Question:

What are the recent mortgage foreclosure rates?

Answer:

Mortgage foreclosure rates in the US have significantly increased during 2007. It's the housing market boom that left people in costly houses with loans they can't afford to pay. Mortgage foreclosure rates have gone up with over 70% compared to the previous year.

Mortgage Foreclosure Effects

Those who suffered the highest mortgage foreclosure rates were mainly couples who took up a large loan with confidence and then one of the partners lost their job. Expensive utilities and electricity is also considered a reason that led many households lose their home to a foreclosure. Also, inexperienced borrowers who took an ARM with very low rates and could not adjust to the higher rates are also facing foreclosure on a grand scale. ARMs are tricky to handle, and if borrowers were not aware of the subtleties, no wonder they find it difficult to cope with adjustable rate mortgage payments after the fixed term expires.

Mortgage foreclosure rates are also specifically high for US areas where housing market rates went down and home depreciation made it difficult for homeowners to cash on their equity.

Anything good about foreclosure?

These high mortgage foreclosure rates may be bad for some, but allow for a real estate investments boom as properties can be acquired for a fraction of their original price.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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