Astaria

Foreclosures are at an all-time high in America. Experts predict nearly 1.4 million homeowners will face foreclosure in 2008 and residents of Florida, California and Texas will take the hardest hit. In 2007, Arizona foreclosures rose nearly 40-percent and Colorado reported one of every 345 households either filed foreclosure or were on the brink of filing. Currently, the only states immune from escalating foreclosure rates are Vermont, Maine and the District of Columbia. However, experts predict these states will experience an explosion of filings when adjustable-rate mortgages begin escalating later this year. How did the housing crisis in America occur and why was it allowed to happen? Americans have always strived to reach the American Dream of homeownership. When zero-down, interest-optional balloon payment loans were offered, people were attracted to them like flies to honey. Millions of unsuspecting people were suckered into sub-prime loans and in quick house sale vested in houses way beyond their means. As adjustable rates increased, mortgage payments doubled or even tripled. Individuals struggling to make their $1,000 note payment were now looking at $2,000 to $3,000 monthly payments. The sad reality is they simply did not possess the financial means to pay their note. When the bubble burst, their dream quickly became a nightmare. Foreclosures not only have a devastating effect on the homeowner, but the lending institutions and local community as well. Individuals who reside in communities with high foreclosure rates are forced to pay higher property taxes, local taxes and increased fees for utilities. Additionally, the potential for crime increases. Vacant homes are a magnet for unscrupulous characters. Vandals destroy property, oftentimes breaking windows and doors or leaving graffiti on both interior and exterior walls. Criminals engage in illegal activities including the sale of illegal drugs or weapons.