Avoid Foreclosure

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Foreclosures: Blame It on Second Mortgages Mortgage lenders are tightening their underwriting standards as more homeownership ends in foreclosure, but a new study suggests that the popularity of second mortgages could undermine their efforts. New data in a research report from securities firm UBS shows that nearly half of all loans delinquent for more than 90 days this year also have second mortgages, while 30 percent of loans that are current have them, according to the UBS report. "Mortgages that have a second mortgage behind them run a far higher risk of default," says Zach Gast, a financial analyst in Rockville , Md. , for the Center for Financial Research and Analysis, an independent research group. Gast says borrowers' debt-to-income levels are similar for all mortgages, regardless of whether payments are late or current, suggesting the second mortgages are pushing borrowers into delinquency or default. Source: The Wall Street Journal, Karen Richardson Truth be told too many people have over leveraged their homes. I have seen re-fi appraisals with a value 20% higher then the actual fair market value. So for that person to sell there home they would need to come up with around 31% or the homes value to sell.  That is crazy. Considering most people can't come up with  even 5% down.      That being said almost every Foreclosure is avoidable.  Avoiding foreclosure befits all involved. Banks lose an average of $40,000 om each foreclosure. The borrower has to deal with ruined credit for the next 5-7 years, the shame of losing there home.  Most foreclosures can be avoided.      I have a system to help borrowers avoid foreclosure. If you want more information send me a message from my website http://www.desmoinesdownpayment.com