Foreclosure is a common problem of people in United States. The problem is equally affecting people in all state of United States. The worse affected states by the problems of foreclosure are Arizona, California, Florida and Nevada. All these states are having high density population housing around 21% of total United States population. Currently one out of five people in United States is facing problem of foreclosure.
Foreclosure is the legal process in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust”. Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs.
During the real estate boom in last decade people bought real properties like anything. They thought there will be no better opportunity to buy properties, and bought properties with help of loans and mortgages. But all this future planning vanished, due to the recession in economy. The decreasing value of dollar has caused great loss to United States economy which resulted loss to Banks and other lenders. The property prices are dipping, and people are worried of their investments. Banks are fearful about their returns, and they have increased their interest rates to get maximum returns in least possible time. It results extra burden on people who are already affected of recession.
The dipping value of dollar has caused a great loss to United States economy. The purchasing power of people has decreased, and it resulted in the overall decrement in overall economy. Due to this entire economic crisis property prices have fallen like anything. The property which people purchased with great enthusiasm, excitement and several dreams in mind related to that property has now become a financial burden for them. Even if they want to sell, no body is ready to buy that property even on lower rates, because almost everyone is facing same problems. If celebrities like Evander Holyfield, and Michael Jackson are facing foreclosures then what would have happening with common people.
This is the real scenario of real estate and the properties market in United States. Even lenders and banks are not able to get the return of money which they provided to people as Loan. Because of the fall in economy, there is no customer who can buy the property on real prices and banks and lenders are not able to get the actual amount to recover their debt.
Thus best solution is avoiding foreclosure situation by finding some middle ways like hiring a foreclosure consulting solution provider to avoid negative consequences. This is helpful as well as beneficial for both lenders as well as people facing foreclosure problems.
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