Banks Forcing Foreclosures?

In the early part of 2008, were banks forcing people into foreclosure? The story I am about to relate is only one story and involves one local bank. So take this story for what it is worth.
My son had purchased his first home, in the central valley in California, just before mortgages started going south. Against my advise he got into the home on an adjustable rate type mortgage, and he assured me that after the first year he would refinance it into a 30 year or 15 year fixed mortgage. After the first year he went to the bank and attempted to get a 15 or 30 fixed mortgage. The bank informed him that he was locked into the adjustable mortgage for the first five years and if he refinanced out of it, there would be a stiff penalty. He realized at that point that the agent and lender had lied too him regarding his loan, and to make matters worse the individuals involved were no longer employed by their respective companies. He thought about filing a complaint, and decided not to as the time and effort, coupled with the fact that it was his word against theirs, and he had signed the loan documents, his first lesson in the school of hard-knocks, he felt filing a complaint would be a long hard road with a dead end.
In March of 2007, he again went to the bank and attempted to negotiate with them to adjust his mortgage, as he no longer worked in the area and could not afford the home and gas prices having to drive the long distance to work. The lender told him no, they would not alter the agreement or consider a refinance or any other change. The lender then told him, if you can't make the payment let us know and we can start foreclosure proceedings. The lender actually told him that it was ion their best interest to let the home go into foreclosure, than to alter the mortgage to allow him to keep the home. Again, I ask the question, did the banks and loan companies force the country into the foreclosure crisis, for their own profit? Is the Government's bail out of these institutions to be considered a payoff for the loan companies part in creating this crisis? I don't know, but from this experience it seems that at least the loan companies, seem to be the only one,s profiting from this situation.

Here are some common sense tips on avoiding foreclosure;

1. Before buying a home, make sure you can afford it. Maintenance, up-keep, insurances, recurring bills, gas, electricity, cable TV, garbage pick-up, and the purchasing of those items that were not needed when you were a renter. Make sure you have a savings built-up to allow you to survive any major disruption in your life that may occur, usually savings that will continue your life style for at least 3 months and preferably 6 months.
2. Read your mortgage, know what it says and ask questions regarding the term of the loan, caps on the increases of the loan rate, and any penalties associated or that may pop up if refinancing is an option.
3. Know your legal rights and have a plan in place, for actions to take if you should find your self in foreclosure or feel that you may end up in the foreclosure process. Having the plan in place ahead of the situation insures that you have not forgotten something due to the psychological pressures that can be associated with the foreclosure process. After all, we insure ourselves from fires, earthquakes, floods, death, and injury. We insure our homes, cars, boats, motorcycles, and all the personal property we own, and we protect ourselves from civil legal action. Your best initial insurance against foreclosure, is planing and not getting into a mortgage you can't afford, the second is to have the knowledge about the foreclosure process, and what you can legally do to protect yourself.

for more information on how to protect your self from foreclosure go to, FORECLOSURE DEFENSE SECRETS

Avoid foreclosure Save Your home

The last thing that I want to happen is to lose my home. How do I recognize the early warning signs of a looming foreclosure? What is foreclosure, and what is the process of a foreclosure?
In this day and age we are expected to be experts on all the area’s that affect our daily lives, from automobiles to zoning laws. All of these areas can affect our ability to get what we want and to hold onto it.
In 2008, foreclosures were up 112% and the rate of foreclosures are expected to continue, and even increase into 2009. With at least 40% of us living from paycheck to paycheck, the prospect of losing our home is real, and could happen at any time. Especially, in the current economic crisis that is facing our nation and every citizen. More of us are and will fall into that group, living from paycheck to paycheck.
In order to protect yourself from the foreclosure process, you must understand what it is, how it happens, the early warning signs and most importantly, how to protect yourself from foreclosure.
WHAT IS FORECLOSURE
When you purchased your home, you signed legal documents agreeing to terms and conditions between you and your mortgage lender. In those documents you agreed that if you failed to make the required payments, or could not repay the loan. The lender had the legal right to take the home, or to begin the foreclosure process.
Technically, if you fail to make your monthly mortgage payment, you are in default. Every State has different law concerning this issue, but generally, a loan that is 90 days behind on their payments can be considered in foreclosure.
Your lender may send you a notice informing you that they are beginning the foreclosure process. Most people should have known that they were having problems, but fail to take immediate action to stop, or delay the foreclosure process. Do not wait till you receive a foreclosure notice to take action, don’t put it off, and don’t try to wish it away or pretend it could not happen to you. Take steps NOW to prevent foreclosure.
 Know how to recognize the warning signs of foreclosure.
 Know the steps to take immediately to avoid foreclosure.
 Know what to do, and what not to do, if you are in foreclosure.
 Know where to get help, at the first sign of foreclosure, or if you think you may be going into a foreclosure.
Protect yourself from foreclosure
As my grandmother use to say, “An ounce of prevention is worth more than a pound of cure”. Now is the time to educate yourself and put a plan in place, on what steps you can take to avoid, delay, or deal with a foreclosure. Don’t wait until it’s too late, don’t put it off, and don’t think it won’t happen to you.
The block I live on has eight homes, in the past year three of those homes were foreclosed on. All were hard working people with children, who never thought about losing their homes. At anytime, any of us can be hit with a serious illness, loss of a job or even the death of a loved one. These are just some of the unexpected things that can happen, that could alter family’s life. We have insurance on everything, cars, people, computers, cell phones etc…, but what insurance do you have against foreclosure? Knowledge is our insurance against the unimaginable happening, losing our home.
Take action, go to Foreclosure Defense Secrets now. Get the knowledge that you need to protect you and your family against foreclosure. Now is not the time to worry about it, now is the time to educate yourself and to be prepared.
Foreclosure Defense Secrets!