VALDOSTA — You must have seen the columns and columns of legal ads for homes in foreclosure in Lowndes County. Every Friday and sometimes in Saturday editions, there they are.

The national sub-prime mortgage and credit lending crisis that’s taking record numbers of homes from homeowners across the nation is affecting homeowners right in our own backyard.

The statistics on legal ad sales for foreclosures from Daily Times records for the past year may not show the staggering numbers of lost homes in places like Florida or California.

But one home lost is one tragedy made.

There are ways homeowners can avoid the situation of losing their home in a foreclosure. Those tips will be listed below with comments from a reputable local mortgage official.

First, let’s review the numbers in Lowndes County. The Daily Times is the local legal organ or publication for posting legal ads, so the accuracy of these reports should be fairly close to the real situation homeowners are facing here.

Looking at monthly legal ad sales for foreclosures in the first four months of 2008, compared to the same months in 2007, the numbers don’t reveal anything too unusual:

• Foreclosure ads in January 2007 — 45; January 2008 — 45.

• Foreclosure ads in February 2007 — 55; February 2008 — 73.

• Foreclosure ads in March 2007 — 44; March 2008 — 35.

• Foreclosure ads in April 2007 — 32; April 2008 — 34.

Then in 2007 months where there’s yet to be statistics to compare on 2008 numbers, there’s somewhat of a roller-coaster of foreclosures from month to month:

• May 2007 — 33 foreclosure ads.

• June 2007 — 63 foreclosure ads.

• July 2007 — 34 foreclosure ads.

• August 2007 — 62 foreclosure ads.

• September 2007 — 30 foreclosure ads.

• October 2007 — 40 foreclosure ads.

• November 2007 — 65 foreclosure ads.

• December 2007 — 34 foreclosure ads.

Whether the homeowner got into a loan situation that was over their head, was a victim of a predatory lender, made an unwise decision to accept a variable loan that they should have known they couldn’t handle, or simply suffered a job layoff or an overwhelmingly expensive medical calamity, the report of so many homes being lost to foreclosure is tragic.

Fortunately, there are ways for homeowners to avoid losing their homes. We asked Lynn Purvis, Vice President of the Mortgage Division at Farmers and Merchants Bank, to comment on some sound tips on avoiding foreclosure that we found posted at the U.S. Department of Housing and Urban Development’s Web site at www.hud.gov/foreclosure :



Tips for Avoiding Foreclosure: If you are unable to make your mortgage payment:



1. Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

“My first tip to avoid foreclosure is making sure you know you can afford the home before purchasing,” Purvis said. “Just because you can qualify does not mean you can truly afford the house. It does you no good to get into the house if you can not stay in the house. Debt to income ratios is figured on gross income and we all know that is not the money that is truly available to us to make payments with. Be realistic.”



2. Contact your lender as soon as you realize that you have a problem. Lenders do not want your house. They have options to help borrowers through difficult financial times.

“If you are already in a house that you can not afford and you see that it is taking everything you can do to keep these payments made on time, start looking for a way out then, not after you become 30 or 60 days past due,” Purvis said. “Lenders are not in the real estate business, we really do not want your house. Consider putting your house up for sell for the payoff amount.”



3. Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

“Call your lender and advise that you are having difficulty paying, but do not wait on someone that says they will get back with you in a few days, time is of the essence,” Purvis said. “You need answers today, if someone says they will get back to you ask for an expected time and day for your returned call. Document who you spoke with, date, time, etc.; this may be very important information in the days ahead.”



4. Know your mortgage rights.

Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and time frames in your state (as every state is different) by contacting the State Government Housing Office.



5. Understand foreclosure prevention options.

Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the Internet at www.fha.gov/foreclosure/index.cfm.



6. Contact a HUD-approved housing counselor.

The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287, (800) 877-8339 or (800) 569-4287.



7. Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

“Do not try to get your equity out of it if you are in a situation that you know you are going to go into foreclosure if it does not sell,” Purvis added. “Better to sell than to be foreclosed on, because once foreclosed on you will have a very hard time ever getting into another house.”



8. Use your assets.

Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.



9. Avoid foreclosure prevention companies. You don't need to pay fees for foreclosure prevention help. Use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.



10. Don't lose your house to foreclosure recovery scams! If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.

“These are all excellent tips,” Purvis said.