In recent months, the number of foreclosures across the country has more than doubled over the same period last year. The reasons for this high percentage of complaints are many. First is the sub-prime loans landed in the hands of people who probably do not qualify for financing agreements. So interest rates on loans are still higher than other loans accordingly. In addition, many subprime loan products such as adjustable rates (weapons), which usually re-established in the first, clean the loans in advance. As for the subprime mortgage, Chapter 13, is a typical scenario as follows: tt: homeowners eligible for loan without payment of a substantial downward and without significant documentation of income. The monthly payment is a stretch for homeowners, but is currently manageable. Depending on the type of ARM, the loan may go to one, two or three years. And ‘that’s when the owner can not make new, higher depreciation. The homeowner can not refinance the debt on the property because the type of loan products as needed to make this work no longer exists. Thus, a house in quite a difficult situation. The current real estate market makes it almost impossible for owners to sell property and pay the mortgage. Chapter 13, called home when investors would not be practical to adjust the arms. The idea of Chapter 13 bankruptcy is a homeowner to understand that mortgage arrears have risen to more than pay current mortgage on time. How to set prices and recover the hosts loans simply can not pay current mortgage, let alone a deposit for r to recover. The situation Ari basically a doomsday for both homeowners and mortgage company. The owners were banking on the ability to make payments and / or refinance outstanding debt at a later date. The lack of property appreciation has led to an inability of the homeowner to do just that. What we see is a large number of homes on the market for sale. Many borrowers will file for Chapter 7 bankruptcy and Chapter 13 bankruptcy. I think the market will not be of 5-7 years to begin to show signs of appreciation. It will be interesting to see if Congress modified the bankruptcy code to allow regulated mortgage debt. If not permanent, so for a short period of 3-5 years.