Foreclosures Continue to Rise As Owners 'Give Up'
March 6, 2008 by Todd N. Wilkinson
As adjustable rates continue to rise, more subprime and prime borrowers are choosing to simply walk away from their homes. The biggest U.S. mortgage companies have posted their worst losses to date as rising defaults boosted credit costs. Both the Bush administration and Congress are urging mortgage companies to modify loan terms to slow the tide of foreclosures, and the Federal Reserve continues to slash rates to avoid recession.
Oliveros & O'Brien, P.C. has seen a steady rise in bankruptcy filers in recent months. Chapter 13 bankruptcy remains a viable way to protect homes from foreclosure by allowing the homeowner to cure arrearages over a period of 3 to 5 years without additional interest or penalties.