The mortgage market in the US is turning into bad news for many families. The number of homes entering foreclosure continues to set new records and the worst has yet to come predicts experts at the Mortgage Bankers Association.

Over 5% of mortgages are currently past due from missed payments and homeowners are just barely holding on to their homes. Less than 1% have reached the actual foreclosure stage where the families are forced out of the home and it is sold at auction.

Of primary concern are those homeowners that don’t take action soon enough to research what their options are before it is too late. I guess a silver lining to facing the loss of your home due to foreclosure at the moment is that with so many behind, the lenders are willing to consider professional and realistic offers, rather than just take the home back.

This mortgage crunch has caught a lot of people in a difficult position. Between those in the loan industry that are losing their jobs in record numbers, people with good credit and bad credit are finding it tough, if not impossible to either purchase new homes or refinance their way out of escalating interest rates in adjustable rate mortgages (ARM) that they took out a few years ago.

In Kansas City a disproportionate number of lower-income and nonwhite borrowers are stuck in higher-interest subprime loans, making them more vulnerable to foreclosures, a study says. The study by ACORN found that African-American homebuyers were 2.9 times more likely than whites to receive a high-cost loan, and Latino homebuyers were 1.5 times more likely than whites to get a high-cost loan.

With over 30% of all loans originated in Kansas City and Lansing, Michigan are labeled as sub-prime loans which makes it even more likely that those homeowners are at a much higher risk of foreclosure. Apparently, while the banks were supposed to be screening sub-prime borrowers, they were applying flawed screening formulas which did not adequately protect lenders from risk. One might argue that greed forced an override of common sense and now many that would never have imagined the loss of their home from foreclosure are facing just that reality.

Foreclosure Assistance – Avoid Foreclosure

At times like these, consumers need to be wary of scammers that might take your money without delivering results. Some desperate homeowners have paid thousands of dollars for foreclosure assistance and still faced the loss of their home. Others have signed over their homes in hopes of avoiding eviction, getting kicked out of their homes, only to find these rent back schemes can result in higher rental payments and the eventual loss of their home anyway.

As with any financial crisis, you should always look for assistance from someone you are comfortable with, trust your gut instinct and do your homework and research before jumping into any solution.

If you are facing foreclosure and would like to obtain a free telephone consultation to see what can be done to help you avoid foreclosure and avoid the loss of your home, help can be found here. 

You could also find and talk to a local attorney to help discover what legal remedies, if any, might be available to help you keep your home.