Teens Suffer from Enduring Foreclosure Crisis

by on Foreclosure Crisis

In the midst of the foreclosure crisis, teenagers are experiencing trouble at home especially when their parents are imposing measures that will allow them to pay their mortgage dues each month.

It is not surprising that majority of American families have tightened their belts in order to address their financial problems. With the high fuel prices and soaring cost of living, many homeowners are having trouble making ends meet and keeping up with their mortgage payments.

To make matters worse, these homeowners can not explore the possibility of selling their homes or even taking out another loan to refinance their existing mortgage debt. This is because most of them have larger mortgage debt compared to the equity in their homes. With the home prices declining in most states and inventories of foreclosed properties growing, selling is certainly a challenging option to consider.

To help their parents deal with the mortgage problems, many teenagers are cutting back on their spending and getting part time jobs. Many parents have also decided to discuss the foreclosure process with their teens in order to prepare them for any eventuality.

The burden of facing the possibility of losing their home to foreclosure is evident in some of these teenagers. Some are sharing the worry that their parents are feeling, affecting their studies and social life. Things that were previously fun, like proms and graduations, have become the cause of stress for these young people.

On the bright side, many of these teenagers have started getting conscious about their spending habits and have become thrifty, choosing to save their earnings from baby sitting jobs instead of spending them on clothes and gadgets.

Nationwide, foreclosure filings have risen by over 55 percent compared to the previous year. Analysts are estimating that by the end of this year, more than a million more homes will enter some stage of foreclosure. A mortgage relief program is scheduled to be implemented on October 1, hopefully reducing the number of troubled homeowners in the country.