| The sub-prime mortgages are largely responsible for | | | | were timely introduced when there was a booming |
| the millions of house foreclosures sweeping untamed | | | | demand in housing. Many fell for predatory lending |
| across the length and breadth of America. Despite | | | | while others invested thinking that by re-selling the |
| various measures and moratoriums the galloping of | | | | house at a near future date dues will be cleared and |
| house foreclosures continue apace with no signs of | | | | quick profits made. But the bust betrayed all |
| letting down. It has dragged down the real estate | | | | calculations causing this unprecedented spike in house |
| market and that in turn has affected the general | | | | foreclosures. |
| economy. The housing industry is gearing to a halt | | | | The house foreclosure victim should not panic |
| causing a chain reaction of shut down firms and | | | | because there are many options of escape. The first |
| joblessness. This is causing more house foreclosures. | | | | thing is not to panic but to contact the lender for |
| The first task of President Barack Obama will be to | | | | negotiating a modification of the loan. Help can be |
| address the problem to house foreclosures - it holds | | | | taken of certified housing counselors to open |
| the key to solving other related problems. | | | | communication lines between the borrower and the |
| Currently it is the residential mortgages that have been | | | | lender. The borrower should be cautious about not |
| worst hit. But waiting in the sidelines to hit the economy | | | | falling into the hands of rescue scammer who promise |
| like a bombshell are commercial foreclosures. This will | | | | but do not help. As per the law nobody can take |
| cause the shutting down of jumbo complexes and | | | | money as fees without preventing foreclosures. The |
| consequent job loss injuring retailers and wholesalers. | | | | HUD qualified counselors do not charge fees. |
| House foreclosures can also happen if property taxes | | | | Among the options the loan might be modified to a |
| are not paid timely. Then the government places a tax | | | | long term one with less rate of interest. The lender |
| lien on the house giving a specified time frame within | | | | might even waive a part of the principal and allow |
| which the dues with penalty have to be paid. If this is | | | | short sale of the foreclosed house. In the tight market |
| not done then the tax agency of the government | | | | the price is sure to be less than the loan amount. But |
| forecloses on the house and realizes the dues by | | | | by agreeing to a short sale of house foreclosure the |
| selling the unit. | | | | lender avoids the expenses and hassles of running |
| Foreclosures are nothing new but the recent spate | | | | through the process and the borrower escapes the |
| has been caused by the introduction of the sub-prime | | | | slur of a foreclosure in credit ratings. |
| mortgages. These were designed to help those who | | | | House foreclosures allow good opportunities for many |
| did not qualify for prime traditional mortgages to get an | | | | to buy affordable houses at bargain prices. Thus |
| opportunity to own a house. The sub-prime mortgages | | | | house foreclosure is not bad news for everybody. |