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Mortgage Modification Programs Yet to Prove Their Worth

Discussion in 'Economics and Financials' started by Fin Fan In Cali, Nov 25, 2008.

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  1. Nov 25, 2008 #1
    Fin Fan In Cali

    Fin Fan In Cali Dolphin fan since 1970 Luxury Box

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    Mortgage Modification Programs Yet to Prove Their Worth - FOXBusiness.com

    Meanwhile, the numbers just keep getting worse: foreclosure filings rose 71% in the third quarter from a year ago, and nearly 4 million homeowners are currently at least one payment behind, according to the Mortgage Bankers Association.
    The Center for Responsible Lending, an advocacy group, has amended its estimate of the number of foreclosures expected from late 2008 through 2009 from 1.1 million to 2.2 million.


    This is not good at all.
     
  2. Nov 25, 2008 #2
    joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    Add in the next wave of sub prime mortgages that has taken place through the FHA lending facility and it spells disaster for the property market. I dont look for any rebound in housing anytime soon. Could even be another year before we find a bottom.
     
  3. Nov 25, 2008 #3
    Fin Fan In Cali

    Fin Fan In Cali Dolphin fan since 1970 Luxury Box

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    Bro the sub-prime loans go through 2010 and into the beginning of 2011. With the job losses and those interest rates re-setting, it will be ugly for years to come sorry to say.
     
  4. Nov 25, 2008 #4
    joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    The original sub prime loans absolutely yes. Now just think of the new ones being pushed through FHA over the last 6 months and as we speak. Really crappy to think about really, but it is what it is.
     
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  5. Nov 25, 2008 #5
    Fin Fan In Cali

    Fin Fan In Cali Dolphin fan since 1970 Luxury Box

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    I agree brother.
     
  6. Nov 27, 2008 #6
    mnfinfan

    mnfinfan Active Premium Member Luxury Box

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    The issue behind the new FHA loans, is not that they are bad loans for people with bad credit, they are all pretty decent loans for people with marginal credit, it is the economy. Jobs are sloughed off at an incredible rate and if that continues then homeowners who lose their jobs even with non sub prime mortgages are going to be screwed.

    The issue I have seen is that so few people built up true short term emergency funds. Might have a couple thousand in savings, 2-8K but if your mortgage is $2000 and your monthly expenses total $4000 after taxes, you should have $16 to $24K set aside just for emergency funds, especially now when it takes 4-6 months and maybe longer to get a new job. Unfortunately for most people its too late to get that type of savings cushion built up.
     
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