More and more homeowners have stretched themselves too thin and are facing the reality that they may lose their homes.
Thousands of homeowners who purchased early in the new millennium are facing tougher times as their low introductory rate mortgages are adjusting. Some industries experts are speculating that more than 30% of homeowners who financed their homes with Adjustable Rate Mortgages (ARM’s) in the early 2000’s will soon face an increased mortgage payment that they won’t be able to pay.
This could force hundreds of thousands of homeowners nationwide to either refinance their homes into a long term locked rate or try another “tricky” adjustable rate loan to avoid foreclosure. Thousands more could be forced from their homes as Lenders begin foreclosing on properties because of missed mortgage payments.
The affects are already starting to show. A recent RealtyTrac survey reported that 115,292 properties went into foreclosure in the month of August, up 53% from last year.
The foreclosure problem is a direct result of irresponsible borrowing and irresponsible lending practices. Creative financing options like ARM’s and interest only loans have created opportunities for potential homeowners to purchase bigger, more expensive homes then they truly can afford. Low introductory rates are appealing to consumers, but all too often when the rate adjusts it makes the new payment unaffordable.
Compounding the problem; home values across most of the nation are either stagnant or slowly falling. Having little or no equity in a home can make it virtually impossible to refinance, especially for homeowners who have less than perfect credit. This could leave thousands of homeowners with only one choice - come up with the money or foreclose.
If you have questions or need assistance in evaluating your current mortgage situation or if you have any mortgage, home loan, refinance, home equity, debt consolidation, reverse mortgage or foreclosure questions please visit www.BestLoanAgentLive.com – The website is free for consumers and 100% chat based. It doesn’t require your phone numbers or e-mail address for free live advice from qualified Loan Officers nationwide.
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