Foreclosures get talked about all the time on the news and on thousands of different websites all across the internet, but all of this talk is worthless if you do not understand the basic concept.
When you buy a home you are generally going to be getting a mortgage. After all, do you have 150-300k sitting in your bank account? People like to talk about how they own a house after getting a mortgage, but unfortunately most of the house is still owned by the bank, or whoever your lender was.
If you fall on hard economic times, like many have over the past 2 years, and cannot make your monthly mortgage payments, there is a good chance that your home will enter a foreclosure.
This is where the bank virtually kicks you out of your home and then tries to sell it to cut their losses.
Banks do not win in this situation, they have to sell an asset of theirs for less than it is worth. Homeowners obviously do not win either, they lose their home in most situations.
This process is the reason that I created this website. I want to do everything that I can to inform my readers about foreclosures and loan modifications as well as attempt to prevent foreclosures.
Foreclosures have hit nearly every area hard over the past 2 years because of the down turn in the real estate market and the economy in general. However certain areas have been hit the hardest:
- Michigan: Michigan’s economy has taken a huge hit overall. The unemployment rate in Michigan is around 15% which is 50% higher than the unemployment rate for the U.S. as a whole. The real estate market is still in turmoil. Although there are signs of recovery, it will not come in a day, week or year. Expect Michigan’s foreclosure and unemployment rate to stay high for years to come.
- Florida: Florida’s economy has taken a hit, but not any worse than every other state. What makes Florida’s situation so disheartening is its real estate market. Property values in Florida were consistently rising 20+% in the mid 2000’s which is not healthy or realistic. As they say, the bigger they are the harder they fall. The past 2 years Florida has experienced a surge in the number of foreclosures. Florida will recover eventually.
- Nevada: Nevada has struggled similarly to Florida, yet on a much smaller scale. Home prices in Nevada are roughly half of what they were when they peaked in early 2007.
I originally intended for this site to cover loan modifications only, but after much deliberation, I have decided that covering foreclosures as well would be the right move. After all, the whole idea behind loan modifications is to avoid foreclosure.
If you are looking for foreclosure help, use all of the free resources at your disposal first.
- The internet! Believe it or not, there are hundreds of websites that offer free foreclosure information for free! [This website is one of them.] Don’t believe everything you see on the internet and do not take any drastic actions because of anything you see on the internet, but if you just want more information about the topic the internet can be a great resource.
- Family and friends. Chances are, you know someone who has dealt with either foreclosures or loan modifications through their occupational or personal history. Talk to anyone and everyone that you trust about your situation, you are bound to get good, solid advice.
- Free help organizations. There are dozens of different charitable organizations out their today that would be willing to donate their time or expertise in order to get you the help that you need.
No one wins in a foreclosure, your best bet is to use the resources available around you to stop the situation from escalating.