New year in 2008, executions were recorded 2.3 million U.S. properties. This is an increase of 80% from 2007, and also represents a 225% increase since 2006. These findings were made by RealtyTrac U.S. Foreclosure Market Report on January 15, 2009. The growing number of foreclosures has sent ripples through the banking and housing to millions to feel the effects.
According to the study, California, Florida and Arizona posted the highest total exclusion for 2008. California posted a total of 523,624 properties for the presentation of foreclosures in 2008. This is the highest of the nation state. activity of foreclosure in California increased by nearly 110% since 2007. Furthermore, this number represents an increase of almost 498% since 2006. Florida ranked second nationwide with 385,309 properties receiving a foreclosure filing in 2008. This represents an increase of 133% since 2007 and nearly 412% since 2006. Arizona came in third with 116,911 properties coming to the filing of a foreclosure. This number represents an increase of 203% since 2007 and 655% since 2006. Other states in the top of the bracket 10 runs were the following: Ohio, Michigan, Illinois, Texas, Georgia, Nevada and New Jersey.
Foreclosures and mortgage delinquencies are expected to continue increasing due to mounting job losses and a weak economy. The national unemployment rate stood at 7.2 percent in December 2008 at its highest level since 1993. In general, the U.S. lost 2.6 million jobs by 2008.
With all the pessimism in the housing field, there is a ray of hope for senior homeowners 62 years of age or older. This hope comes in the form of a mortgage HECM (Male Equity Conversion Mortgage) or vice versa. As the owner of a high-level home has taken a reverse mortgage, you need not worry about rising foreclosure rates and whether or not be able to meet their mortgage obligations. With a HECM reverse mortgage, monthly mortgage payments that are not needed at all.
Borrowers can stay home for their lives. They never have to worry about making a mortgage payment. They just need to keep the property in good condition, pay property taxes and keep their homeowners insurance.
Now may be time to explore the option of reverse mortgages for seniors who currently have a reverse mortgage. No matter even if the older person is a little behind on their mortgage payments, the principal may still qualify for a reverse mortgage. To qualify, borrowers must be 62 or older, must occupy the property as your principal residence and not currently in bankruptcy.
The money from the reverse mortgage can be used by the owner of the main house as he or she sees fit. The money is available as a flat monthly fee or a single payment to be reversed as well. Older people can still enjoy the occupation of the residence as long as they live and not have to pay the mortgage payments after taking back the reverse mortgage. The lender will pay up!
So in these difficult economic climates, older people looking for a little break in their tight financial budgets can consider opting for reverse mortgages on their properties.