Little Comfort In Not Being Alone With Real Estate Foreclosures
During a period of low interest rates people have a tendency to borrow money with adjustable rate mortgages, meaning that if the prime interest rate goes up or down, the interest on their mortgage goes along. When interest rates were low, people bought homes they could afford, but when the prime rate began to increase and their mortgage interest rose, the monthly payments also increased resulting in numerous real estate foreclosures.
Typically, a rate of real estate foreclosures is about the same in any given area of the country and when they begin to hit close to home, there may be several foreclosures filed at or near the same time. However, a family seldom finds solace in knowing they are not alone in losing their home. While some of the embarrassment of losing a home to real estate foreclosures may be softened by knowing it is happening to several people at the same time, it seldom takes the sting out of losing the home.
The American dream can quickly turn into a nightmare in the wake of real estate foreclosures and with most families, the initial thought is to do anything that it takes to save the family homestead. Unfortunately, in many cases the reason they are facing foreclosure is due to their current income to debt ratio and assuming more debt is not the right answer to getting out of their dilemma.
Ignoring Warning Sings Will Not Stop Foreclosure Actions
Persons with a close eye on their financial situation usually see clues that real estate foreclosures are in the future. They may be skipping paying a bill or two to make their mortgage payment only to have to skip the mortgage to keep the electricity and heat turned on. By simply turning a blind eye to the warning signs is not going to help save the home from foreclosure.
It has always been noted that the fastest and easiest way to stop real estate foreclosures is to pay whatever is owned on the note. However, this is not always possible and homeowners continue to struggle hoping something turns up that will save them. Short of paying all past due payments, talking with the lender and hoping for some understanding and time to get caught up on back payments, homeowners may find no way out of losing their home.
When short-term solutions are offered to forestall real estate foreclosures they generally do not result in long-term solutions. Depending on the individual's financial condition, it may actually be in their best interest to try to sell the home before foreclosure become final.
