Foreclosures At All Time High

Recent reports say that mortgage foreclosure rates were at an all time high last year, mostly due to subprime adjustable rate mortgages. No surprise there. I am seeing this every day “in the trenches.” Many of the callers to my firm are homeowners who bought a property around 2005 or 2006 with 100% or close to 100% financing. Some did 80/20 loans with poor terms on the 20% part. Most have maxed out their equity, thus eliminating selling or refinancing as a way out of foreclosure now. Chapter 13, loan modifications, forbearance agreements, and short sales look to be the main alternatives for many during 2008.