Foreclosures Are Up

Foreclosures are increasing throughout the nation with Colorado and New Jersey having the highest numbers. In 2006, Colorado had seen a record number of 19,425 foreclosures in seven counties around Denver, which is thirty-five percent more than the foreclosures in 2005. The number of foreclosures in 2006, were 13.45 percent higher than the number in 1988. However, a growth in popular, construction and homeownership prevented these numbers from going any higher.

In New Jersey the foreclosure rate is predicted to continue to climb in 2007. However, experts do not believe the foreclosure rate will cause a crisis for the housing market or the economy in New Jersey. The number of foreclosures were up seventy-eight percent in New Jersey since 2005.

While there are many issues that result in home foreclosures a rising cause is mortgage scams. Many homeowners have no other option other than foreclosure after getting stuck with abusive lending practices. These type of predatory lenders often encourage individual to borrow more than they actually need and increase the interest rate deceptively. Other lenders may try to get individuals to accept a home mortgage that have high prepayment penalties and excessive fees.

Most of the time it is those who are new to the housing market or have less experience that are probably going to fall into these home mortgage traps. Other targets are individuals who don't have a good credit score and feel there is little option for getting a home mortgage.