What is causing the increase in foreclosures?

Answer by  Freddie29 (47)

This can be caused by an increase in unemployment, adjustable rate mortgages being reset at a higher interest rate and the houses being worth less than the existing mortgage balance.

Answer by  debmalewski (1085)

Generally I believe that the increase in foreclosures is due to people getting in over their heads in home purchases in the past. They bought more than they could afford, with easy to obtain credit that started out low but jumped high, creating incredibly high monthly payments that they could no longer afford.

Answer by  DouglasEarlClore (1236)

People who bought more house than they could afford, and people who have lost their jobs and therefore their ability to pay.