Many homeowners are facing foreclosure because of bad loans with high and often hidden fees, prepayment penalties and rapidly rising interest rates. Some homeowners got into those loans knowing the risks. But others, experts say, were pressured or even tricked into a loan they couldn't afford.
Loose lending guidelines, little regulation of the mortgage industry, higher home prices, too many risky subprime loans and in some cases greed and fraud have led to a slew of bad loans and to the rising foreclosure problem in this country.
The problem is more widespread than just people who bought homes with bad loans during the past few years. Many homeowners refinanced, opting for the riskier loans with often deceptively low initial payments so they could cash in on their home's equity.
It's very sad. A lot of people were preyed on and didn't understand what kind of loan they were getting into "There was some greed involved, but many buyers were made promises and were lied to."The number of home foreclosures has skyrocketed in recent years in the United States. An alarming number of these involve homeowners who felt certain that they could cover their mortgage payments when they signed the papers. However, many had unwittingly played into the high-interest and fee-laden traps of predatory lenders. To stop home foreclosure, it's crucial to know the the consumer protection laws on the books.
If you are a homeowner, foreclosure is not something that you want to think about. In fact, it is something that you will want to avoid at all costs. No matter what it takes, you should make sure that you never have to deal with foreclosure. All in all, letting this become your downfall in life is one of the biggest mistakes that you could make. As you can imagine, foreclosure is something that you can avoid if you put your mind to it. Although there are times when people cannot help but to get bit by the foreclosure bug, the majority should be able to avoid this.
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The best way to avoid foreclosure is to take your payments into consideration before you even begin to shop for a new home. By doing this you can be rest assured that you are not going to get in over your head. So many people in todayís world are buying expensive homes that they will never be able to afford; or at least not afford comfortably. You will want to exercise some will power, and simply avoid this. When you buy what you can comfortably afford you should never have to worry about foreclosure in the future.
Foreclosure may sneak up on you if you let your mortgage broker or lender talk you into something that does not suit your needs. For instance, an adjustable rate mortgage may sound great when you are buying a home. Do you know why? Simply put, one of these will allow you to afford a more expensive property up front. But when the rate adjusts, there is a good chance that you are going to be put in a bad spot. And if you think that your broker or lender is going to help, you are wrong. All your lender/broker cares about is getting paid their money when it is due. You need to make sure that you get the loan that best suits your needs. If you do not, foreclosure may be in your future; but you will not even know about it until it pops up one on you one day.
As a homeowner, avoiding foreclosure should not always be on your mind. If you are financially secure, and feel good about your situation, there is no reason that foreclosure will ever affect you. But if you buy too much home or get a loan that is going to change on you, foreclosure could be your downfall in the end.
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We help homeowners who are victims of predatory lending and bank fraud.
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