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