There is a third wave of foreclosures coming…..

In reading an article from the Money page of CNN on foreclosures and what cities are still getting hit, it was an interesting article that cited THREE waves of foreclosures, see the link below if you want to read the full article. The author stated that the first was the sub-prime mortgages, I agree, they said the second came from layoff’s/economic down turn and the third is still coming from the option-ARM of mortgages. This is a tough call, it semi-contradicts what has been previously cited or maybe they are just re-phrasing it to perhaps make it sound worse than it is. Prior to this I saw that there were to be 2 waves, the second wave being worse than the first, it being prime loans and it was due to ARM adjustments/job loss, it was to start in March 09 and last another 18 months if I remember correctly from my previous readings. Being that I landed in the second wave(my ARM adjusted in June), I definitely sat up and took notice and continue to watch forecasts related to my ARM to make sure I won’t become part of that statistic. Now the next question is how is the government HAMP (Home Affordability Modification Program) is going to help stop the bleeding of the foreclosure wave.

We know on a small level this is helping, I again helped a client with a Mortgage modification last week, she went from a 1558 payment to a 964 payment, which includes escrow, amazing terms and it just took a few phone calls to help facilitate it. I know they work, I know they can happen. This week I am helping another client do the same. If your economic situation has changed since you did your mortgage, we can most likely help get your loan modified….for the better and it doesn’t hurt your credit one bit and it is not a re-finance so it won’t cost you closing costs.

http://money.cnn.com/2009/07/30/real_estate/worst_hit_foreclosure_cities/index.htm

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~ by debt2dreams on July 30, 2009.

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