Borrowers found themselves facing foreclosure for a number of reasons, most of which involved falling home prices coupled with adjustable-rate mortgages. Many home owners discovered they owed more against their homes than their homes were worth. Not only were their homes upside-down, but they could not afford to make the higher mortgage payments resulting from Option ARM loans and other exotic financing.
Almost half of pre-foreclosures are redeemed or otherwise satisfied prior to foreclosure completion.
