Why has the foreclosure rate on US home

[Mezmarelda]

mortgages gone up 93% in one year? They just had on CNN that the mortgage rate has skyrocketed by 93%. And we know of all the banking crisis, and stock market being sured up by the fed. What caused this situation?

[grumpyoldman]

I am guessing people that got a loan can no longer afford to pay it back due to the rise in gas prices and everything associated with that rise. Which is basically everything we use.

[mountainman]

unscrupulous lenders,stupid borrowers.Bad combination.The foreclosure rate hasn't risen because people lost jobs.It rose because lending institutions loaned money to people without adequate credit.Nobody's fault but their own

[CHARLES A]

Lets see congress gave these banks credits to give loans to people who otherwhise would not have qualified. Then they want to complain when these people can noy afford to pay the note.

[eat_urself.instead]

people tend to look at the moment they manipulated that. when it would have made more sense to charge a lower constant rate rather than to divert for a time and than bombard them with a excessively high rate. Unless people saved up for this they'd be unable to pay it, if they had the ability to save up for it they wouldn't have needed it in the first place.. in the end the banks get the properties back to resell and still got payed back part on the loans, its free money for the banks...

[Micah M]

a quick web search came up with lots of results but this is the best one i could find for you.

[commonsensemom]

It's called Preditory Lendors, who duped people into refinancing their homes and/or buying homes with adjustable rate mortgages, that have now adjusted up to payments people can no longer afford. Top that off with rising insurance costs, and property taxes, and it ballooned out of control. It's also on the people who were duped in to these mortgages in the 1st place, for not doing their homework, and reading all of the fine print. It pays to take your time, and make sure you know exactly what you are getting in to. Too many people are not stopping and thinking about the the things they do, and have lost the ability to utilize common sense when making huge descisions that can affect the rest of their lives. People have also lost the ability to smell a "rat" when it's stareing them in the face. It's called LISTEN TO YOUR INSTINCTS/ GUT FEELING, if it doesn't seem right, don't do it. If it's too good to be true, it probably is too good to be true. It really pays to do your research, and talk to other people before diving in to buying a home, and obtaining a mortgage.

[crabby_blindguy]

Because, under the influence of special interessts, the Bush administration put in abusive policies that allowed predatory lending practices. This made the special interests a lot of money by creating a housing "bubble."

Sooner or later all such bubbles burst--and the ordinary people are left with nothing while the special interests count their money.