What to do When the Money is Gone

If you own a home, you have a mortgage. Mortgages have been very easy to come by for most people in the beginning of this millennium-if you had a pulse and a job you could get a mortgage. Money was pretty easy to get in the past 6 years or so.

Unfortunately, remortgages are becoming less common as banks and mortgage lenders have tightened lending guidelines do to increasing defaults. Homeowners are being foreclosed on at records rates to to the free and easy lending practices of the past 6 years. In the U.S. dozens of mortgage lenders have gone belly up, but they have only their greed and poor judgement to blame. Borrowers who took mortgage payment protection plans with their mortgages are glad they did. These plans pay your mortgage when you can't.

More banks should have pitched mortgage payment protection plans when they were playing fast and loose with their lending guidelines-maybe there would be fewer defaults if they had. Unfortuneateley for most borrowers, high interest adjustable loans obtained 3-7 years ago are adjusting NOW and payments are through the roof. The lenders are partly to blame for this mess and borrowers who KNEW they were overstating things are to blame too.