Borrowers in Default

There are many reasons a homeowner may fall behind on their mortgage. Even though a borrower has been responsible and has met their obligations for years, we can all experience a sudden life change that precludes us from being able to meet our obligations. Let’s take a look at some of the circumstances surrounding mortgage default and foreclosure in today’s market.

Reasons for Default

Sub Prime Loan with High Interest Rates	Unexpected Job Transfer
Adjustable-Rate Mortgage (ARM) New Higher Interest Rate	Have gone from two incomes down to one (i.e. divorce, death of family member)
Zero Down Loan: Overextended	Can’t keep up with rising taxes or insurance
Loss or Reduction of Income	Mortgage Fraud