If you are one of the many people who bought a home with a teaser adjustable rate mortgage, you may now have or could have in the near future, a mortgage that is simply too high for your income.
Home prices are falling in most of the country and home sales are slow thereby making it very difficult for homeowners who find themselves among those unable to keep up with rising interest rates to sell their homes. Some homeowners have prepayment penalties making it difficult to refinance to a fixed rate mortgage.
Foreclosures are up for the third quarter of 2007 by approximately 30% compared to the second quarter of 2007. Adjustable rate interest rates continue to rise and many homeowners are not able to pay the higher mortgage payment.
Foreclosure can ruin a credit rating which can then result in making it harder to find a job, more expensive to purchase insurance and harder to rent a home among other things. Some homeowners find themselves in the situation of facing foreclosure but wait too long to act making the situation even more difficult. More options are available to homeowners who act quickly.
If you find yourself in this situation, one option is to find a local home buyer in your area that specializes in buying preforeclosures. Local home buyers help homeowners sell their home fast and can help them out from under the financial stress of a mortgage they are unable to pay.