In the current housing market, there are plenty of people who are looking to avoid foreclosure on their family home. There is an ongoing subprime mortgage crisis going on, thanks to the bursting of the United States housing bubble in 2006. Prior to the bubble bursting, many home buyers had taken on adjustable rate mortgages, believing that the trend of rising home prices (which had been consistent in the long term) would continue and they would be able to refinance at more favorable rates later. Unfortunately, many of these borrowers now find themselves in the position of trying to stop foreclosure.
The main issue is that when the bubble collapsed and the housing prices went down, many people were trapped in mortgages that were suddenly much higher than the actual value of the home. This made it almost impossible for them to refinance at a lower interest rate to lower their payments. In addition, many of the people who took subprime mortgages were considered risky borrowers. They ended up having to worry how to stop home foreclosure because they took out a higher mortgage than they could realistically afford. Unfortunately, many lenders contributed to this by offering incentives and encouraging high-risk loans. They too assumed the housing market would continue along the same trends. They were actually the first ones affected by the current crisis, as borrowers became unable to make their mortgage payments. Thus, a real estate short sale or foreclosure became the end result for many home buyers.
With the current economic situation in the United States, the subprime mortgage crisis isn’t over yet. If you are in danger of losing your home, it’s important to talk to experts to find out what can be done. One option would be to consult bankruptcy attorneys in Southern California or whatever area you currently reside in.