The Never Ending Foreclosures
There have always been homes in our nation facing the ugly battle with foreclosures but it seems that the battle has grown and has actually gotten extremely out of hand. The number of foreclosures in our country has grown at a rapid rate and because of the economy, it does not appear to be getting better any time soon. There are a lot of reasons for the foreclosures and a lot of people are placing blame on the mortgage industry because they gave them loans that they could not afford.
But the fact of the matter is no one forced these homeowners into their mortgage contract. Now, if they were legally scammed and were not aware of mortgage terms changing and such, then that would be a different issue but more in likely those people would be fine because they would have the right to take legal action. But because of all the loans that were given a few years back to people who could not provide proof of income and who signed for adjustable rate mortgages that they could not afford, we are seeing the number of foreclosures increase.
Preventing Foreclosures
Preventing foreclosures do rest on the shoulders of the homeowners themselves, as they were the ones that signed the legally binding documents. It is not fair to expect the mortgage company or the government to bail homeowners out of foreclosures just because they made the mistake signing for something they could not afford. For those getting a new loan, make sure that you are only getting what you can handle as you can not expect to be able to refinance before your adjustable rate kicks in. Because of the way things are right now, it is near impossible for most people.
Also, if you are already into your loan and it is an adjustable rate, many months before the rate change is expected to happen, start saving money because your rates are going to increase dramatically. This is where people get into trouble because they are not financially prepared to handle the increased payments while they wait for a refinance to come through. Falling behind on those payments could end up being the reason why your refinance does not go through and then you will soon be one of the ones on the foreclosures list. Take the proper steps for being responsible for your mortgage and you will be able to avoid being just another one of the many foreclosures taking place.
