Are you in trouble with your mortgage payments? You are not alone. I found an informative article over at Yahoo! Finance that provides more discouraging detail about the foreclosure crisis that is facing this country and has not abated yet.
Of note - 1 in every 483 homeowners across the country have received some sort of foreclosure notice. There are basically three types of these notices - default notice (owners are very late on payments), auction sale notice, and bank repossession. About half of the current foreclosure proceedings will be taken care of via sale or payment by the owner, but many will be repossessed or sold at auction.
The hardest hit areas? 9 of the top 10 cities/towns are in California and Florida, with Nevada, Arizona, and Michigan also dealing with this severe problem. Why is this happening? Alan Zibel, the author of the article mentioned above, sums it up very well,
“The combination of weak housing sales, falling home values, tighter mortgage lending criteria and a slowing U.S. economy has left financially strapped homeowners with few options to avoid foreclosure. Many can’t find buyers or owe more than their home is worth and can’t get refinanced into an affordable loan.”
How can we solve this problem? Apparently not with President Bush’s Hope Now coalition. Critics say that this plan falls far short of helping with the problem. I will say that one of the major problems is that not enough consumers have reached out for help. If you are a struggling owner, feel free to visit this page to learn about some available resources.
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