Because so many banks are facing massive losses from loan defaults many are desperate to quickly dump delinquent debtors into the foreclosure process. According to an article published in the San Francisco Chronicler some banks are less willing to re-negotiate the terms of loans that are in default or delinquent.

The San Francisco Chronicler says: "As Wachovia Corp. struggles under a souring portfolio of loans inherited from an Oakland company, the nation’s fourth-largest bank is proving among the least willing to modify mortgages in ways that would help local borrowers hold on to their properties, housing rights groups claim."

This is not surprising, Wachovia recently suffered under suspicions that it would be one of the next banking titans to fall, sending its stock values into a nosedive. But whether Wachovia fails or not, those that suffer the most under this tightening credit noose will be regular homeowners who find themselves facing out of control inflation in nearly every area of their life from food to gasoline and home heating and cooling costs. As the money gets tights many panicked homeowners are turning to desperate measures, bad refinance loans and eventually foreclosure.

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