As of the end of September reports, the number of bank foreclosure properties is up a whopping 71% over the previous year. The root cause of these astonishing figures lies with the banks and mortgage lenders. During the period of the well-touted 'ownership society', just a few years back, banks were making loans to many people who were clearly not qualified to assume a home loan which their income could not support.

It was recently revealed, largely through corporate whistle blowers, that mortgage brokers were encouraging applicants to not supply relevant information and even to inflate their income on paper, so that their loan would go through. Many such borrowers could barely make the payments at the lower initial rate.

When the higher rates kicked in, the number of bank foreclosure property began to rise rapidly, as almost none of these home owners were then able to meet mortgage payments. It's disingenuous to believe that the banks did not see this coming. However, they did receive their money for a while, including interest and whatever late fees might be involved.

As borrowers began to default, the banks, on the whole, failed to attempt renegotiate lower rates in order for the borrower to avoid foreclosure. The result? People lost their homes, their investment and their credit standing. Millions of bank foreclosures properties flooded the market. Often, the values of homes, in entire neighborhoods across the country, plummeted.

Therefore, people who owned homes and made their payments are now faced with property values that fall far below what they owe on their mortgages. Perhaps these are future bank foreclosure properties in the making. This $700 billion bailout of the banks is a thinly veiled payoff, leaving the banks hale and hearty, while saddling the taxpayers with this debt for generations to come.

Following the initial approval of this bank bailout, AIG brazenly threw a $440,000 party to celebrate their largess, while they and other failed banks threw millions in 'golden parachute' packages at the CEOs, who logically and ethically were accountable for making the loans in the first place. At the same time, banks were still refusing to loan, even to other banks. Now they are reportedly moving $2 trillion amongst themselves and won't disclose to whom they are lending!

Other controversial issues arise in this scandal of bank foreclosure properties. Falling values make this buyers market. With the current credit crunch, few can qualify. This invites foreign investment, which doesn't bode well for our economy.

How about all of the people who already lost their homes, pre-bailout? Why did the government wait until bank foreclosure properties had reached such a crises point? Moreover, this proposed home owner bailout addresses only home owners who are at least 3 months behind, owe more than the property is worth and who face imminent foreclosure.

This represents only 20% of mortgage delinquencies. Will this make a real difference to resolving the crises in the end? It remains to be seen what the final resolution to the problem of property bank foreclosures will be. The situation begs the question, how much more quickly might the economy be stimulated if some of this $700 billion were paid to working people, instead of buying up the debt of failed and unscrupulous bankers?

Instead of the rescue at the top, give some of this money to working people – this will stimulate economy if no one qualifies, consumers aren't buying, small business will go out of business, job losses

©2012 CapStar Real Estate & Loan. All Rights Reserved.

This article provides some basic information on avoiding foreclosure.

It can be a little bit scary to own a home. You never know when you'll have to pay for repairs on your furnace or when you will have to replace a window or two. The scariest thing about owning a home, however, comes on the occasion that you find yourself trying to stop bank foreclosure.

Avoiding foreclosure is a difficult thing to comprehend, but an even more difficult thing to pull off. There are, however, some things that you can do in order to avoid ending up on a bank foreclosure list.

The first thing that you should do is alter your focus to stop ignoring the problem. It's too easy to just say, "It'll be fine, and it will go away soon." Doing this will more than likely cause you to lose your home because it won't go away unless you take care of it.

Make sure that you contact your lender the minute that you know something is wrong and that you'll be having a hard time with your payments. Lending agents aren't in the real estate market and don't want to own a home; they want to get paid. The sooner you contact them, the easier things will be.

Another big thing you can do is to make sure that you're making the right financial decisions. Sometimes people will avoid paying their mortgage each month but will go ahead and purchase gym memberships. Aside from paying for your healthcare, paying for your home is the most important expense you can take care of.

Take the time and write down all of your monthly bills and their amounts. When you look at your monthly bills, you will likely see a few places where you can cut some money aside. Eliminate the entertainment that you can do without, including cable, if necessary, and memberships that you don't need.

Don't believe the hype about foreclosure prevention companies. Many of them are scams that are not able to help you with your mortgage issue. It is a much better idea to contact your mortgage company first before you contact any type of foreclosure prevention company.

Make sure that you know your rights. There are many right that a homeowner has when it comes to their mortgage payments. You can get a copy of foreclosure laws from your State Government Housing Office. Often this is the best way to be able to negotiate with your mortgage lender.

The best method to help stop foreclosure is to take an active role which establishes some leverage to ensure you don't lose your house. As long as you jump on the situation, learn to budget your money, and learn what laws apply to you, you will be able to stay in your home. When it comes to the mortgage world, the more you know and the faster you act, the better off you'll be.

©2012 CapStar Real Estate & Loan. All Rights Reserved.