Foreclosure news continues to dominate national headlines as the unemployement rate keeps climbing.  Reports say that almost 6% of homeowners are either in the rears on payments or at the cusp of foreclosure.  This number has doubled as compared to just a year ago.  According to the Mortgage Bankers Association, it is very alarming to see that the rate of troubled homeowners have doubled in the past year.

In April, 342,000 properties in the US were foreclosed.  California posted 96,500 of the total foreclosures of the country.  Data is cited from RealtyTrac – a web-based company.  Reportedly more than 600,000 senior citizens are also either delinquent or have already been foreclosed on.  AARP reports that older Americans, the ones that have subprime first mortgages, are 17 times more likely to have their homes foreclosed than Americans, of the same age, having prime loans.

The community is dramatically impacted by subprime loans and their much increased rate of foreclosure.  This was illustrated in a recent study showing that areas which had large numbers of subprime loans also had increased numbers of foreclosure filings as well.  The foreclosure news seems to dominate the airways and subprime loans account for nearly 50 percent of those cases.

Researchers tried to study other factors which could affect the number of foreclosures in an area.  They considered home value, race and income but arrived at a conclusion that subprime lending is the major factor for foreclosures.  Unemployment also added to the increase of foreclosure rates.  People don’t have enough income to keep up with their mortgage.  That’s why MS Foreclosure and other areas as well are skyrocketing.  Because of this, the Federal Reserve Bank of Boston recommended that unemployed homeowners should be given more focus by policies that aim to fight foreclosures.

Many more Americans are still at risk of having their properties foreclosed. (Note: When doing your research online make sure to search for ‘forecloser‘ as well as it is a very common miss-spelling.)  The government is trying to assist with various policies and legislation, but it is unclear on what impact it will have.  And the progress of these programs is still nowhere to be found because it takes more time than unexpected.  Many Americans simply do not have that long to wait.

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