Bye, Bye Miss American Pie . . .(Foreclose, the loss of the American Dream)
By Cynthia Sloop
(Community Association Manager)
We read about it in our newspapers, hear about it on the news and have seen it in our neighborhoods. Foreclosures are on the rise. Unfortunately, Indianapolis, Indiana has been in the top 5 states for the last couple of years. Why is this happening more and more and what can you do to keep it from happening to you?In a recent study by the Center for Responsible Lending it was found that 2.2 million homeowners may face foreclosure. Part of this is due to the sub-prime mortgage market.There's a number of factors that go into the sub-prime market yet the majority of the problems come from high-risk loan features mixed with ARM products that start out with a low rate that then rises to higher rates as time goes on. Mix this with prepayment penalties, low-documentation requirements and ...