The truth behind the cause of home foreclosures and the effects it has had in America needs to come out. If it was all because of the banks, why don't they admit it? .
According to an article from the Cerritos College Library, a few years ago, lower end bank loaners and realtors did things such as falsify documents, add up the math wrong purposely, and not tell the home buyers and investors the complete and clear mortgage agreement. They made it out like it would be low payments, low interest, and an overall great deal, but in reality - between the lines - it was just the opposite. The main banks/companies that did this are countless such as Ally Financial Inc.'s GMAC Mortgage unit and JPMorgan Chase, but Bank of America as of now is still dealing with foreclosures most heavily. Although the bank loaner's scams played a big part, other things such as the economy and the rate of people losing their jobs caused things to downfall. Death and illness can also be a major factor in not paying the payments. For example, if someone's spouse dies, maybe in an accident that's unexpected, the remaining spouse is then left with the full mortgage payment that they might not be able to pay by themselves. When people don't have enough income to make their full mortgage payments, they end up getting behind and in debt. The IRS will not let this go on for long before they end up seizing the home. .
Born and raised in Phoenix, Arizona, Isabel Rodrigues works as a researcher in economics in New York and works with FOX News writing articles. She stated in the article, Foreclosed Homes, "People need to stay informed and understand 'What causes home foreclosures?' A determination to live within your means is the surest way to prevent trouble and is also the surest way out of trouble. You can sometimes do something to earn a little extra income, but it is more important to control your spending. It will help if you make a budget and stick to it.
