We have all heard it or seen it in the news that the number foreclosures on the market continues to rise.
When the housing market was red hot, people tended to over extend themselves and now many of these people are unable to make their monthly mortgage payments.
This coupled with the growing rate of unemployment in this country, and the end result is more homes in foreclosure and a ton of homes being taken back by the bank.
The aggressive investor, the opportunities to profit are endless.
But those who are not in a position to invest, there are still options available to them.
In a perfect world, a good solution to this problem would be getting banks and lenders to modify the loans of a greater number of homeowners.
If they would be willing to lower the interest rate or the principal on the house or both, more people would be able to keep their homes.
Even the government openly admits there is a problem.
President Obama's Administration's Home Affordable Modification Program (HAMP) is definitely a step in the right direction.
Hopefully it will get the ball rolling and the economy will improve.
Through this plan, the US Treasury Department has offered lenders up to seventy five billion dollars to assist in the cost of lowering the monthly payments of distressed borrowers to thirty one percent of their incomes.
It even offers incentives to lenders in the amount of one thousand dollars for each loan modification they grant.
They are also offered an additional thousand dollars if the loan modification is still in effect after a term of three years.
There is no doubt that many people are feeling the financial crisis.
But we all have to just do what we can and grab every opportunity that comes our way.
Those who have the ability to do so can take advantage of the booming foreclosure and real estate owned (REOs).
Others just have to do whatever they can to remain positive during such negative economic times.