Home foreclosures in the US have reached near epidemic proportions with 1.26 million foreclosures happening annually. If the trends seen during the first six months of 2007 continue, cities like Detroit, Las Vegas and Riverside/San Bernadino, Stockton and Sacramento in California will see one foreclosure action per 15 households.
Why is this happening? In order for us to combat an enemy such as this, we must know as much about “him” as possible. Some of the most common reasons for this are:
1. The slow down in the growth of home prices or the deflation of the bubble that had been growing over the last 12 years is in reverse. Most of us understand being “upside down” in the value of our automobile. The same thing has happened with homes. Texas has not yet been hit badly with this problem but it could and is predicted to happen soon.
2. Homeowners were unable to get a fixed rate on their mortgage so they took adjustable rate mortgages. Lenders loosened up the funds so people could get into a home with no money down. The rates are now increasing on these loans and are causing the cash crunch. Central Texas has experienced an increasing rate of foreclosures in new homes as well as resale homes over the past few years due to this practice.
3. Other home owners have tapped into their equity to payoff credit card debt which is a good idea if the loan terms are favorable and if the debtor has learned their lesson. Many mortgage brokers have seen people refinancing every few years getting further and further away from ever owning their home like our grandparents did.
What can we do to prevent us from becoming one of these 1.26 million foreclosures?
Pay off credit card debt.
Buy with cash only.
Be careful refinancing your home. The costs can be high and you can just get deeper into debt unless you have learned your lesson.
Look for ways to become debt free.
The good news is there is a product in the US helping homeowners as well as investors and businesses get equity in their homes and properties quickly by canceling interest paid to the mortgage lender. This product, although new to the US, has been used overseas for more than 10 years allowing those in Europe, Australia and New Zealand pay their homes off faster and with less interest paid to the lender.
To learn more about accelerating your home equity, saving thousands of dollars in mortgage interest and protecting your family from foreclosure, call Margie Harshaw at 346-3484 or 569-8902 today. Receive a free, no obligation cost analysis to see how quickly you could pay off your mortgage with little to no life style change.
http://www.halfmymortgage.net/MMAnews.htm TV documentary
http://www.xmission.com/~u1st/flash/index2.html 2 minute advertisement and explanation
http://team.webexone.com/login.asp?loc=&link= training link, sign in as guest
http://designingfutures.webexone.com/login.asp?loc=&link= lists of webinars put on by Lyn Spencer
http://www.u1stfinancial.com/Portals/0/media/mma100.html mma explanation
http://www.margieharshaw.com another website of mine with videos
This posting was provided by Margie Harshaw, United 1st Finaancial
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