Free Real Estate Articles by Damian Lanfranchi and Done-For-You Deals

It’s no secret foreclosures are on the rise. Even in neighborhoods where foreclosures were rarely seen, folks are finding themselves behind on payments.

What happened? Did the economy go bad!?!

There’s no shortage of theories and you can read volumes of them in any major paper. For now, here is a simple snapshot of the foreclosure situation for you.

A couple years ago – property prices were very HIGH.

At the same time – mortgage rates were exceptionally LOW.

So banks were offering ARM’s – adjustable rate mortgages. This just means since the banks knew the mortgage rates would eventually rise again – they gave everyone a super cheap rate for now with the understanding the rates would increase when the market changed. But for the moment – WHOO-HOO!! Everyone ran to take advantage of the super low mortgage rates!

TWO groups of folks were caught up in the frenzy.

Long-time Homeowners:

Their property had appreciated in value over the years. With such low rates and high property prices, it only made sense to pull the equity out of their house and refinance. Use the extra cash to take their dream vacation or finally build that home entertainment theater!

New Home buyers:

They were all eager to purchase houses since mortgage rates were so favorable. To make matters worse, people generally buy “more house” than they can afford and home prices were already way too high!

So flash forward to present day. Mortgage rates rise and the “adjustable” part of all those new mortgages take affect.

Suddenly the long-time homeowner who refinanced finds themselves with even higher payments than before! The money they got from refinancing has long been spent on a 60 inch flat panel TV! And now the typical foreclosure solution of “refinancing” can’t help them! Their house is worth less than before! They have no equity. Big problem!!

It’s similar for new home buyers. Their house is worth less than they paid for it and since they only purchased a couple years ago – they have ZERO equity. They already pushed the envelope on their budget when they bought their house so when the adjustable rate mortgage kicks in, they can’t afford the payments. And since they have NO EQUITY, they’ve got serious troubles!

Do you find yourself in either one of these situations? Or maybe you’re behind on your payments for a completely different reason?

Just know you are not alone… AND it’s not your fault! Times have radically changes. While foreclosure was once thought only to affect the poorest folks out there, some of the most successful individuals in million dollar homes are facing the biggest financial problems!

Whatever your situation or even if you just need to know your options – be sure to make a Creative Homeowner Solution Request now. There will be absolutely no cost and no obligation to you. So make your Creative Homeowner Solution Request now by clicking the link on this site.