Unemployment rates are headed towards double digits. Currently it is at 9%. This is causing, once healthy borrowers, being faced with a foreclosure as they are losing their jobs or at least overtime they are use to get is becoming less and less. So it is not just the sub-prime loans and unemployed workers that are having problems. Hard working Americans are too.
What is sad, our government can’t help. According to Economy.com 60% of defaults on mortgage are due to unemployment. Did I mention, the Feds couldn’t help either?
What the unemployment rate is doing is for home values to decline. America is faced with record foreclosures, tight lending practices, and a bunch of unsold homes because it is tough to find and keep a job that will pay the bills. There are other reasons obviously, however, they are for discussion on another day.
How bad is this decline? Standard and Poor/Case Shiller Home Price Indices says from 3/08 through 3/09 there was a decline of 18.7% while we are on track for 2009 to see a annual rate of decline of 25%. Even Adam York, one of the guys over at Wachovia, says the decline will continue way into 2010.
Did I mention the Feds couldn’t help us either?
Free Reports:
http://www.StopForeclosureInSanCarlos.com http://LovelySanCarlosHomes.com
Foreclosure/Short Sale Information:
http://www.StartFreshLLC.com
This happen over the weekend and I thought you might want to know this if you have not seen it before.
First of all the Treasury Department indicated it would reward lenders who closed on properties with a short sale. Likewise the Feds issued a few guidelines for short sale so banks now can figure out how to price a short sale.
Bank of American is taking the lead on this by loosening its policies on 2nd mortgages. They now allow 2nd mortgages 5% of the loan amount as a payoff. The good part is if B/A is the second lean holder they take the 5% automatically.
What that means is a big challenge to short sales has been addressed by the Feds and adopted by banks. It’s about time these guys start working together. Today they get an “Atta-boy/girl”
“Credit card debt is not the most serious problem facing America today. Empty houses are.” Click headline for full report.
Brace yourself for some very hard decision by many Americans as to if they should stay home or should they go. Over 600K foreclosure the last quarter. No new jobs. Unemployment claims up.
The bottom to this market will not turn around until investors come back into the market and unemployment levels out.
If you owe more on your home than it is worth go to www.StartFreshLLC.com for help.
www.StopForeclosureInCalifornia.com
The number of people filing new claims for jobless on an ongoing basis benefits in the week ending May 9, was up 32,000 according to the US Labor Department. These claims rose to a record high for the 15th straight week.
34 Seconds video: http://www.youtube.com/watch?v=JUgIPfgcgHs