Originally Posted on AICWEBLOG on August 14, 2006 by Jim Knox.
Foreclosure, is it necessary?
It has always been the American dream to own your own home, and the American nightmare to be facing foreclosure. According to USA Today, they are approximately 12 million homeowners are close to foreclosure and potentially losing their homes.
With many risky mortgage loans (interest only mortgages, adjustable-rate mortgages… etc) easily available, buyers are able to purchase a more expensive house than they can afford. Unfortunately, it will be devastating to many home owners when these crazy mortgage loans are converted into higher interest loans or fixed rate loans. This is contributing to rising foreclosures in the US.
In addition to losing a major investment, the homeowner facing foreclosure is also faced with a blot on their credit record that could take years to repair. Losing one’s home is one of the most stressful situations that anyone can encounter.