Susie never predicted that she may perhaps suffer the loss of her residence outside of Los Angeles. But increasing interest rates and the rise in monthly home loan payments have her dealing with the possibility of home foreclosure. She is one of many thousands of Americans who may be forced to change homes as the housing market has lost momentum.
"I loved my residence, and I was happy here, and my spouse enjoyed it and this was my dream house and now we're behind on payments with it," she said, keeping away from getting sensitive about her losing her home, as she stood in her living room.
The cheerful Boston transplant, for privacy reasons, did not want to disclose her family name, lost her recently built, 3200 square-foot, four-bedroom two bathroom home to foreclosure. Because her initial teaser interest rate has risen, the monthly mortgage payments on her adjustable-rate ballooned over the past several years and made the house payments unmanageable. It will be auctioned to the highest bidder next week or become an REO for the lender.
"We found it impossible to keep up with the house payments," she explained. "The home loan payments went from $1,500 a month almost to $2,500 a month, so unfortunately being my dream home, I just about to lose it."
Not Rare
Her situation is not rare. She is one of millions of Americans who took out Adjustable Rate Mortgages to get into a house during the most recent housing boom.
As those initial low monthly interest rates began to get reset, mortgagors could see their monthly house payments adjust upward to levels beyond ability to pay. People will face the choice of making higher payments, selling their homes or, in the worst cases, foreclosure. Although, there is a company that is a member of the BBB that will help and possibly reduce your payments, 877YouKeep.com or 877-YOU-KEEP.