Michigan Foreclosures: Is The State Stepping In?

Many states are experiencing an extremely high rateReal estate agencies, realtors themselves, and the
of homes in foreclosure. This is due to the influx ofrisky lending practices all have a hand in what we see
past years risky lending methods now catching upin the market and in the financial world today.
with the homeowners that took chances and areSome states are helping the consumer with this
now paying the price. In recent years lenders andoverwhelming problem. They are holding "Avoid
buyers alike have been desperate to get into theForeclosure: Tools to Help Save Your Home" forums
housing market. Many buyers were willing to dofor homeowners to attend to get advice. The forum
anything to get the home of their dreams and manyallows consumers to work with some of the largest
lenders were more than willing to do whatever itloan 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 consumersindependent 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 moneyin today's home market can relate to and most
down. Some of these products allowed the homepeople are willing to listen and ask for the help they
buyers to purchase and pay only the interest for theneed, especially when they are in default on their
first several years and then begin balloon paymentsmortgage.
at the stated time in the contract. In retrospect, ifAlthough in appearance, this makes it look like
they were able to refinance before the balloonMichigan is taking a stand to stop foreclosures from
payments kicked in, they would have had anhappening, but that is not the case. The guidelines for
excellent strategy for getting into their home. Thehomeowners 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 changeto take advantage of this opportunity. Some of
their financial situation in any way. They are eitherthese restrictions are anyone that is more than thirty
worse off than they were when they signed thedays late when they inquire would be modified. This
mortgage, or have been put, or put themselves in, aincludes 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 ofcalls to freeze rates for the homeowner, only covers
mortgages are risky for the buyer and the bank asthose mortgages that are set up as an adjustable
well. Let's face it; they are in the business to makerate 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 thegrowing problem with increasing numbers of
contract signed, they have done their job and beenforeclosures in Michigan and many other states. What
compensated for it. Their responsibility is over. Toowe can do however is look at the past and current
many people are misinformed or just plain uninformedmarket and financial outlook and do our best to learn
by their realtors what they are getting themselvesfrom 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 currentfor everyone. It is time to take a long look at
crisis in mortgage foreclosures. In a report from theappreciating what we can afford to have and do and
Office of the Attorney General, Michigan continues tobe truly grateful for it. Although there are many
have one of the highest rates of foreclosures in themortgage 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 homeownerwas willing and able, sometimes we just have to ask
wants to face. This seems like simple logic andourselves, just because we can, does that mean that
common sense, but if that is the case, why thewe should?
continuing increase of loan defaults and foreclosures?