Shanaz Ahmed
Monica Gaspar
Jessica Cabauatan
Period 2
Foreclosure Write Up
Statistics show every three months, 250,000 new families enter into foreclosure.
A foreclosure usually happens when a homeowner stops making payments on their home, after a certain amount of time the home will goes into foreclosure. Simply, foreclosure is the process by which a homeowner’s rights to a property are lost due to the of failure to pay the mortgage. If the owner cannot pay off the outstanding debt or sell it quickly, the property then goes to a foreclosure auction. If the property does not sell at an auction, it becomes the property of the lending institution (Foreclosure Statistics).
When thinking of foreclosure, we often think families were irresponsible with loan payments or they bought a home out of their league. The truth is foreclosure can be caused by many things. Death, job loss, medical expenses, and divorce are a few of the most common reasons people foreclose on a home. These factors are real and an everyday part of society, when facing these situations, homeowners sometimes don't have control leading their home to its foreclosure. Statistics show the found the tipping points that put homeowners over the edge: 32% experience a job loss, 25% experience a health crisis, 85% have already missed one mortgage payment, 50% have already missed two payments, Most have no savings, no available credit, and their extended families have limited resources (Foreclosure Statistics).
Although homeowners clearly don't benefit much from foreclosures, there are ways to handle a foreclosure responsibly. Homeowners have the option to foreclosure or have a short sale. Both of these items have advantages and disadvantages. First, a short sale which is when a home is sold by the owner for less than owed, the significance in price reduction for the home is an advantage, but the disadvantage is the payment needs to be in cash. A foreclosure takes place after the owners fail to get the home through a short sale. A foreclosed home also cost less, but is owned by the bank,
