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Debt Relief – Insolvency – Bankruptcy Information » Student Loan Help » Why so many foreclosures? Are Americans destined to be homeless?

Why so many foreclosures? Are Americans destined to be homeless?

Many Americans have refinanced their homes to payoff previous debts. I refinanced to pay off a student loan and other small debts. I do not own a credit card. I am now losing my home because the interest is making my payment to high. Along with the rising prices of food, insurance,gas, clothes. I have medical insurance but what good is it if you can’t pay the deductible. Prescription drugs are outragious even with insurance. My paycheck is still the same. Mortgage companies are robbing people of the livihood. Why can’t mortgages be recalulated be fit what people CAN afford.

This country is heading for a huge downfall if we are losing our homes.
The county where I live has over 400,000 homes in foreclosure. Next week is my court date, then my son and I will be homeless. There are no resources available when your credit is shot. Single parent knows what I am talking about. It’s catch 22 – you make too much for help and too little to make it grow. I just want to keep my house.


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8 Responses to "Why so many foreclosures? Are Americans destined to be homeless?"

  1. bruschifan4life says:
    As long as Bush is in office we will all be homeless and penniless. Like they say the rich get richer and the poor get poorer.
  2. rhsaunders says:
    You are learning the hard way that there is no such thing as a free lunch. When you take out a mortgage with a low front end payment but higher payments later, you have to be reasonably certain that you can make the higher payments. Usually, that requires a guesstimate as to what interest rates will be in the future, but if you use the average rate for the past few decades, you are reasonably safe. I have one of those mortgages; I paid a higher rate to get a longer front end period, and it still has several years to run before it resets. The reset rate is reasonable for me, and I can easily re-finance if I don’t like it. My best advice for now: take in a tenant or two, to help pay the bills. But you may have waited too long to try to fix the problem.
  3. Frank Castle says:
    1) Because they really believe they can afford a $1,000,000.00 USD house but in reality they can only afford a $100,000.00 USD.
    2) No.

    You need to change your Medical Insurance to a company without a deductible.

    You need to buy a used Honda Insight or Toyota Prius to save on gasoline.

    Your house is gone.

    The next time you buy a house do it with a FIXED INTEREST RATE and you will be fine.

  4. mitch w says:
    the problem is people who have no business buying houses are buying them and financing 100% plus of the house. In no time at all they are upside down in the biggest asset they have. President Bush is not to blame on this one… the mortgage lenders who appraised a 100K house at 125K to make a little extra money then give the loan to someone at 9.5 percent adjustable interest is to blame.

    the reason your mortgage cant be redone is you signed on the dotted line to agree to the terms…. what you need to do is refinance your house at a fixed rate and see of there is someone that can help you. The only time an ARM is the best is if you plan on moving before the adjustable rate kicks in…. if only you had a mortgage lender who would have done what is best for you instead of their wallet

  5. Ryan Marcel says:

    There are tons and tons and tons of them because people are, to put it bluntly, completely stupid when it comes to buying a house. They have no common sense and only think about the here and now. They think “Hey I can afford a 200,000 house and I only make 2500 a month.” You can’t do that. Banks are…or were i should say, giving just about anyone loans and credit to buy houses that people knew they couldn’t afford. They would get an interest only loan or a loan where the first say 1-10 years have significantly lower payments then hit in the face with payments that are 400+ more than they are use to, so they start to get behind. They never look at what the payments are in the long run. They here “…and only pay 660 a month….”….for a 190 thousand dollar house…..Yea like that is how its going to be for 30 yeasr.

    Destined for homlessness.

    At the rate of America’s intelligence. Yes

  6. zclifton2 says:
    Do you have a lawyer, a mortgage broker, and a money adviser, if not, you need to get one. Often it is just a single call away from knowing what you can do to help yourself in the situation you find yourself in.
    Look in your telephone book under the experts all their like . These specialist people and find a free consultation with each one you talk to. Call everyone of them until you find a way to save your home. One in three Lawyers will talk to you for a free consultation if you promise them that if pursue a case against the Bank of whoever owns your mortgage.
    You can do it! If not for yourself, for your kids, and do it!
  7. Rox says:
    A lot of homes are in forclosure because people think they need that bigger fancier house so they buy it but have a hard time selling the old house because everyone else is buying the new houses as well. At least that is one of the reasons there are so many forclosure homes in my state. A lot of companies are also taking their jobs elsewhere and people have to move but no one can buy their house since they are in the same situation themselves. Also, like some others are saying, people aren’t budgeting and actually buying homes they can afford.
    As far as medical insurance, if your employer offers medical insurance that doesn’t work for you, there are ways to get independent insurance… we did this since my employer’s offers were way too high for what we needed so we found an independent so we have the coverage we need and the payments we can afford. Just go online and look at the different companies.
    Good luck with everything!
  8. John Rosa says:
    While the press keeps hounding on the increases in foreclosures, it has often failed to mention the majority of foreclosures are by speculators.

    In short, they already have a house of their own and they had a house or a flip gone bad. This is particularly true in high growth areas like California and Florida where the majority of houses in foreclosures are empty.

    For more info on foreclosures, and how to invest in them, I suggest reading up with a book rather than an expensive infomercial. Best book I have read on the subject can be found here: Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days by Don Sausa [isbn 0978834682]

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