Foreclosures Reach Record Highs
Free publication outlines options when behind on mortgage
For Immediate Release: June 26, 2003
ROCKVILLE, Md. — With unemployment reaching the highest levels in years and a sluggish economy not offering any relief, more Americans are finding themselves facing foreclosure than ever before. According to the National Delinquency Survey by the Mortgage Bankers Association of America, more than 400,000 households were in foreclosure in the second quarter of 2003.
"Over the last few years there has been a mortgage boom with more and more people taking out larger loans," said Steve Rhode, president and co-founder of Myvesta.org, a nonprofit financial management organization. "As people take out bigger mortgages and stretch their finances to the limit, it's no wonder they can't afford their payments in times of financial crisis."
According to Rhode, one of the worst mistakes people make when falling behind on their mortgage is not being honest with their lender.
"Many people make promises they can't keep in an effort to keep their home," Rhode said. "Most lenders have programs to help people who have fallen behind and it's important to be open and honest up front. If you over promise what you can afford to pay and don't hold up your end of the deal, your lender will become much more difficult to negotiate with."
Rhode offers these tips to help when falling behind on your mortgage:
- Find money to get or stay current. Many people never consider borrowing money from friends or family to get through a tough time.
- Contact your Private Mortgage Insurer. If you were required to purchase private mortgage insurance your insurer may lend you money to become current on your loan and avoid foreclosure.
- Get professional help. Professional mediators and negotiators can help get your situation under control and negotiate terms that you, and your lender, can both find satisfactory.
For help on what to do when coming up short on mortgage payments, read the Myvesta publication, "What to do When You Can't Pay the Mortgage." It can be downloaded from Myvesta.org online.
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MyvestaSM is dedicated to helping people create healthy financial lives. The organization provides a wide range of materials to inspire and inform people so that they can break down their barriers to financial and personal success. For more information visit Myvesta.org online.
