Is Foreclosure the Banks Fault

Jan. 12, 2011 - PRLog -- Foreclosure Awareness - Arlington VA House Buyers: There are two schools of thought where foreclosures are concerned. One side says it is the lender’s fault for accepting a mortgage contract from someone who would surely default on the mortgage contract. Not requiring down payments or allowing a second loan to pay for the down payment, not verifying pay information, and giving loans to just about anyone who walked in the door has indeed created a glut of homeowners who cannot keep up. Yet mortgage loans were flowing like water from a faucet for several years.

Just about anyone could get a loan. In fact, some lenders were giving loans that perhaps the borrowers could afford at that time, but included a provision that would certainly raise their mortgage payments beyond affordability in the future. The ARM loans, adjustable rate mortgage, change interest rates when the rates go up or down and the mortgage payments reflect those changes. The changes in interest went up, raising the payments beyond reach.

The other school of thought is that the borrower must beware. The old adage stands true no matter what the deal is you sign for. It should be particularly important when you purchase something as big as a house. Borrowers seemed determined to buy those houses whether they would be stretched financially or not. Instant gratification is paramount here. When a couple, no matter how young, marries and starts a family they want the 4 bedroom house that their parents may have had raising them.

In the past, though, their parents would have most likely started out renting a tiny apartment, then buying a small home if they were lucky, only to move up to the bigger home after becoming established later in life. The down payment would have been saved for and sacrifices made. Today’s young people don’t want to wait and coupled with the lenders so anxious to hand them a house, there is now a huge foreclosure problem.

Whatever the reason for it, if you are in foreclosure and are looking for a way out and a fresh start, you can try calling a real estate investor. They buy houses for cash, even those in foreclosure, and the whole process can be complete in as little as a week in many cases. Keeping the foreclosure off your credit record is important so you will have some credit left to begin your fresh start with.

American Renewal Properties is a Northern Virginia real estate solutions company that buys, fixes and sells residential real estate in Virginia and the metro-DC area. We work with people who as a result of specific stressful circumstances, must sell their houses. http://www.webuyhouses-nova.com

We strive to assist individuals in getting out from under the burden of excessive house payments while at the same time saving their good credit so they will be able to make a fresh start unhindered by credit blemishes. American Renewal Properties specializes in buying these houses headed for foreclosure as well as selected bank-owned properties and general owner-initiated sales. http://www.webuyhouses-nova.com

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American Renewal Properties http://www.webuyhouses-nova.com, is a Northern Virginia real estate solutions company that buys, fixes and sells residential real estate in Virginia and the metro-DC area. http://www.webuyhouses-nova.com