The CNN.com mentions how foreclosures are up 112% over the same time last year.
This dramatic shift cannot be blamed entirely on homeowners.
The problem that emerge from this mess are not being felt yet. When a foreclosure occurs, the owner most likely loses any equity they built up.
The borrower's ability to buy again will be hampered for years to come. Where do lenders expect to find potential borrowers in the future when so many have lost everything?
New and risky loan products will once again find their way to market in the next few years and we'll be in this mess again.
Most borrowers facing foreclosure would prefer to keep their homes, but they either don't have the income or the loans are too onerous.
Changing loan terms in one solution, but without comprehensive job growth and economic improvement nationwide, the ability to pay will remain elusive into the future.
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