There are more reasons to understand the foreclosure process in the US than ever before. In September, 2008 alone there were 81,312 homes that were lost to foreclosure. The 3rd quarter of 2008 showed a 71% spike in foreclosure rates as compared to last year at this time. These are record-high numbers and it should be obvious that lenders do not want this trend to continue. Still, the fact remains that over 851,000 homes have been repossessed since August of 2007. The housing crisis in America is smothering homeowners – along with the rising costs associated with fuel. People are being financially crippled and hundreds of thousands are falling under every day.

In September, 2008 there were over 265 thousand borrowers that received notifications of foreclosures. Although that number is down 12 percent from August, it is still a 21 percent increase from one year ago. Many times in the past have shown foreclosures to be a result of a weakened economy. This current cycle of foreclosures has in fact caused an economic downturn.

As a result, many states have relaxed their housing laws to slow the rate of new foreclosure filings. This accounts largely for the 12% decrease from August to September. Lenders are now being required to give significantly more lenient notices before initiating the foreclosure process against borrowers. Other law changes are being made as well in favor of the borrowers, but financial analysts fear that even these new relaxed laws are simply putting off what will soon happen anyway.

The effect seems to be that when borrowers receive a longer-term notice before the foreclosure process is initiated, they simply seem to get further buried in their debt. With each passing month, mortgage payments, late fees and costs associated with the foreclosure process continue to mount, and the borrowers are simply overwhelmed. They cannot catch up and so after the notification period extinguishes, foreclosure rates spike again.

The Federal Housing Authority initiated the “Hope for Homeowners” rescue bill on October 1, 2008. It was designed to re-instill investor confidence and absorb some of the poisonous debt that has accumulated. The US Treasury is also buying up troubled loans in an attempt to re-stabilize the various lending entities. As a result, it is projected that by the end of 2008, between 25% and 33% of all homes will be owned by banks and backed by the Federal Housing Authority.

The new laws in many states concerning the foreclosure process give temporary reprieve to tens of thousands of borrowers. It is highly advisable to take advantage of this leniency if you are one of those who are threatened with foreclosure. Consult with a qualified foreclosure consultant and explore the options that exist for saving your home. Many times, a professional foreclosure consultant can show you ways to have the foreclosure process negated and allow you and your family to stay in your home. To learn more about the foreclosure process and your rights regarding it, please visit Stop Foreclosure Help Today. We can help you to keep the home that you have worked so hard for.



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