Wednesday, January 27, 2010

New Report: 2010 Will Be Bad Year for Foreclosures


Just wanted to call attention to a new report on the health of our housing market and the progress of loan modification efforts.  The report is produced by a working group of state Attorneys General and banking regulators from across the U.S.

The easy-to-digest report predicts a dramatic acceleration of foreclosures in 2010.  Here's a snippet from the rather gloomy introductory paragraph:

... one in seven borrowers is behind on their mortgage. One in four homeowners with a mortgage owes more than their home is worth. The unemployment rate is 10% nationally, with millions of additional Americans either out of the workforce or underemployed. Hundreds of thousands of homeowners have “pay-option” ARM mortgages that are ticking time bombs for payment shock, when these loans reset to much higher payments. Despite efforts of servicers, homeowners, and the government, the foreclosure crisis continues to worsen. These signs point to more foreclosures in 2010 than in 2009. (Highlight Ours)

Remember... the sooner you or your clients seek help to avoid foreclosure, the more options they have available.  If you, or someone you know is struggling with mortgage payments... don't wait (and don't EVER pay for help). To find your local non-profit, FREE Foreclosure Counselor, click here. For additional information about preventing foreclosure in Minnesota, click here.

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