Foreclosures are a  continuous problem in our country, a growing source of foreclosures are homeowners who are “strategically defaulting.” Research has shown that the people involved in purposely defaulting are individuals which had high credit score when they applied for the loan, and not individuals who have low scores.

Research has also shown,  ” Strategic defaulters often go straight from perfect payment histories to no mortgage payments at all. This is in stark contrast with most financially distressed borrowers, who try to keep paying on their mortgage even after they’ve fallen behind on other accounts.” They also show that these types of defaults are popular in areas where the housing market boomed such as California, and most of these defaults take place on large loan amounts.

Where the housing market once boomed is now where is falters the most, this is especially the case the Las Vegas, Nevada. Vegas has been at the top of the foreclosure lists since the beginning of the housing meltdown, and it continues to be among the worst hit areas.

Recently DataQuick released statistics stating that Las Vegas home sales rose as investors and first time buyers take advantage of the low prices that have come from foreclosure sales. They reported that,  “Nearly 70 percent of the Las Vegas-area houses and condos that resold in July were foreclosure resales, meaning those homes had been foreclosed on in the prior 12 months.” This number seems very high compared to Southern California’s 43% foreclosure sale rate.

Through the Making Homes Affordable Program, many thought they found the solution to their mortgage troubles. Unfortunately it has proven to be a daunting process which leaves many homeowners losing the fight to save their home. There are over 4 million homeowners who qualify to receive assistance through the program, and of those 4 million about 230,000 people have had a loan modification completed.

Many are pointing their fingers to the banks. There has been a long list of complaints from homeowners who can never get a hold of a person at the bank, and if they do it is often not someone who can help them. The Kollars of Arizona are a prime example of this. They have done everything under the sun to get through to the bank, “Frustrated with the bank, Angela Baca-Kollar called the Obama administration’s helpline, 1-888-995-HOPE, but the representative told her that the hot line “can’t strong-arm the bank” and urged her to call a government-approved housing counselor.” It’s easy to see why so many lose their homes to foreclosure.