Could you be one of the many Americans facing mortgage foreclosure? Many experts agree that with the rise in interest rates and other determining factors the number of Americans losing their homes to foreclosure will balloon at an alarming rate.

One of the dreams of the most Americans is to purchase his/her own home. Unfortunately for most of us, we cannot afford to pay cash for this important investment. When we buy this dream, we do look on it as an investment in our future. For most, this is the single most expensive purchase in our lifetimes.

For many, this investment is quickly becoming a nightmare. It is reported that within the next couple of years, many Americans will be facing the devastating dilemma of foreclosure.

During several good years of blooming home building growth and lower interest rates, a lot of people have entered into the ranks of homeowners or have upgraded into a more luxurious and more expensive home.

A lot of the consumers making these home purchases have unknowingly been led into a path of self destruction. Some mortgage companies have not always looked after the best interest of their clients in making these transactions.

These unscrupulous mortgage dealers have acted as predators and have reeled in the unsuspecting. Some have presented “bed of roses” rates and deals that don’t always remain as they were represented.

It is a person’s nature when buying a home to get the most for their money and at the same time plan for future growth. Most will purchase the value that they think that they can afford at the time and plan as if their financial future will be improving. As some of us have seen from the past, this improvement is not always the case.

The unpredictable gasoline prices, as minute as they may seem, can be a decisive factor in determining if one can pay his monthly bills. This holds particularly true if this person is already slightly squeezed with other bills.

Credit card debt is another home buyer’s worst nightmare. With the credit card regulations as loose as they are at the present time, you can very easily be unknowingly lulled into a major increase into monthly bills.

I like to compare most credit card companies to the old preconceived opinion of the used car salesmen.

Along with the determining factors that I have mentioned previously, comes the main factor in the cause of home foreclosures of today.

Know as ARM’s, the adjustable rate mortgages are causing the possibility of home foreclosure to become reality to many Americans today. More that 500,000 mortgages were in foreclosure in the fourth quarter of 2006.

Many people were “painted pretty pictures” when applying for home loans when the economy was better and interest rates were down. Some were even poor credit risks with poor credit history. These factors have compounded the problems that the increased rates have brought on.

Monthly payments for some have increase as much as 50 to 60 percent. When most of these loan agreements were signed, these people did not realize what their responsibility could be in regards to a minimum monthly payment.

Some mortgage companies have sealed their own fate by issuing subprime loans to customers who cannot now afford them. The greed for money has led them into bankruptcy due to the fact that these customers have been unable to meet the monthly payment requirement.

Presently, there is a lot of money tied up in delinquent mortgage loans that have yet to go into foreclosure. These loans are stale and not doing anyone any good.

Also, another bad result of so many foreclosures is that the supply may sometimes come close to surpassing the demand. This causes difficulties in transferring ownership of any houses.

People buying on speculation will have a much harder time moving their goods. This may also require them to move their merchandise at a reduced price.

These home mortgage foreclosures can have a ripple effect which can cause damage to all segments of the home market industry.

Maybe when all of these foreclosures have taken place, the only positive thing to come out of it is the fact that many people have learned a costly lesson. Lets hope that the result of this lesson be seen from our government all the way down to the consumer.