Mortgage Companies Prepare For Major Wave Of Foreclosures In 2010
While the markets and the general press make positive extrapolations from the small upticks in corporate profits as a sign of economic recovery, the truth remains, it appears, that it’s the housing market that will ultimately drive whether the economic recovery succeeds or fails. It is clear that these times will pass, and that things will get better, eventually, but how much better and how fast, that remains a wide open subject.
In that regard, any concerned citizen or economist need only type in the word ‘foreclosure’ into a news search engine to gauge where we are in the housing markets. Below is a link to a story that is representative from NuWire Investor. There are many many other examples, from all corners of this country
Mortgage Companies Prepare For Major Wave Of Foreclosures In 2010.
Today, the Associated Press quoted statistics from RealtyTrac, Inc. which reported that more homes were taken over by banks and scheduled for foreclosure than in any quarter, going back to Jan, 2005. These pending and completed foreclosures, already adding to the record number of real estate owned (REO) properties, currently held by the banks and mortgage companies. Eventually, those banks and mortgage companies will have to market and sell those distressed properties, which in turn will further erode property values in already depressed markets.
Throwing the average American out of their home, is not the answer. The opportunity to truly modify home mortgages, and retain and pay for homes, should be the basic policy of the Obama administration for a long term and sustained economic recovery. Current loan modifications are simply not working, an acknowledged fact. http://www.nationalbankruptcyforum.com/chapter-13/non-bankruptcy-loan-modification-is-a-failure/ The terms are not permanent, the volume of modifications are not sufficient, and hard working Americans are losing their homes in droves.
It is past time for our representatives to act to allow forced loan modifications as a function of Ch. 13 bankruptcy plan. Any sort of business, large or small, any farmer, any investor in income generating real property has this right and power to modify a mortgage loan. Only the over mortgaged American homeowner is denied the right to modify their home loan to try and keep and pay for their home.
For true leadership and financial recovery, our Congressional leaders should act to amend the Bankruptcy Code to allow home mortgage modifications in Ch. 13.
Member, Board of Directors, NACBA
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