In 2009 there were 900,000 foreclosures, but already this year has experienced 528,000 foreclosures since January putting us on course to outstrip 2009’s foreclosure numbers. Analysts are predicting that more than 1 million American homeowners are likely to lose their homes to foreclosure this year as mortgage servicers pick up the pace in clearing out the backlog of homes already slated for foreclosure. The current pace of foreclosures in this country is unprecedented. In the past, mortgage lenders foreclosed on about 100,000 homes a year; but just in the period of January to June of this year, lenders have issued 1.7 million foreclosure notices.
Of course many of those homes did not succumb to foreclosure, but just the fact that they were issued a foreclosure notice is an indicator of the state of affairs. Homeowners facing foreclosure , need to remember that they are not alone. They also need to realize that many mortgage lenders are feeling desperate about this foreclosure crisis which is eating away at their profits. Even in cases where homeowners clearly do not have the means to pay for a mortgage, lenders are pursuing them for payment even after the home has been sold during a foreclosure auction. Unfortunately for homeowners, mortgage lenders can legally pursue them for payment after foreclosure if the home was not sold for enough to cover the balance of the mortgage loan. With the rising number of homes worth less than their mortgage attached to them, we are seeing more homeowners facing lender lawsuits for payment even after foreclosure sale.