Foreclosures could see an increase - Bills.com News

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Foreclosures could see an increase

Wednesday, Sep 23, 2009
By Lucy Sanderson

Because many people pursued home refinancing through an adjustable-rate mortgage, foreclosures could see an increase in the coming year.

A recent report from Toledo, Ohio's WUPW-TV noted that a number of adjustable mortgages are going to have their rates change, which could make it difficult for some consumers to pay for their home loans.

However, Michael King of Consumer Credit Counseling Services told the news outlet that this round of foreclosures shouldn'tbe as bad as those experienced in the past. The reason is that a number of people sought help for dealing with their mortgages ahead of time.

In the past King noted that many people simply dropped paying for their mortgages, which he said could be as bad for a credit score as declaring bankruptcy.

"You still technically owe that amount of money that they didn't get from selling the home and there's usually always an amount left over," King told WUPW-TV. (Editor's note : This is known as a "deficiency balance.") "It's not good for the lender, not
good for the consumer."

A recent report from RealtyTrac noted that one of every 357 housing units in the country received a foreclosure notice in August. In all there were 358,471 foreclosures in the country during the month.


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• Foreclosures in August see little change New numbers show that when it comes to foreclosures, consumers may not be getting the debt relief
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