stopping foreclosure One thing I have picked up after trying to figure out why this real estate melt down happened through schooling and on the job experience is that stopping foreclosure should start way back in the beginning when securing a loan. The majority of people stopping foreclosure today have adjustable rate mortgages. These loans work on an interest index, which rises or lowers according to economic forces. Many turned to these because at first the rate was great and then the economy shifted, interest rates jumped, equity diminished and jobs began harder to keep. It was the perfect storm for falling behind on a mortgage and a reason Loan Modifications Companies have increased in recent years.

My mom always said she was only comfortable with fixed, amortized 30-year home loans. Knowing what to expect is half the battle is what she taught me. There are also partially amortized loans, which at the end of the term call for a final, larger balloon payment and the list goes on. All these lending varieties came after deregulation of the market creating much more competitive lenders. Stopping foreclosure for any homeowner should start when securing a loan even though this is the time when stopping foreclosure isn’t even a possibility on the mind.