"Every repossessed home is a broken American dream for families, who lose not only money and a home, but also give up years of happy memories and hopes for a solid future."
In an article for The Detroit News, Brian O'Connor discusses the record foreclosures in Wayne County, Michigan. In January 2006 alone, there were 3,364 foreclosure. That's more than any other county in the nation by more than 1,000, according to some statistics. And while Wayne County sets the bar high, foreclosures are also up throughout the state.
Foreclosures certainly take their toll on the families who live through them, but they also affect the lenders and the community at large. "Lenders, stuck with the homes, lose up to $50,000 per house as they clear them out at below-market prices." There are many factors that contribute to the rise in foreclosures: job-loss, poor economic situations, adjustable mortgages, and other aggressive lending practices by mortgage brokers. Personal problems such as divorce or illness also cause homeowners to default on their loans.
One man profiled in this article once owned his home free and clear. While separated from his wife, he took out a 30-year mortgage on the home, but fell behind in payments. "He refinanced to a sub-prime loan charging 13 percent interest. But he had fallen behind on taxes, too, and now owes more than $64,000 to the lender, including $16,000 for taxes. Although he's declared bankruptcy, the home was excluded." His payment jumped from $500 a month to $2200 a month.
Situations like this man's happen across the county every day. But foreclosure doesn't have to be the answer. To learn more, visit our website at www.FreeShortSaleSecrets.com
No comments:
Post a Comment