Even worse, since a great deal of animosity often exists on the part of the property owner towards the lender or authority trying to take the property, the property owner will frequently strip the property of appliances or other personal property of value. Too, if the property is abandoned and vacant, break ins and pilferage occur that compound the problem. In some larger metropolitan areas. These properties are then repossessed through mortgage or tax foreclosures. The most common reason that properties are lost through foreclosure, though, is that the owner cannot afford the monthly payments because of divorce or loss of employment.
Recent statistics show foreclosures are on the increase.
As a matter of fact the foreclosure rate is higher now than at any time since the 1920's. Unfortunately this upward trend will probably continue because the stigma attached to bad credit and bankruptcy is not as great today as it once was. In Texas, borrowing against the equity of ones home was recently approved by voters. This means it will soon be legal to use real estate property as collateral. This may lead to an increased number of foreclosed properties in the future, for the same reasons outlined above.