When it comes to being in default on mortgage payments, not only is there the fear of possibly losing the home to foreclosure, but the entire process to try and hold on to that home can be quite frustrating and complicated. In fact, the complications that have cropped up in the past are even more proof of just how dysfunctional the current mortgage market is in the U.S.
Realizing that you simply cannot afford to keep up with mortgage payments is hard. There's the worry of just what is going to happen and where you are going to live, and for some, a certain amount of shame realizing that you may end up losing your home.
Over the past five years there have been million of homeowners who have lost their homes to foreclosures. In fact, there have been 4 million homes that have been foreclosed on. And while the majority of these homeowners were your every day type of owner who fell behind on payments, as of recent there have also been an increasing number of the wealthy -- musicians, athletes and other celebrities -- that have also found themselves going through the foreclosure process.
As we previously posted, foreclosures were up when it came to judicial states, like Florida, where a judge is required to sign off on a foreclosure. Now, according to RealtyTrac, this trend of an increase in foreclosure starts continued on for the month of May. In fact, foreclosure starts across the U.S. reportedly showed a year-over-year increase for the first time in 27 straight months.
When a family income is reduced by the loss of employment, underemployment or an unforeseen increase in medical expenses, they can end up getting behind on their mortgage payments. And while bankruptcy is one way to halt a foreclosure, a mortgage modification can also help a person avoid foreclosure.