| Many states are experiencing an extremely high rate | | | | Real estate agencies, realtors themselves, and the |
| of homes in foreclosure. This is due to the influx of | | | | risky lending practices all have a hand in what we see |
| past years risky lending methods now catching up | | | | in the market and in the financial world today. |
| with the homeowners that took chances and are | | | | Some states are helping the consumer with this |
| now paying the price. In recent years lenders and | | | | overwhelming problem. They are holding "Avoid |
| buyers alike have been desperate to get into the | | | | Foreclosure: Tools to Help Save Your Home" forums |
| housing market. Many buyers were willing to do | | | | for homeowners to attend to get advice. The forum |
| anything to get the home of their dreams and many | | | | allows consumers to work with some of the largest |
| lenders were more than willing to do whatever it | | | | loan and service providers not only for advice and |
| takes to get the mortgage papers signed. | | | | guidance, but also make those providers, and |
| Many predatory lenders have allowed consumers | | | | independent loan counselors available to those who |
| who were previously unable to obtain a mortgage, | | | | attend. Avoiding foreclosure is something that many |
| the opportunity to get one with little or no money | | | | in today's home market can relate to and most |
| down. Some of these products allowed the home | | | | people are willing to listen and ask for the help they |
| buyers to purchase and pay only the interest for the | | | | need, especially when they are in default on their |
| first several years and then begin balloon payments | | | | mortgage. |
| at the stated time in the contract. In retrospect, if | | | | Although in appearance, this makes it look like |
| they were able to refinance before the balloon | | | | Michigan is taking a stand to stop foreclosures from |
| payments kicked in, they would have had an | | | | happening, but that is not the case. The guidelines for |
| excellent strategy for getting into their home. The | | | | homeowners in default or foreclosure to qualify for |
| problem is that too many of these buyers were not, | | | | the program are such that many people will be unable |
| and still is not, in any position to refinance or change | | | | to take advantage of this opportunity. Some of |
| their financial situation in any way. They are either | | | | these restrictions are anyone that is more than thirty |
| worse off than they were when they signed the | | | | days late when they inquire would be modified. This |
| mortgage, or have been put, or put themselves in, a | | | | includes those who have been more than sixty days |
| situation where they are stuck. | | | | late within the last twelve months. This plan, which |
| Real estate businesses know that these types of | | | | calls to freeze rates for the homeowner, only covers |
| mortgages are risky for the buyer and the bank as | | | | those mortgages that are set up as an adjustable |
| well. Let's face it; they are in the business to make | | | | rate mortgage. |
| money. Their bottom line is their bottom line. | | | | Ultimately, there is no real cure or solution for the |
| Therefore, if they make the sale and get the | | | | growing problem with increasing numbers of |
| contract signed, they have done their job and been | | | | foreclosures in Michigan and many other states. What |
| compensated for it. Their responsibility is over. Too | | | | we can do however is look at the past and current |
| many people are misinformed or just plain uninformed | | | | market and financial outlook and do our best to learn |
| by their realtors what they are getting themselves | | | | from it. We would all love to own our dream home, |
| into. | | | | but in reality, that may not, and likely will not, happen |
| Michigan is a state that is not alone in this current | | | | for everyone. It is time to take a long look at |
| crisis in mortgage foreclosures. In a report from the | | | | appreciating what we can afford to have and do and |
| Office of the Attorney General, Michigan continues to | | | | be truly grateful for it. Although there are many |
| have one of the highest rates of foreclosures in the | | | | mortgage companies and real estate companies out |
| country. They further state, as anyone can guess, | | | | there that would work out a deal for anyone that |
| that foreclosure is the nightmare no homeowner | | | | was willing and able, sometimes we just have to ask |
| wants to face. This seems like simple logic and | | | | ourselves, just because we can, does that mean that |
| common sense, but if that is the case, why the | | | | we should? |
| continuing increase of loan defaults and foreclosures? | | | | |