Home Mortgage Crisis off to a roaring start

Remember, I have talked about how the home loan crisis is nowhere near over? We have gotten a good start on it, though. Remember, now start the Alt A and Option ARM crises (nicknamed ARMaggaedon), prime default crisis, and commercial real estate meltdown. Also there is the "extend and pretend" inventory that are homes that banks are holding by the hundreds of thousands. At the moment they are pretending the homes haven't defaulted so they don't have to admit they're broke. Also, there is this regarding loan modifications and their abyssmal record so far:


Bob Chapman International Forecaster Dec. 23, 2009

“But nearly 40% of homeowners who had their monthly payments cut 20% or more last year were delinquent again within a year, according to a report Monday from the Office of the Comptroller of the Currency and the Office of Thrift Supervision.
With the economy still weak and employers continuing to cut jobs, "even if you've gone through a modification, your situation may deteriorate," said Fred Phillips-Patrick, director for credit policy at the thrift office.

That's an ominous sign for the Obama administration's plan to stem the foreclosure crisis. Lenders participating in the program have offered trial loan modifications to 760,000 eligible borrowers since it was launched in March. As of last month, just 31,000 of them had been made permanent, which requires at least three on-time payments and proof of income. Nearly the same number had dropped out of the program or were found to be ineligible.

The meager success rate means the $75 billion program may bring little relief to struggling homeowners. A record 14% of homeowners with a mortgage are either behind on their payments or in foreclosure. And that affects many more homeowners because deeply discounted foreclosures are hurting property values in many parts of the country, especially Arizona, California, Florida and Nevada.”


By the way, Obama has spent $12 Trillion on bailouts, handouts, stimulus, and guarantees. That's $39,087.95 for each and every American. For a family of six like mine, that's a quarter of a million dollars of new debt we need to pay off. Have you gotten your $39,000 check yet? Yeah, me neither. Have you gotten anything? I didn't think so. Must be the holiday season slowing down the mail.