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Foreclosures Appear to Be on the Rise

[May 22, 2007.]

 

The downturn in the nation's volatile real estate market appears to be continuing, according to news reports about foreclosure rates.

For instance, in New Jersey, more homeowners are failing to make their mortgage payments, based on public records from the first three months of 2007.

When homeowners are having difficulty meeting the monthly mortgage, they have three options: default, sell quickly, or negotiate with their lender for new loan options.

Court records indicate that foreclosure lawsuits in New Jersey will increase 50 percent this year. The estimated total for 2007 is 36,000 - a substantial increase over 2006's total of 23, 875.

Some observers say that the housing market seems to be experiencing a slump not seen since the era of recession in 1992. Experts blame the housing downturn, in part, on rising gas prices, which are sapping much-needed funds from household budgets. When homeowners have to pay exorbitant gas prices, they may have difficulty meeting their mortgage obligations.

In an effort to stem the foreclosure tide, the state of New Jersey has unveiled a $30 million project offering mortgage loans for those who are having difficulty with their adjustable rate and interest-only loans.

But the big question at this point is: Will the housing slump continue? Forecasters admit the housing market could go either way. One big problem has been house refinancing-as families have refinanced their homes in order to deal with medical bills and other debts, they have increasing trouble paying their mortgage bills.

In many areas, the housing market is flooded-meaning that the number of available homes outnumber prospective buyers. Potential buyers, meanwhile, are banking on the idea that housing prices will fall. In the meantime, banks and mortgage companies appear to be going out of their way to make arrangements to help homeowners avoid foreclosure.

Julie Ann Amos
More Information:


  • How To Tell When It Is A Good Time To Refinance
    With the economy fluctuating as much as it is today, every now and them it produces a time when it is a good idea to refinance your mortgage. You have heard of others making that change, and may have heard that some got a much better deal. Mortgages are different though, and so are people's circumstances.

  • What Is A Home Equity Line Of Credit And Is It For You?
    A home equity line of credit (HELOC) can be a real help to you financially if you need to get a source of money - and have some equity in your home. It gives you various options and a degree of control that you do not have with other type of mortgages.

  • Home Equity Loans - How To Get A Good One
    If you have a home, then you already know that you can tap into your home's equity and use it any way that you want. Many lenders have provided you with a wide variety of ways for you to access that money.

 

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