Home foreclosures have become quite common in the past few years. Too many people used alternative loan programs such as ARMs (Adjustable Rate Mortgages) and stated income loans (also known as no-doc loans and liars loans) to purchase more home than they could afford.
Currently 1 out of 10 homeowners are either in foreclosure or delinquent on their payment, with many more homeowners struggling to make payments. With lender restrictions increasing, many of these owners can’t take advantage of today’s low interest rates to refinance.
Here is a great resource to help you learn about some options you can take if you are having trouble with your mortgage. Remember, there are options. Short sales (selling your home for less than you owe) are becoming easier and more common. While not the best option for some, it is a better alternative to bankruptcy and/or foreclosure. Other options include Mortgage Modification, Deed in Lieu of Foreclosure, Forbearance, Refinance, and Short-refi.