Falling behind on mortgage payments?

We are in unfortunate times right now with the foreclosure rates moving higher daily.

Much of this is blamed on subprime mortgages and adjustable rate mortgages by the mainstream media.

I would like to suggest some additional factors that have not been mentioned in the mainstream media...

Americans, on the average, don't budget for a rainy day.

When I interview people to place them in mortgages I often see

• multiple maxed out credit cards (most of which are at much higher interest than mortgages) ,
• multiple cell phones per family (these bills add up)
• loans on vehicles - many times these are for SUV's which additionally are less efficient on gas mileage and with gas prices increasing these cost more to drive and have more expensive tires, etc
• higher insurance costs due to full coverage requirements on vehicles with liens
• due to maxed out debt, credit scores drop and it is known that insurance rates are also based on credit scores - lower scores = higher rates
• most households have cable/satellite dish, internet service (dsl or cable connection), a land line (in addition to multiple cell phones)
• entertainment venues - concerts, ballgames, dining, etc - have all become more costly. It is difficult for the family to "go out to the ballgame" for less than 50, maybe 100 + bucks a pop
• Couple this with no savings in the bank, no investment accounts, etc - nothing to fall back on when one is pink slipped

I'm not picking on anyone - most of us are guilty of trying to keep up with the Joneses and want to treat our families to all the wonderful things out there...at what expense? Losing our homes? All these expenses add up. Most, if not all, are "optional" expenses - not necessary for living, although they certainly are nice to have.

Most schools do not teach life skills, budgeting, etc. As professionals we need to step up to the plate and be honest with our clients and tell them the score. I feel because we work in this industry everyday financing scenarios, credit issues, and the like seem "commonplace" to "us" and we think everyone knows what we do.

If we want to help the economy and our industry it becomes our responsibility to try and educate our clients. True, many don't want to hear it and can't live without these things, still, we must try.