Pre-Foreclosures in Vancouver

Posted on August 26, 2007
Filed Under Foreclosures | Leave a Comment

The foreclosure rate in this country is staggering. Many homebuyers are struggling to meet their payment obligations especially on sub-prime or alternative types of loans with ARM’s. They usually have a low teaser rate and than a 3 year or 5 year fixed time frame before adjusting.

The basic problem is that during the rapid equity increases homeowners would spend like crazy and rack up the credit cards than refinance their mortgage and use up the new equity. Now that their payment has become an adjustable rate and the fixed portion has expired than they face a huge mortgage payment. They can no longer refinance as they spent the equity and prices are now falling. Also, they did not prepare themselves for the shock and reality of these higher payments. Thus, for many, foreclosure is looming over their heads.

Many homeowners are in what is referred to as the “pre-foreclosure” period. This is either on the brink of being in default or outright default and the clock is ticking till the courthouse sale.

To learn more about pre-foreclosures there is a wonderful article on our site at:
prospecting for pre-foreclosures