At least FOUR submissions must be made for each weekly Discussion Board (1 response to each of the two main discussion question – due by Day 3 (WED) AND 1 responses to one of your  classmates responses to the discussion questions AND 1 additional response to optional questions, your instructor,  or your classmates – due by Day 7 (SUN)). There will be a minimum of two discussion questions each week that you are required to respond to. Please keep in mind that your initial response should be well thought out to receive full credit (i.e., incorporating readings from the course as well as outside sources). Your initial responses should be one – two paragraphs (depending on the question) or the required length that is stated in the question (i.e., 100-150 words). Each paragraph should contain at least 3-4 sentences. Please remember to properly cite your sources (APA Format). Also, remember to respond to at least two of your classmates.

Question 1:

What is meant by mortgage foreclosure and what alternatives are there to such action?

Student’s response:

According to our textbook on page number 27, “Foreclosure involves the sale of property by the courts to satisfy the unpaid debt (Brueggeman and Fisher, 27).” According t the textbook, there are different set of foreclosures by government or by lenders. However, sometimes the lenders want to work out the alternative plans instead of making the actual foreclosure. This is due to the fact that actual foreclosure can result in costly repairs and other expenses.

A “workout” is often described as alternative solutions that the lender give up legal claims currently in exchange for some concessions such as borrower provide information or some control over assets/revenue, etc.

There are six alternatives in a workout that can substitute the actual foreclosure according to the textbook:

“1. Restructuring of the mortgage loan.

1. Transfer of the mortgage to a new owner.
2. Voluntary conveyance of the title to the mortgagee (lender).
3. A “friendly foreclosure”
4. A prepackaged bankruptcy
5. A “short sale” with the lender agreeing to a sale price less than the loan balance (Brueggeman and Fisher, 27).”

According to the author, these six alternatives can be other workout choices other than foreclosure.

For the first workout plan of Restructuring of the mortgage loan, there might be modified terms of payments of principals, interests, extension of payments, or even partial forgiven interests.

For the second workout plan of Transfer of the mortgage to a new owner, the mortgagor or current home owner who is about to foreclose sell his property to someone hoping that the buyer will consider the value is exceeding the debt.

For the third workout plan of Voluntary conveyancy of the title to the mortgagee (lender), this is similar to situation two, but the mortgagor is selling his equity part of the property to the lender. There can be paybacks, amount dues, or no dues and no pays agreed upon both parties. In this case, the mortgagor “sells” his net ownership of the property to the lender, usually the bank.

For the fourth workout plan of A “friendly foreclosure, which is another term for foreclosure but the lender and the borrower agree to cooperate with each other that may result less tensions and damages in a court.

For the fifth workout plan of A prepackaged bankruptcy, is like an agreement that the debt been discharged for the borrower over the borrower give up the asset to creditors or debt holders.

For the sixth workout plan of A “short sale” with the lender agreeing to a sale price less than the loan balance, then turns over the proceeds of sale to the lender. Sometimes the lender will pursue a deficiency judgment.

Question 2:

EXPLORING THE WEB

Please visit United States Department of Housing & Development at  https://www.hud.gov (Links to an external site.).   Explore the site.  What is the purpose of the organization?  Bring back something that interest you or that you learned and share it with the class.

Please be sure to check out MORE–>ONLINE SYSTEMS–>FORECLOSURE COUNSELORS and search for counselors in your area and review the services that they provide.

Student’s response:

HUD is a non-profit government organization with subsidies to make affordable housing possible for the low income families. HUD issues a voucher to the multifamily complex to individual renters of subsidized housing. It also have services about how to avoid foreclosure, home improvement, homes for sale. It helps to locate apartments and deals with issues about fair lending, housing discrimination and disabled people.

HUD also provided counseling services to people facing with foreclosure. I entered 02169 to search for the counselors. It turned out the two companies that deals with foreclosure in Quincy area, the Quincy Community Action Programs, Inc and the Neighborhood Housing Services. You can contact them with questions about foreclosure.