Hampton Roads foreclosure advice

NORFOLK, VA - Two-point-two-million is the estimated number of loans beginning the foreclosure process this year, according to the Mortgage Bankers Association.  The good news is Hampton Roads is actually on the low side of the National Average of foreclosures, meaning less people in Hampton Roads are in foreclosure than many other areas across the nation.

The bad news is thousands of families in Hampton Roads still need help.  The proof is in the paper.  Open the newspaper and you can't miss them.  You'll see listing after listing of foreclosures.

"The worst option is foreclosure," says Dough Knack, a realtor of William E. Wood and Associates in Norfolk.

Knack tells WAVY.com you must contact your lender the second you think you're going to miss a payment.

"A lot of people, because of the situation are embarrassed by it. They think doing nothing, the problem will go away, when in fact what you have to do is act before you get in trouble," says Knack.

There is no need to feel embarrassed, the numbers show you're not alone. According to RealtyTrac's website, in December 2008, 1 in every 438 housing units in Norfolk filed for foreclosure.  In Portsmouth it was 1 in every 182.  On the Peninsula, 1 in every 544 housing units filed in Newport News, and in Hampton, 1 in every 386 houses filed for foreclosure.

"We're going to get to a balance again, we just don't know when," says Knack.

That's why the Federal Reserve is stepping in.  It's plans preliminary, its goal is to keep financially strapped homeowners in their homes by lowering the amount owed on the mortgage or reducing the interest on a loan.

The catch? A borrower must be at least 60 days behind on their mortgage to qualify, which is a concern to Knack.

"My opinion is that this should be a program that's available to folks before they become delinquent to help them to keep from becoming delinquent."

In the meantime, don't be afraid to ask for help.  You have options and there are programs there to help you before your house becomes a newspaper ad.

"The housing market here is not as bad as it has been in other areas and we'll get through this."