Generally, this space is set aside to talk about consumer issues – housing market conditions, how to attract buyers and that kind of thing.

However, we’ve not addressed foreclosures much in this column over the past couple of years. That’s unfortunate because high foreclosure rates have become major problems for Arkansas consumers.

It’s very true that we’ve not seen the foreclosure rates that are ravaging markets in areas of Arizona, California, Florida, Nevada, etc. Still, more than a few people in Arkansas that took out subprime mortgages – and even prime mortgages – are in danger of losing their homes.

Telling those individuals and families that Arkansas has fared better than a lot of national markets doesn’t mean much to them. What the people who are going through a foreclosure process want to know what help is available.

A lot of times, figuring out what options are available to homeowners when they start to fall behind on their mortgages can be as simple as calling the lender. There are both federal programs and private programs through lenders that are put in place to help people keep their homes.

What many consumers might not know is that banks generally don’t want to take back a bunch of homes and put them on the market. They lose money on those deals and, quite often, come out ahead by simply choosing to work out an arrangement through which the consumer keeps the house and pays on a loan with modified terms.

It’s important to point out that homeowners who visit with their lenders as soon as problems arise with their mortgages are typically better off than those borrowers who wait until a foreclosure process starts. In other words start talking to the lender as soon as it’s obvious that you might fall behind on your mortgage – the longer you wait, the fewer options you’ll have.

For the people who simply can’t take advantage of one of those programs, banks have become much more receptive to short sales. A short sale, simply put, is a transaction in which a bank agrees to accept less than what is owed on a mortgage as payment in full on a house.

Why? Banks generally lose a lot of money if they go all the way through the foreclosure. If a lender will lose less through a short sale, you’d better believe that lender will take a close look at one.

Under the short sale scenario, then, the borrower comes out ahead, the bank comes out ahead and a buyer comes out in better shape, too.

As for the Arkansas Realtors Association, we’re concerned about foreclosure rates in the state, too. We’ve agreed to co-sponsor in a seminar hosted by Legal Aid of Arkansas in April that will train attorneys, accountants, bankers, real estate agents and other interested parties about foreclosure law in the state.

Legal Aid is kicking off a statewide effort to help people who are facing foreclosure. That’s a great program and one that we support without hesitation – Legal Aid is a top-notch organization that has helped a lot of people in Arkansas and we’re happy to help the group’s efforts to combat the foreclosure problem in the state.

It’s worth mentioning that Credit Counseling of Arkansas – another fantastic organization – has also agreed to co-sponsor the event.

So far we know that the seminar will be held in northwest Arkansas in April. We’ll release more details when we get them.

House to House is written by ARA Director of Media Relations Ethan C. Nobles and is distributed weekly to publications in the Natural State by the Arkansas Realtors® Association.

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