It is apparent that the country is entering a period of financial instability, major negative financial factors affecting the economy.
These factors are; the increase in interest rates, depressed home values, higher credit card minimum payments, increasing gas prices and the recent Wall Street crisis.
The present credit crisis was fueled by country wide home loans being given to low-income families for over-valued homes. Now the storm has hit as many first time home owners who are finding their home is worth less than their mortgage!
When these facts are combined with the crazy rise in the price of fuel, it is easy to imagine that a lot of families will be hit hard and probably be forced into foreclosure and eventually bankruptcy.
Most people are unaware of the clause in mortgage contracts giving the lenders the right to call in the country wide home loans if they are in arrears.
As for your credit card debts, the credit card companies have now doubled the minimum payments required which imposes a further burden to the borrower.
If you cannot meet your minimum payment the lenders will offer to consolidate your debt by taking your home equity as security. Should you accept this debt consolidation help and are in default then the bank will be entitled to foreclose your home! We are seeing an all time high for foreclosures in Indianapolis, Atlanta and all around the country.
As interest rates continue to go up and the credit crunch continues to bite, we will see a glut of foreclosures like what we saw in the 1980’s or even worse.
Tags: Add new tag, california home equity loan, Country Wide Home Loans, first time home buyer grants, first time home owner, florida home loans, home business
