Millions of homeowners are now finding this out the hard way. The American dream for years has been to own a home. Financial advisors will generally tell you that a home is the best investment that you can make. Lenders will convince you that homeownership has so many positives.
What the advisors are telling you is not necessarily false, but they are omitting the downside of homeownership: if your saint louis gets foreclosed on, you will lose thousands of dollars. Real estate agents that specialize in foreclosures and foreclosure prevention are just a click away.
Our previous blog post is about why people in saint louis lose their homes to foreclosure.
The danger of losing your home exists because a home is actually a short term liability or risk. The foreclosure statistics are overwhelming. A report from realty trac shows that in the 3rd quarter of 2009: default notices, scheduled auctions, and bank repossessions were reported on 937,840 properties in the third quarter alone. This is a 5% increase from the 2nd quarter of 2009 and an increase of nearly 23% since this time last year. One in every 136 U.S. housing units received a foreclosure filing. [i] To give you an idea of how enormous this problem has become, the FDIC did a report back in 2005 when 1 out of every 200 homes were at risk of foreclosure. When this was the case, “One child in every classroom in America is at risk of losing his/her home because their parents are unable to pay their mortgage.”[ii]
The problem is much worse today as I write this article in the fall of 2009.
[i] http://www.realtytrac.com/contentmanagement/pressrelease.aspx?channelid=9&accnt=0&itemid=7706
[ii] http://www.fdic.gov/about/comein/files/foreclosure_statistics.pdf