Banks and financial institutions don’t want to foreclose the property till it becomes unavoidable because they already have too many non-performing loans in their books. Because of the ongoing global economic crisis, a sudden rise in foreclosure cases is being felt everywhere. Is it the bad economic condition only that is responsible for rise in foreclosure cases or there are many others too?
- Generally the owner owes more than the actual market price of the property. Beside this when a property goes for foreclosure, it further lowers down the property value.
- Many homeowners prefer to ‘Jingle Mail Walk’ by mailing the keys back to the lender and giving up their rights to that property.
- Unemployment and current job cuts are two major reasons for increased foreclosure property cases. Till the economy gets back on the track, we expect the same uptrend in property foreclosures.
- The tendency of spending more than earnings and what is affordable and sustainable while trying to maintain high social status is also one of the prime reasons for increased foreclosures.
There may be several other reasons for foreclosure but if the property owner is seriously interested to save the property from being foreclosed, it doesn’t seem a marathon task. The foreclosure avoiding tactics depend upon individual’s financial condition and future planning.
- As soon as you get the Notice of Default, call Service Loan Modification Services where you will get the right advice. To understand the complete loan modification process click here
Loan modification is being seen as one of the most acceptable and promising solutions to the current foreclosure uptrend by all parties including the Federal Government that has announced incentives for homeowners and lenders reaching successful loan modification agreements. Dealing with foreclosure needs specific knowledge, time and dedicated efforts, so it is better to hire the services of a professional company like Service Loan Modification that deals in foreclosures. Though you would be paying for the services but it is justified by the saved time and increased success rate.