Hi People.
It looks like we're in for another record year of foreclosures, short sales & deeds in lieu. Looks like the only thing we will most likely not see is the ever elusive loan modification.
The Loan Mod. One of the country's hope in slowing down the depreciative home values. Seen prominently in it's early "trial" stages but rarely seen after that. Now, everyone knows someone who knows some one's friend who just did a loan mod and that person's mortgage is now $10 a month plus a Bologna sandwich. A little bit of an exaggeration (not much), there are a few people who have completed their Mods.
The problem is that, according to The Wall Street Journal, " Some borrowers are catching up on payments after having their loan terms modified, but S&P says current trends suggest that 70% of such borrowers eventually will redefault". At that rate it doesn't matter who's getting a loan mod done. That's just a stay of execution.
How will we keep afloat? There is a ton of action out there from 1st time home buyers and investors (thank goodness) that are bailing water in the sinking boat. How long can they keep it up? For a good while if the economy continues to recover and interest rates don't fly through the roof. If not.....?
Click on the title for The Wall Street Journal article and tell me I'm full of it.
God Bless.
Monday, February 15, 2010
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