance policy. Americas Watchdog used to be based in New Orleans, before, during and after Hurricane Katrina. The group is begging all US homeowners to do the following:
- If a homeowner lives in an area that could flood or be impacted by a hurricane, get flood insurance & flood insurance contents coverage (All states along the Atlantic & Gulf Coast)
- If a homeowner has not updated their homeowners insurance in at least two years, they should invite their insurance agent to come by their home & make a list that includes all home electronics, jewelry, home improvements, etc. Have the agent verify in writing the additional items covered.
- All homeowners insurance policies should include loss of use insurance, in the event the home floods, or has a fire. Loss of use will provide rental assistance to a homeowner if their home is undergoing repair work rendering it unsafe to occupy.
6. Americas Watchdog is still demanding that Congress do away with the worst case of mortgage fraud in US history, where banks and mortgage bankers are allowed to get a huge kick back called a “yield spread premium” with no disclosure to the consumer. According to the group, “mortgage brokers are required to disclose this kick back, but banks and mortgage bankers have no such requirement even they get this huge kick back too”. Americas Watchdog estimates that 50 million US homeowners pay a higher monthly mortgage payment than they should have received, because a mortgage banker or bank received a huge hidden kickback for increasing the borrowers interest rate/monthly mortgage payment, with no requirement to disclose it to a unsuspecting consumer. All US homeowners should write their Congress Person & US Senator & demand this double standard be changed. All US Presidential candidates should have to explain this double standard to the voters.
7. Americas Watchdog’s Homeowners Consumer Center is encouraging all US homeowners to review their free mortgage guide. The 20 page guide was designed to assist all US homeowners understand the mortgage process and the tricks of banks and mortgage lenders related to mortgages. The free mortgage guide is located on the Homeowners Consumer Center’s resource page. The Homeowners Consumer Centers web site is located at Http://HomeownersConsumerCenter.Com
Americas Watchdog thinks this is vital information for all US homeowners or potential homeowners. The group asks that readers of this press release forward it onto friends, co-workers and family members.
Americas Watchdog & its Homeowner Consumer Center are all about truthful Homeowners advice, consumer protection and corporate fair play.
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Posted On: Washington, DC April 2, 2008
