Foreclosure Information

Why are foreclosures on the rise?

You may recall that several years ago interest rates hit an all time record low.  This reduction in interest rates spurred an increased amount of mortgage loans and creative financing.  This creative financing includes what is called an adjustable rate mortgage.  An adjustable rate mortgage allows a consumer to capitalize on extremely low mortgage payments for a fixed amount of time.  However, when interest rates increase, so do the monthly mortgage payments.  Unfortunately, many consumers are caught off guard because they were not properly informed about these types of loans.  These creative mortgage loans, along with other economic factors, have contributed to an alarming increase in foreclosure. 

More Foreclosure Topics

• What is foreclosure?
• How can bankruptcy stop foreclosure?
• Can I stop a foreclosure without filing bankruptcy?

Topic: Rising Foreclosures

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