Note On Foreclosures

I should have added that the article also said that if the recent data supplied by Countrywide Financial is correct, and declining incomes are the main reason for foreclosures, the remedies being bandied about by politicians won't have a dramatic impact, since these proposals tend to deal with unscrupulous lenders, government loan guarantees, and a temporary freeze on rates on adjustable rate mortgages, also known just as ARMs. The ARMs were mentioned as a foreclosure reason in less than 2% of foreclosures in the Countrywide Financial data, although this reason could potentially skyrocket, as many ARMs are scheduled to go to higher interest rates within the next year or two. (Note: With Adjustable Rate Mortgages, potential home buyers were given what is termed a "teaser" rate that would last a couple of years before going to a much higher interest rate. Most of this marketing ploy was used beginning in 2005, so now the higher rates have hit some, but many more are about to get hit in the near future. It is much like the credit card companies advertising "Pay only 3% interest for six months," but then the rate goes to 20%.)