It’s so sad to see the devastating effects of forclosure. Part of the problem is consumer responsibility, but a huge problem is unethical lending practices.

I feel it is a travesty that in the United States that hard working Americans are faced with losing their homes that they worked so hard to obtain. Through no actual fault of their own, job loss, illness, accidents that leave people without the income to continue living their lives. The stress have led to many suicides and the increase of domestic violence. Losing ones home is worse than death. There should be something that these people can do to save their homes. Especially, when the lender has a track record that had been usually perfect until devastation struck these unfortunate families. Most of these people have children. What happens to these poor children? Adults can barely handle the humiliation. But, children, they are much more fragile. Once it gets out that they are being forced out by the Sheriff, then as well all know, their peer groups somehow find out what happened to their parents income and now they are considered outcasts. Does anyone care? NO!!! This is the United States! These poor people don’t feel like they live in the richest country in the world! There should be a way to stop this insanity. Because foreclosure hurts more than the banks! It wrecks lives, marriages and children! Indianapolis, IN

The problem is that this is a two way street. On the one hand, banks should not be offering people mortgages that they are not going to be able to afford. All of the ARM’s and balloon mortgages out there right now are a perfect example of bad lending practice. These loans get people to stretch to buy into houses that they can’t afford, and this not only leaves those buyers in default down the road, but it also artificially inflates property values because of the ease with which people can get money.

On the other hand, buyers need to take some responsibility here. Yes, foreclosure is very hard, on families, on children, on everyone. However, you have an affirmative duty when you take a loan to make sure before-hand that you’re going to be able to pay it back. Moreover, if you come on “hard times” you should already have an emergency fund saved for just such an occasion. Banks can’t prevent this by being stricter with mortgage applications because, if you refuse to save anything, it doesn’t matter how much a bank loans you. If you lose you’re job, you’re not going to be able to pay (even a small amount). Simple as that. We can’t expect banks to just pay for our houses for us because our lives are tough or it would be nice for our kids. The only thing that can save us is education. No set of rules enforced by banks (or anyone else for that matter) can effectively police YOUR buying decisions. As long as you have the right to contract, you have the right to ruin your own finances. Don’t expect someone to fix it for you when that’s what you do.

This is a great investing opportunity if done correctly. Discounts off market value can range from 20% to 35% on average. A low cash down payment is possible if structured properly. You have ample time to research properties. Unique and flexible sales agreements are possible.

Hi, a great article i ran accross that will interest many.

Foreclosure statistics

Foreclosure statistics from 2006 show some frightening trends in the numbers of foreclosures and loan defaults. Foreclosures appear to be up nearly 40% from 2005, and almost 75% from the first three months of last year.

Americans are anxious in recent months to take on mortgages and real estate prices are rising fairly rapidly and dramatically. Housing has doubled in many cases, in both cost and in value.
Americans appear to be willing to go completely in debt to own a home, and are not always borrowing wisely.

Many will borrow vast sums to own a home they are ill able to afford or pay for, purchasing using such tools as interest only loans, which give them the right to make payments of interest only for the first several years, then balloon to include more than the interest. When first time buyers are being faced with not being able to own a home for a time, many are choosing more risky means of gaining access to that home, among them, such loans as interest only.

Banks and financial institutions are looking for ways to continue lending, particularly in light of the rising market values and their hopes that the market values will continue to rise rather than level off or fall. Each financial institution wants a piece of the action, and so they make the risky loans.
The problem with that is, that home prices are not guaranteed to continue on the upsurge, and buyers and borrowers are going to be faced, eventually with that shock when the actual payments begin.

After the five year interest only aspect of the loan, the payments could raise as much as 30 to 50%, and many borrowers will be ill equipped financially to deal with that. They will then be prime targets for default or foreclosure, being unable to meet the newer raised payments. Most will adopt another strategy. Prior to the costs and payments rising, they will hope to refinance their payments at the end of the interest only time period, and shop for new financiers. Many, who are unable to find one, will be enmeshed in payments they cannot afford, or party to a foreclosure action.

The reason for many foreclosures is high risk borrowing by those who absolutely cannot afford the payments on the home they choose, yet choose to purchase it anyway and to find a risky way to afford the mortgage. Research and realistic thinking will serve to prevent many foreclosures, making you one less statistic to be reported.

Who enforces foreclosures of homes? is it the police department. My question is who exactly throws people out?