Prevent Foreclosure: Prime Home Loans Make Up the Next Wave of Foreclosures
“Prevent foreclosure” has become somewhat of a slogan among subprime home loan holders for the last few years. Now, they seem to be stabilizing, which would lead many to think that the foreclosure crisis is coming to an end. Stop – not so fast!
While we have seen home prices climb and subprime mortgage defaults slowing, it seems that every time there’s a bit of good news, it’s followed quickly by some bad news. This time it’s experts predicting that homeowners with good credit being the next group at risk for having their home foreclosed on.
Learn what happens when you stop paying your mortgage.
According to the BusinessWeek.com article, Housing Animal Spirits to Be Banished by Prime Foreclosures:
An increase in mortgage defaults among prime borrowers in 2009 is likely to accelerate this year . . . The number of prime mortgages overdue by at least 60 days more than doubled in the third quarter from a year earlier to 838,000, according to a Dec. 21 report from the Office of the Comptroller of the Currency and the Office of Thrift Supervision.
What’s Needed to Prevent Foreclosure Among Prime Home Loans
In a word – jobs. The aforementioned article notes that the economy shed more than 7 million jobs in the last 24 months. This is the biggest loss of jobs since the Great Depression. Many of these jobs were lost by homeowners who had good credit and were always on time paying their mortgages and other bills.
But, with a prolonged loss of employment, little savings and “exotic” mortgages some took out on their homes when times were good, now these same homeowners are struggling to pay the bills.
Can the Government Help Prime Home Loan Holders Prevent Foreclosure?
The Obama administration’s prevent foreclosure program, Home Affordable Modification Program, has been roundly criticized for not doing enough – and moving too slowly when it does offer help. Furthermore, those the program has helped have a high re-default rate – more than 60%.
Foreclosure Help: What Happens After Foreclosure?
To Prevent Foreclosure Americans Need Jobs
And, this is the bottom line. Until incomes are stabilized, Americans are not going to feel comfortable. When consumer confidence is low – no matter what the economic indicators show – people just don’t spend. It’s a simple formula – jobs means economic security. This raises the confidence of consumers, who start to spend. Then, the need for prevent foreclosure programs will slowly dissipate, along with the foreclosure crisis in general.
P.S.: Business Opportunity: Learn How to Start a Foreclosure Cleanup Business. Read how one foreclosure cleaning biz owner makes up to $40,000/wk.
Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.