According to reports on what the research has proven to be the 3 major reasons why there are so many foreclosures - nationwide:

1. Adjustable rates
2. Interest only
3. Rates reset after several years - to higher rate

Not to mention that our economy sucks right now!  Gas is too high in most areas - especially California.  Wages are not that great, too many people - too less jobs, the war, the government and upswing trends in lifestyles are all factors, but the blame is not limited to those mentioned.

If you have fallen into one of these catagories and have a hardship or feel you are going to be put into a hardship situation, please check with your lender to see if he/she is able to modify the terms to get you current or to help keep you current.

Tip: Find out how FICO scores are figured, and what you can do to improve yours, if needed.

• Now is the time to refi so you can lock in a low fixed rate.  Having a monthly payment that will never change can give you comfort and relieve and stability.
• Find out what your credit score rating is, and if it needs to be corrected or improved - work on it.  Do some research on how to do that yourself or speak with your lender, they are equiped to give you some tips that could help you improve your scores.
• Shop around to at least 3 lenders and look beyond the monthly payments

It won't be easy:  But these are things you should Remember

1. This problem is affecting all - subprime started off being the largest sector affected but now it is spilling over into all levels
2. It is harder to get a loan
3. Foreclosures have increased 27% since last quarter and 35% increase since first quarter of last year - nationwide.
4. All banks have tightened in the subprime market and has not indication that it will ease up on the rope.
5. Credit scores are a mathematical formula that evaluates the information in your credit report files.  Those that use that score to allow you to get credit:  Lenders, Car Insurance Companies, Cell Phones, Landlords, Employees/background checks.  (lenders include: mortgage, auto loans and any other type of loan).
6. You can get a free credit report at (www.annualcreditreport.com) but you will have to pay $16.00 for your FICO score at www.myfico.com.  You can also get all 3 bureaus report side by side for $48.00. Well worth the investment.

Basic tips:

1. Know your credit score before they do!  Order your free report
2. FICO scores range from 300-850
3. 723 is a median FICO score in US (about 58% have a credit score of 700 or or above)
4. 700 (1-4 have below 700) in US