The Affluent Have Foreclosure Issues As Well
You don’t have to have a subprime home mortgage loan in order to feel the pain of foreclosure. Right now, affluent homeowners are starting to the feel the pinch of a failing real estate market combined with an economic slowdown (we’re not “officially” in a recession yet — but it sure feels like it to some people).
Indeed, as problems of inflation combine with worries over home values (especially for those who find themselves in a negative equity situation), we are likely to see more and more members of the upper middle class find themselves subject to foreclosure problems — even if they didn’t take subprime mortgage loans. The Mortgage Lender Implode-O-Meter reports on what is happening in the real estate market:
Instead, what’s playing out here is a kind of paralysis, with wide swaths of the market frozen and only the very top end showing signs of life.
This may hint at what’s in store for other real estate markets around the nation that managed to avoid the excesses of the last decade but still find themselves struggling now.
What to do if you are facing foreclosure
If you are facing foreclosure, there are some steps you can take. First of all, talk to your mortgage lender about your options. If you have made most of your payments on time, then you are more likely to get help from your mortgage lender, especially if you demonstrate a willingness to do what it takes to repay your home mortgage loan. You can also look to see what you can do through the government’s Hope Now program.
Also, see where you can cut back. Look honestly at your budget. It is more important to make your mortgage payment than to have cable TV or go out to eat once or twice a week.
Tags: Hope Now, home mortgage, home mortgage loan, mortgage loan blog,
foreclosure, negative equity, subprime mortgage
