Deborah never expected that she might suffer the loss of her residential home outside of New York. But increasing interest rates and the rise in monthly home loan payments have her facing the possibility of home foreclosure. She is one of many thousands of Americans who might be required to change homes as the housing market has slowed down.
"I loved my house, and I was happy here, and my spouse enjoyed it and this was my dream house and now we're losing it," she said, avoiding getting sensitive about her losing her home, as she stood in her family room.
The cheerful Boston transplant, for privacy reasons, did not want to disclose her family name, lost her newly built, 3200 square-foot, four-bedroom two bathroom home to foreclosure. Because her initial teaser interest rate has skyrocketed, the monthly home loan payments on her adjustable-rate ballooned over the past several years and made the house payments unmanageable. It will be sold to the highest bidder next week or become an REO for the lender.
"We were not able to keep up with the house payments," she explained. "The home loan payments went from $1,650 a month almost to $2,500 a month, so unfortunately being my dream home, I just about to lose it."
Not Exceptional
Her situation is not rare. She is one of millions of Americans who took out Adjustable Rate Mortgages to buy a house during the latest housing boom.
As those initial low monthly interest rates start to get reset, homeowners 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.
