Nobody likes to talk about foreclosures especially if it is their own. Unfortunately,Avoid Foreclosure With These Helpful Tips Articles foreclosures are occurring more than ever in every part of the United States.
Need some advice on avoiding foreclosure?
Here is some general information about foreclosures.
Several states have a record number of foreclosures, such as Arkansas, Arizona, Colorado, California, Florida, Illinois, Massachusetts, Maryland, Michigan, New York, New Jersey, Ohio, Texas, Utah, Virginia, and Wisconsin.
CNN Money reports that adjustable-rate mortgages, especially mortgages that are considered, sub-prime adjustable rate mortgages, continue to contribute to foreclosures.
According to the San Francisco Chronicle, Americans borrowed $2.2 trillion dollars through attractive adjustable rate mortgages between 2004 and 2006.
These adjustable rate mortgages were hard to pass up with low monthly payments.
Unfortunately, these ARMS (adjustable mortgages) cannot last forever. Experts explain that these adjustable rate mortgages need to reset themselves in order to make up for the difference through higher rates, which means a higher mortgage payment.
You don’t need to be an expert in real estate to figure out that when the banks significantly raise someone’s mortgage payment, you are going to see many foreclosures.
It’s also predicted that as these mortgage loans reset, 1.11 million homeowners will lose their homes. This prediction was reported following a study completed by First American CoreLogic, a firm that documents home mortgage risks.
If your mortgage remains unpaid after the due date for a payment, the lender has the right to start a foreclosure. Many banks will allow you a “grace period,” so as not to start any foreclosure process.
After a certain period of time, the lender will send you a certified letter stating that your loan is in default. Included will be any penalties and any unpaid mortgage totals. It is important that you contact the lender to try and work out a plan to pay the bank back.
Banks are not in the business of owning homes; banks are in the business of lending money. Banks do not want the house back! Contact them and try to work out an agreement to pay them back the unpaid payments.
Your loan will likely be reinstated if you bring the mortgage back to good standing if you pay back any outstanding mortgage payments and fees.
If the lender has given you the allotted time to make the loan current, and you cannot make the payments, the loan will still be considered in default and there will be a scheduled auction.