When you examine at the current statistics of the country’s number of foreclosures when compared to a decade ago, you will understand why it is the topic of conversation between many homeowners, economists, and financial analysts. The numbers are scary. Highly populated states with critical housing markets like California, Michigan and Florida have hundreds of thousands of foreclosures every month, while home values continue to decline by the day.
In the last year, 2.3 million homes in the United States went through or are still going through some potion of the foreclosure process. Seven million families altogether are defaulting on their mortgages or are facing foreclosure. Currently, there are indicators that suggest housing prices may be on the rise in the short term, but with foreclosure rates as large as they are, the future of real estate still looks bad in many areas of the country.
Four years ago, foreclosure rates were six times smaller than they are today. The system currently in place to manage foreclosures was not intended} to handle such outrageous quantities. Local government courts are falling behind in hearing cases and performing evictions, and it may take some lenders months to initiate the process of taking back a home. Also, servicers are taking advantage of the panic-stricken atmosphere to make a profit.
If the mortgage servicing companies see to it that borrowers are unable to qualify for the Home Affordable Modification Program (HAMP), then they gain money from your foreclosure. Neither you as the owner nor your lender have anything to gain from your home being reposessed, so many people are pointing the finger of blame on the servicers, which receive more in fees when a homeowner is late than when they are on time in payments.
Luckily, a great number of borrowers are still able to escape foreclosure by means of mortgage altering or short sales. While other methods such as selling outright or acquiring a foreclosure loan may not be as easy anymore, other answers have begun to present themselves in response to the dire housing market. If you are in a stressful situation and hoping to find a way out of your situation, you may not be out of solutions yet.
Speaking with a financial expert can be the best way to learn of your options and begin taking the steps toward securing your place in your home once again. The future of foreclosures may not be so great in your area, but they can be good for you personally if you act now to protect your property, your finances, and your family from any coming economic depression.
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