AFRC provides foreclosure guidance Published Oct. 31, 2008 By Tech. Sgt. Donald Osborn 60th Air Mobility Wing Public Affairs TRAVIS AIR FORCE BASE, Calif. -- Among the current financial crisis that has affected almost every American recently, there is another dilemma looming for current and former homeowners called foreclosure. California is one of six states that account for more than 60 percent of all foreclosures in the U.S. today. California foreclosures accounts for more than 25 percent of those six states, equating to more than 250,000 properties in the third quarter of 2008 alone. What does this mean for Team Travis members? "It means some of our members are permanently changing stations and are unable to sell their homes," said Mr. Tom Day, Airman and Family Readiness Center community readiness consultant and personal financial manager. "Just as bad, some of the ones that are not PCSing can't afford to stay in their homes anymore." Home values have decreased in the surrounding communities around Travis for the past couple of years. Declining home values, tighter mortgage criteria and the economy are a few of the reasons why some homeowners are facing foreclosure. "Many of the homeowners can't find buyers anywhere near the price they paid for their home when they have to sell due to a PCS," said Mr. Tom Bradley, AFRC community readiness consultant and assistant personal financial manager. "Or they owe more than the home is worth now and when their interest only or variable loan period expires they can't refinance into an affordable loan." Although there may not be much Team Travis members can do about the foreclosure crisis, there are options homeowners have to avoid foreclosure on their loans. "The first thing I suggest homeowners do is to contact their lenders," said Mr. Day. "Most of them are willing to work with you to avoid the foreclosure." Some of the options lenders may provide are forbearance (giving the homeowner time to work out a repayment loan), spreading out the missed payments over a longer term, changing the terms of the loan (including changing the interest rate) or adding the back payments to your loan balance. According to the AFRC, the number of people seeking information on foreclosures rose from none in 2006 to 35 in 2008, so far. "These numbers could be just the tip of the iceberg," said Mr. Bradley. "We expect the foreclosure crisis to last at least another four to five years based on the loans some of our clients have." Homeowners aren't the only ones affected by foreclosures. Many renters and those who lease are being forced out of their homes by landlords who are foreclosing on their property. The government authorizes short distance moves for those who are renting or leasing a property in foreclosure thanks to a recent change to the Joint Federal Travel Regulations, Volume 1. Effective July 30, 2008, the Per Diem, Travel and Transportation Allowance Committee approved changes to the JFTR. In part, it states: "The changes authorize a local move of Household Goods when an Armed Forces member and/or the member's dependant is forced to move because the dwelling that the member is renting is in foreclosure." Foreclosure on a loan can have adverse effects for military members. "Not only can it freeze your credit, but the negative information in your credit report may also affect your security clearance," said Mr. Day. "I would suggest anyone facing foreclosure contact your security manager for more information." In an effort to help combat foreclosures for Team Travis members, the AFRC will hold quarterly classes to inform members how to avoid foreclosures, what to do if members are facing a foreclosure and information for renters whose landlords are facing foreclosure. The AFRC currently offers one-on-one counseling for those facing foreclosure or wanting information about foreclosures. In addition, the AFRC also offers classes on home buying and personal finance. For more information on foreclosures, or to schedule an appointment, please call the AFRC at 424-2486.