When you look at the current statistics of the country’s number of foreclosures when compared to a decade ago, you will understand why it is the topic of conversation between many homeowners, economists, and financial analysts. The numbers are frightening. Highly populated states with critical housing markets like California, Michigan and Florida have hundreds of thousands of foreclosures every month, while home values continue to decline by the day.

In the last year, 2.3 million homes in the country went through or are still going through some stage of the foreclosure process. Seven million families altogether are defaulting on their mortgages or are facing foreclosure. Currently, there are indicators that suggest housing prices may be on the rise in the short term, but with foreclosure rates as high as they are, the future of real estate still looks grim in many areas of the country.

Four years ago, foreclosure rates were six times lower than they are now. The system currently in place to handle foreclosures was not designed to handle such outrageous quantities. Local government courts are falling behind in hearing cases and performing evictions, and it may take some banks months to initiate the process of taking back a home. Also, servicers are taking advantage of the panic-stricken atmosphere to make a profit.

If the mortgage servicing companies see to it that borrowers are unable to qualify for the Home Affordable Modification Program (HAMP), then they gain money from your foreclosure. Neither you as the borrower nor your lender have anything to gain from your home being foreclosed, so many people are pointing the finger of blame on the servicers, which receive more in fees when a homeowner is late than when they are on time in payments.

To put it in terms that many baseball fans may understand, the country is in the 6th inning of the foreclosure situation. The prices will not peak until the end of 2010 and will probably not return to normal until 2013. Traditionally, if the circumstances of the housing market were normal, most homeowners defaulting on their loans would find alternative means of paying and be able to retain their homes. In this climate however, more than 50% of the homes that begin the foreclosure process never make it out again.

Fortunately, a great number of homeowners are still able to escape foreclosure by means of mortgage modifications or short sales. While other methods such as selling outright or obtaining a foreclosure loan may not be as easy anymore, other solutions have begun to present themselves in response to the dire housing market. If you are in a stressful situation and hoping to find a way out of your situation, you may not be out of options yet.

Speaking with a financial expert can be the best way to learn of your options and begin taking the steps toward securing your place in your home once again. The future of foreclosures may not be so great in your area, but they can be great for you personally if you act now to protect your home, your finances, and your family from any coming economic depression.