What are the most common causes of foreclosure?

Top 7 Causes for Foreclosures

Adjustable rate loans. Many homeowners are tempted by the low payments and interest rates, but are caught off guard once the cost accelerates alongside the interest.
Unemployment.
Credit card debt.
Medical expenses and illness.
Divorce.
Multiple bills.
Sudden relocation.

Should you keep your closing documents forever?

The U.S. government recommends that you hang onto any deeds as long as you own the property, but if you’ve paid off your mortgage and the deed to your property has been recorded in land records, the documents can be tossed. That’s because most municipalities have copies of these documents available online.

What was the increase in foreclosure filings in 2008?

In what direction will gas prices head in the next few months? NEW YORK (CNNMoney.com) — U.S. foreclosure filings spiked by more than 81% in 2008, a record, according to a report released Thursday, and they’re up 225% compared with 2006.

Where was the hardest hit state by foreclosure in 2008?

And S&P’s chief economist, David Wyss, expects home prices to continue to decline, bottoming in early 2010 roughly 33% below their 2006 peak. The three states hit hardest by foreclosure in 2008 were Nevada, Florida and Arizona.

When did the foreclosure crisis start in the United States?

Both of the government-sponsored mortgage giants suspended foreclosures starting November 26, 2008 through January 31, 2009. The devastating numbers are unlikely to improve soon. “I don’t see how we can avoid three million foreclosures again in 2009,” said Rick Sharga, a RealtyTrac spokesman.

Why are so many people losing their homes to foreclosure?

And adding a flood of bank-owned homes to already slow markets further outstrips demand and dampens prices, creating a spiral of lower prices and higher foreclosures. As a result, more homeowners who fall behind on their mortgage payments end up losing their homes, according to Jay Brinkman, the chief economist for the Mortgage Bankers Association

What happens to excess proceeds from a foreclosure sale?

But the last known address is usually the foreclosed property. Because most people don’t realize they’re due any excess proceeds, they tend to vacate a foreclosed property without leaving a forwarding address. So, it’s difficult for a trustee or other sale officer to find foreclosed homeowners after a sale.

Who is the high bidder at a foreclosure sale?

At the foreclosure sale, the high bidder might be the foreclosing lender or a third party. If the lender makes a credit bid and no one else makes a higher offer, then the lender gets the property, and it becomes REO.

Where does a foreclosure sale usually take place?

In the past, foreclosure sales almost always involved an auctioneer selling the property from the courthouse steps or another public area. Now, the auction can either be live (in-person) or online. Online foreclosure sales are becoming more and more common.

What happens to the house after a foreclosure?

After a borrower defaults on mortgage payments, the lender (or the subsequent loan owner) will likely foreclose. Most foreclosures end in an auction where the property is sold to a new owner.

The Most Common Causes of Foreclosure Foreclosure is the process by which lenders recover a loan by repossessing the property that the loan was for and reselling it to recoup loss. A lender has the legal right to foreclose a home when a borrower fails to make mortgage payments over an extended period of time.

Can you buy a house after a foreclosure?

Losing a home through a foreclosure can be a troubling experience. Many that go through this process feel a sense of hopelessness about becoming a homeowner again anytime in the near future. Fortunately, the opportunity to purchase a home again after a foreclosure is becoming much easier.

When does a lender have the right to foreclose a home?

A lender has the legal right to foreclose a home when a borrower fails to make mortgage payments over an extended period of time. Here is a look at some of the most common causes of foreclosure.

Is there a waiting period after a foreclosure?

Conventional Loan Foreclosure Waiting Periods There’s a seven-year waiting period after a foreclosure with a conventional conforming loan for both Fannie Mae or Freddie Mac backed loans. Both allow for a lesser waiting period with applicable, documented extenuating circumstances, though.

When does the foreclosure process begin for a home?

A foreclosure occurs when a homeowner defaults on her mortgage payments. The process typically begins after the fourth missed payment with the issuance of a Notice of Default.

A lender has the legal right to foreclose a home when a borrower fails to make mortgage payments over an extended period of time. Here is a look at some of the most common causes of foreclosure.

What to do if you have a foreclosure due to illness?

If your illness is a short-term one and you will be able to pay the mortgage company back before too long, you may be able to negotiate a new deal. If you can’t defend against the foreclosure, pay the past-due amount or negotiate new terms for your mortgage, you’ll have little choice but to leave the property.