Posted on October - 29 - 2010
Foreclosure Crisis moving in a new direction
Not only are we seeing the foreclosure process stretch from the most infected areas like California, Nevada, and Florida. Other cities like Seattle and Chicago are beginning to feel the effects of the foreclosure crisis. Even though loan modifications are still a good option for most homeowners, we are seeing an increase of homeowners walking away from their homes. The governments Home Affordable Modification Program has helped thousands of homeowners, however due to the sheer volume of applicants and strict guidelines, not everyone is going to be saved by this program. Not only the has the loan modification industry been tainted with bad press from loan modification companies to attorney foreclosure defense it now has to deal with the latest news about possible lenders foreclosing on homes that should have been saved.
The investors who first swooped in to flip foreclosures have pretty much worked through the system; same can be said about the subprime homeowners, and unemployment homeowners. The first wave of major foreclosures have come and gone, the thing we need to be concerned with now is keeping homeowners who have adjustable rates, in their homes. With property values not being what they once where it is even harder now for people to refinance. The probability of those homeowners defaulting is relatively high.
Mortgage rates are beginning to rise and are now hovering around 4.73%, it will not be too long before the low interest rates are gone, leaving us in a serious situation. With job layoffs still continuing and the US economy still being sluggish, it is beginning to show across the nation how vast our real estate market has been crushed.
With the recent announcement of 3 top lenders putting a foreclosure freeze in some 23 states and possible more, really taints the industry as a whole. Leaving open ended questions on the legal standards of the lenders who are suppose to be helping not making the situation worse.
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