We Are Our Own Worst Enemy !

We Are Our Own Worst Enemy !

The year 2000 came and went and the millennium bug did not wipe out all the computers like predicted. Life went on and the "I want more attitude" of our American public continued at a thunderous rate.

People started to purchase homes that they could not afford, lenders became more lenient and gave out mortgages left and right to people who really could not afford them. The lenders got creative and gave out mortgages with interest rates called ARM's (Adjustable Rate Mortgages). This is where the borrower gets a low interest rate at first but then the interest rate will rise thus making the monthly payments go up. So the people who really who could not afford to buy theses homes got in over their heads.

Crank it forward to 2005 and some serious hurricanes hit Florida, and Louisiana. 5 major hurricanes hit the U.S. and the housing boom in Florida comes to a halt. This also slows the new housing markets in the Southeast.

New housing sales and building takes a downward turn all through 2006. Also through 2006 some of the ARM mortgages are starting to raise their interest rates. The economy is starting to take a down turn and the real-estate and new housing markets are being hardest hit.

The year 2007 starts off with foreclosures across the country, Fanny May & Country Wide Mortgage companies reporting more foreclosed homes in their inventories then in past years. People with ARM mortgages are starting to default left and right as their interest rise increasing their payments to the points they can not afford them. With the declining housing markets their home is now worth less than what they paid for it, so even if they could sell it they could not break even or just a little bit behind. Many get so far behind in their mortgage payments they see no hope of recovery that they just mail in the keys to their homes to the lender.