Over 100,000 foreclosures for 5 straight months

December marked the 5th straight month that over 100,000 Americans lost their home?in foreclosure. It is a statistic that is all to real and is hitting close to home for many of us.

The main culprit is the subprime adjustable rate mortgages which have made borrowing easy for many Americans. The low monthly payment seems very attractive and will get many of these borrowers into the home but as the loan converts to an adjustable the payment shock hits and the decline begins.

Normally, a homeowner in this position would simply sell the property to avoid foreclosure but with the pull back in values this has become a very narrow window of opportunity. Certainly, those who financed 100% of their home and went into an adjustable are having issues. This is a drastic number of individuals. Those who purchased in 2004-2005 and financed 100% are in a bad spot. They will need to hold on for another couple of years and in an adjustable mortgage that can be a death sentence.

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