U.S. home loans failed at a record pace in July. This news is not a surprise, yet is shocking to hear. It is the third time in the last five months that a new record has been set. Even though unemployment in the country is at 9.4%, the numbers of people still drawing benefits have decreased.¹ As you can see, numbers do not tell the whole story. There is one story, foreclosure rates are rising. There are many factors, but here is the bottom line. There is a 7% increase in foreclosure filings from June to July and an increase of 32% from this time last year. RealtyTrac states that 1 out of 355 homes that have a loan got a foreclosure filing.² Like I said, foreclosure rates are rising.

More than 360,000 households with loans drew a foreclosure filing in July, a record dating back to January 2005, when RealtyTrac started tracking monthly activity. Notices of default, auction or repossession have reached nearly 2.3 million in the first seven months of the year -- with more than half a million bank repossessions, according to RealtyTrac.³ For those of you that felt the economic indicators are encouraging, this might cause you to think otherwise.

Many states are suffering, with Nevada, California, Arizona and Florida making up 57% of the total foreclosure activity in July. However Illinois, Georgia, Texas, New Jersey and Ohio are other states with the highest rates of foreclosures. I live in Ohio and I am facing foreclosure too. I am not writing this to tell you what my trials and tribulations are about as I am not any different than the millions of people that are in the same boat.

I can tell you what it feels like, though. It is at first scary, depressing, desolate and harrowing. Then you feel like just giving up. Then you get angry and determined to find a solution. I know I tried to get a solution with my lender. It did not work. I didn’t qualify for the “assistance” they tried and offer to me. One method would have actually increased the amount that I currently pay, one method required me knowing a specific return date to work(I am unemployed) and one method actually required you to be 4 months late on your mortgage before they would even talk with you. Insanity seemed the only thing they could assist me with.

Maybe my situation was unique. We had a drastically reduced income due to my losing my job. Thus, our debt to income ratios was above the norm, so we did not get help from the lender. Come on, I’m not unique. Everyone in foreclosure, default or actual auction sale has those same conditions. I was always told; call you lender right away so that they can work with you. For me, their working with me didn’t work.

I’m trying two other things, but the feelings are what I was trying to convey. Like I said, it’s scary, depressing, desolate and harrowing. Then you feel like just giving up. Then you get angry. Then you get active. You go from hopelessness to hopeful, from not knowing to personal advocate, from desolate to pleased and from harrowed to relaxed. There is still time in the home and methods that you have to fight to keep your home. My experience is representative to thousands of others.

So, if you find the rising foreclosure rates to be at your doorstep, remember that it’s still your doorstep. Get active and get acclimated to avenues of assistance available to you. It is not what they can do to you; it’s what you can do for yourself. Just have hope and a willingness to do what it takes.

REFERENCES

1) www.changetowin.org/connect/2009/06/unemployment_the_good_the_bad.html

2) Yahoo Finance Pages August 13, 2009 > author Lynn Alder

3) Yahoo Finance Pages August 13, 2009 > author Lynn Alder

REFERENCES

1) Washington- (AP) Author> CHRISTOPHER S. RUGABER, AP Economics Writer

2)Yahoo Finance- New York( Reuters) Author> Lynn Adler

3) Yahoo Finance- New York( Reuters) Author> Lynn Adler