As interest rates rise and home price appreciation comes to a grinding halt, an ever increasing number of homeowners are starting or have been falling behind on their mortgage payments. Some find themselves already on the brink of foreclosure.
The numbers around nation for households going into
foreclosure are staggering,
How did all this happen? Easier access to home mortgage loans, a volatile economy and mortgages that suddenly exceed the financial abilities of the homeowner are causing a climb in foreclosure rates across the nation.
Homeowners who facing
foreclosure may want to consider calling 1-888-995-HOPE to receive some foreclosure prevention counseling from the U.S. Department of Housing and Urban Development.
The early stages of foreclosure are always the most crucial. Studies have shown that homeowners who are one or two payments behind or in arrears are more likely to keep their homes than those who fall further behind on their payment schedule.
Counselors are often the first line of defense for homeowners who are facing foreclosure, helping determine whether the family needs help to fill short-term or long-term income gaps, aid to repair property damage, or assistance in budgeting and money management.
Research has shown that it is much less expensive to counsel and or restructure loans than it is to foreclose. The cost to the borrower includes a lost home, lost equity and devastated credit. The cost to the community includes loss in tax revenue that affects things like law enforcement services and lost economic development.