Home foreclosures are at record highs as many people are no longer able to afford the higher interest rates on their homes and are unable to make the payments.

Many of these people puchased homes when the housing market was booming and with the help of ARM (ajustable rate mortgage) they were able to buy homes that normally would not fit their budget. However now the interest rates have been rising steadily over the past year, making the mortgage payments higher and now putting people into a house payment they can no longer afford. Some people could find their house payment increasing by as much as 50%!

Foreclosures data shows that foreclosures have increased 63% (as of March 2007) from what they were last year. Not everyone will lose their home due to foreclosures many people will manage to sell their homes before that happens but not everyone will be that lucky.