The Real Estate Fall

In 2008 the real estate market was already in freefall and foreclosures soared to an all time high and they have continued to rise sharply through 2008 and 2009. The huge rise in foreclosures comes as a result of a difficult economy which in part was triggered by a poorly regulated lending industry that made reckless loans and predatory lenders who enticed people into loans they couldn’t afford.

A huge number of homeowners have adjustable rate mortgages and option ARM's that have adjusted over the last 2 years or will adjust in 2010 and for many it is the straw that broke the camel’s back. The prospect of foreclosure is daunting to say the least and many homeowners feel helpless and overwhelmed when they find themselves in this situation and many don’t seek help because of shame or embarrassment.

Unfortunately, many of those that seek help before they get into difficulty with their lender meet with a brick wall. They are told that they are unable to unwilling to help unless the loan is delinquent yet delinquency on a mortgage has an adverse effect on a consumer’s credit and the homeowner is at risk of losing their home to foreclosure. So it would seem that the homeowner is in a no win situation.

In a stronger real estate market most of those families in difficulty with their mortgage today could have simply refinanced or even sold their home and bought something smaller. Unfortunately, the real estate market has seen home values drop by as much as 40% from their peak and is flooded with foreclosed homes and short sales which drives the values down further.

YBA provides its members with an effective range of tools and services designed to help homeowners in foreclosure, pre-foreclosure and those that are struggling to make their mortgage payments each month.

Continue: 2009 Helping Others