The 2007 U.S. Census figures show that for over 15% of all Americans, half of their paychecks are allocated to housing expenses. This is a rise of over 400,000 Americans since 2006.
Even those with good incomes are seeking help to pay debts. The combination of the mortgage crisis, credit crisis, rising unemployment, high fuel cost and high price of groceries can all negate even good incomes.
A survey by the CCCS in Atlanta determined that 5,500 families seeking budget assistance or credit counseling in August averaged spending $638.00 for food and fuel. In January this number was 20% less. The survey did distinguish that food prices for August were higher, despite lower fuel prices. These families had an average household income slightly above 49,000.
Could this fact be forcing people to choose between medicine and food or paying a mortgage note or buying gas for work? Either way, the person is at a loss. If they lose their job from lack of gas, they can't pay the mortgage. If they pay the mortgage, they loose their job. Missing payments destroys credit, making it nearly impossible to refinance.
Rising interest rates are exploding monthly mortgage payments. This further strains budgets. The same survey found that the homeowners that sought credit counseling were reporting monthly housing costs of $1,423. This is 25% higher, than 12 months ago.
If you do not have a penny left from your paycheck, you have two options: Cut the budget further or increase income.
Here may be a list of options:
Plan a family meeting to discuss the budget, and be honest with kids about dire times. They will probably be glad to help out.
A mortgage is nothing more than a loan. Like most loans, it requires some collateral (the thing you'll lose if you don't pay the lender back). In this case, the collateral is a house or apartment you want. A bank lends you money to buy a house, and if you don't pay them back when they say to, they get to seize the house, put you out on the street, and sell your home so they can get their money back.
The Federal Reserve has proposed a new set of lending regulations designed to help protect borrowers. In an effort to tighten up some of the questionable lending practices that are being blamed for much of the current credit crunch, the Fed is calling for stricter guidelines for mortgage lenders.
Although it may seem overwhelming, the mortgage foreclosure process is actually easy to understand. This article breaks down a typical foreclosure process, stage-by-stage from beginning to end.