Foreclosure and the Fetal Position
Foreclosures are a very common occurence in todays world. With a very volatile economy and the unfortunate existance of Adjustable Rate Mortgages, or ARMs, more and more people are finding themselves unable to make their mortgage payments and are teetering on the brink of foreclosure. Foreclosure is something you do not want to go through
Foreclosure is the process by which a lending agent, whether it be a mortgage company or bank move to sell a piece of property attached to a mortgage or deed. If you don’t make your payments expect to have you property foreclosed. These properties are usually put up for auction or foreclosure sale by the lender in an attempt to make back the money they put up for the home.
Looking at the front page of the website Foreclosure.com one can see the saddening statistics of mortgage foreclosure on their front page. At the time this posting was published they had a total of 107,090 foreclosure listings on their site. This didn’t include the preforeclosures and bankruptcies they also list. Many of these foreclosures could have been held off by proactive action on behalf of the homeowner.
If the economy takes a stab at your interest rates on your mortgage, specifically if you have an ARM. It is critical to take an interest in protecting yourself. Contact your broker or lender immediately when you start to feel the pinch and ask for both advice and help. Lenders may allow you to modify your mortgage or refinance which could save your bacon, and some even allow for flexible repayment plans.
Also be prepared to cut out the luxuries in your life at least for the meantime in order to ride out the rough parts. As awful as condensed soup is at least you may keep your house by dining in.
Number one tip: Ask for help immediately, don’t wait until there is an eviction notice on your front door.
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ARM, economy, foreclosure, mortgage, mortgage rates, refinanceRelated Posts: