Foreclosure Experts at USHUD.com Caution Consumers of New Pitfalls

ANNAPOLIS, Md., Jan. 12 /PRNewswire-USNewswire/ -- In a move to combat a historical foreclosure crisis, Congress passed legislation the last week of 2009 increasing federal support to Fannie Mae and Freddie Mac, the two largest players in the American mortgage industry.

While heralded as positive by many in the housing industry, leading real estate foreclosure experts at USHUD.com and its parent company Heavy Hammer, Inc., warn that homeowners should be wary of high-risk loan programs targeting those with poor credit, and homebuyers should follow proven guidelines when purchasing foreclosure properties.

Heavy Hammer, Inc., CEO Michael Urbanski said homebuyers are ultimately responsible for recognizing what they can and cannot afford.

"To make the best decisions for their families and themselves, homeowners and potential homeowners need to be aware of the hazards that will inevitably present themselves," Urbanski said. "Avoid making the hasty or careless decisions that sent so many other American homebuyers into foreclosure. Exercise personal responsibility, capitalize on available industry intelligence, and seek the advice of experts who can help navigate the challenges and pitfalls of today's real estate foreclosure landscape."

While there is no substitute for the personalized guidance of a USHUD.com expert, Urbanski suggests homebuyers adhere to these guidelines:

* Budget carefully. Know what you can spend each month on your mortgage, adding 5 percent for maintenance. Do not rely on a future increase in income.

* Save first. If you have no savings for a 3.5% down payment, do not buy a house. Savings is a habit you have to learn before taking on the responsibility of home ownership. Start an aggressive savings plan today.

* Do the math. If buying a house will deplete your entire savings account, save more. You should have at least 1% of the value of the home remaining in your savings for incidentals after closing.

Headquartered in Annapolis, Md., Heavy Hammer, Inc., is an online networking and consulting company committed to advocating for the American homebuyer, connecting them with trusted experts and valuable resources. Driving one of the most widely used suites of foreclosure Web sites, Heavy Hammer delivers all-inclusive, completely free lists of foreclosure properties to more than 500,000 homebuyers each month. In business since 1998, Heavy Hammer has focused on geographically-based ad serving technology and processes that allow thousands of professionals to target a specific location and connect directly with consumers in their respective locations. Starting with USHUD.com in 1999, this group of sites now includes many others including more than 30 state- and region-specific sites.

CONTACT:  Joe Chenelly, +1-410-357-1123

SOURCE Heavy Hammer, Inc.