Hermosa Beach, CA (PRWEB) October 30, 2006
According to LoanAgentsLive.com, thousands of homeowners who purchased property early in the new millennium now face tougher times as their low introductory rate mortgages adjust. Some industry experts have speculated that more than 30 percent of homeowners who financed their homes with Adjustable Rate Mortgages (ARM's) in the early 2000s will soon face increased mortgage payments that they won’t be able to pay.
This could force hundreds of thousands of homeowners nationwide to either refinance their homes into long-term locked rates or try other “tricky” adjustable rate loans to avoid foreclosure. Thousands more could be forced from their homes as lenders begin foreclosing on properties because of missed mortgage payments.
The effects are already starting to show. A recent RealtyTrac survey reported that 115,292 properties went into foreclosure in August -- up 53 percent in 2005.
The foreclosure problem is a direct result of irresponsible borrowing and lending practices. Creative financing options, such as ARM’s and interest-only loans, have created opportunities for potential homeowners to purchase bigger, more expensive homes than they can afford. Low introductory rates are appealing to consumers, but all too often, new payments become unaffordable when rates adjust.
Compounding the problem, home values throughout the nation are stagnant or slowly falling. Having little or no equity in a home can make it virtually impossible to refinance, especially for homeowners who have less-than-perfect credit. This could leave many homeowners with only one option to avoid foreclosure -- come up with the money.
LoanAgentsLive.com offers mortgage-seeking consumers a simple and secure way to chat directly and anonymously with a Loan Consultant from the Lender of their choice. The Web site is free for consumers, and it does not require phone numbers or e-mail addresses for live advice from licensed mortgage companies and home loan consultants nationwide. For assistance in evaluating mortgage situations, or to receive answers about mortgage, home loan, refinance, home equity, debt consolidation, reverse mortgage or foreclosure, visit http://www.LoanAgentsLive.com.
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