Low interest rates combined with sub prime lending such as zero down loans, adjustable rate mortgages, interest only loans etc. Helped people get into homes. However most of those mortgages are now mature and the rates have adjusted leaving the borrower with a payment they cannot afford, combined with the market taking a beating in several areas, people find themselves living beyond their means and when they cannot get refinanced into a better loan or sell the property the bank takes possession and really the owner has no choice but to allow foreclosure as they cannot sell it, they cannot refinance, and they do not have cash to save the home. It is a sad thing as so many home buyers were tempted by these loans and not really given explanation of the implications and possibilities. More coaching should have been done to explain to these people that Adjustable rate mortgages , interest only and zero down loans should be used as a catalyst to put you into the home but planning and process to set the home and yourself into a more favorable loan or position is key to making these types of lending options good and workable. If borrowers had used the time on the adjustable rates to save enough for a down payment, cleaned up their credit scores, and reapplied prior to the maturity date there would probably be less foreclosures. It's not fair to blame the banks, the market, the people...it's a combination of all things considered and perhaps we have learned that we need to fully understand what we are getting into before we agree to an offer that seems too good to be true.