Home Foreclosures in U.S. Reach Record Highs: What It Means for the Average Joe

According to the Financial Times article, US home loan foreclosures reach record high, some 15% of American homeowners are either in foreclosure or late on their mortgage as of the 4th quarter of last year.

This is in spite of the help the Obama administration has put forth to stem the tide of home foreclosures, ie, some $700 billion in TARP funds. Of this, the article states:

The funds, which will come from the $700bn Troubled Asset Relief Programme (Tarp), will be directed into programmes to help people struggling to pay their mortgages, such as the unemployed or those in negative equity (emphasis added).

The bolded portion of the last statement highlights the continuing problem; the reason home foreclosures are still at record highs.

American and Home Foreclosure: Why It’ll Probably Get Worse Before It Gets Better

Until the economy recovers, which means putting Americans back to work, home foreclosures may continue to rise. Numbers seem to be heading in the right direction. Unemployment recently dropped from a double-digit 10% to 9.7%. Slow progress, but progress nonetheless.

What Americans Need to Prevent Foreclosure

But, the problem many homeowners facing foreclosure have is that they need jobs — and they need them now.

You see, when you don’t have a job and have run out of savings, you start to fall behind in paying your bills. You may even have to start using credit cards to pay for the basics. This creates even more debt — right at the time you can least afford it because as anyone who’s ever been in debt will tell you, it’s a lot harder digging out than getting in – even when you start working. It can take months or longer to get on solid footing again.

But the thing that makes America great is that we always bounce back. And that’s what many homeowners facing foreclosure and other financial problems need to hold on to.

Learn the #1 secret your lender won’t tell you that can prevent foreclosure.

P.S.: Read how one foreclosure cleaning business owner makes up to $40,000/wk.

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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.