Foreclosure Victims

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Before discussing about foreclosure rates we should know what foreclosure is. It is the process in which the legal rights to one’s possessions terminate and auctioning of the property usually follows according to legalities. The debtors on whom foreclosure is imposed are known as the foreclosure victims.

In America with 925,896 foreclosures nationwide, the number of foreclosure victims has soared to 56 percent from the previous year. More than just bankruptcy the victims are also facing a number of problems due to foreclosure. A number of them suffered from heart attacks, without any financial aids to support them. The problem of scams increases in recent times. Apart from all these there is the feeling of social negligence. Often victims are given the respect socially they used to have before being blighted.

Most of the mortgage companies target the vulnerable customers with false and belying advertisements. When in trouble the debtors often accede to sell the houses to a third party who promise to return them back, however in these the equity is totally extracted and the debtors are left with no other choice than bankruptcy. There are cases where the mortgage companies promise to help the clients when to avoid foreclosure providing foreclosure consultations at very high rates of fees. The consultants often just take the cash and are never seen again.

Debtors should be given enough time to explore other options to avoid foreclosure; however it is never that way. Forbearance is a thing not always done by the mortgage companies.

In June this year the secretary of Housing and Economic Development of the Patrick administration Dan O’Connell took the initiative along with government officials and top mortgage firms’ executives from Massachusetts to develop means through which foreclosure can be avoided and the foreclosure victims can be aided. Delinquent Sub-prime loans were accentuated to be the main reason responsible for the soaring rise of foreclosure victims. Borrowers with bad credit history were allowed with high risk loans as they were tempted seeing the initial rates were low. The ravaging effect started when the rates of interest shot up unexpectedly high. Enactment of laws checking the foreclosure rates were suggested by Governor Deval L. Patrick. In April in meeting called by the Patrick administration it was suggested that the State should financially help to refinance loans to reduce foreclosure rates.

Reforms aiming to help the debtors to catch up were planned and corresponding schemes were passed in 2006. The plan targeted to provide defaulting hose owners to catch up by extending the grace time from 60 to 125 days. Unfortunately the plan failed due to some failing officials.

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