Is There A Silver Lining In The Newest Nationwide Foreclosure Record?
Given the current state of affairs in the mortgage lending industry even a skewed bit of good news is a welcome change to previous years gloom and doom prognostications. While the Mortgage Bankers Association recently reported yet another record number of mortgage loans falling into foreclosure during the second quarter this year it was quickly pointed out that four states, Florida, California, Arizona, and Nevada contributed the lions share to the final tally.
In fact, the MBA stated that if not for those four states the number of foreclosures nationally actually showed a decline. Thirty-four states reported decreases in new foreclosure filings, and those states reporting increases claimed the climbs were modest.
Still to blame for the bulk of the foreclosure problem is the impact of the adjustable-rate mortgages sold during the heyday of the real estate market. Some experts believe the worst is yet to come as almost one-billion dollars in adjustable-rate mortgage loans are yet to reset between now and the end of next year.
The four states mentioned as the leading contributors to the newly set foreclosure record between them account for over one-third of the overall filings.
What might be ahead?
As government regulators and lawmakers created newer, more stringent, laws and guidelines for credit and lending practices the availability of credit has become more constrained. As a consequence borrowers trying to stop foreclosure by refinancing are finding limited options open to them.
Lending standards will continue to tighten. This coupled with the current glut of homes available will continue to fuel the existing housing recession.
Overall unemployment numbers are up nationwide. How this may affect the performance of sub-prime mortgages has yet to be determined, but if a person cannot find employment it stands to reason that mortgages can't or won't get paid.
It may well be that the majority of the states have seen the worst of the crisis, but the four states driving the problem may tip the balance either way. The crystal ball isn't clear on this matter but if mortgage resets and unemployment continue to increase you can draw your own conclusions to the outcome.
In the meantime until a rebound is noted, the best one might expect is for lawmakers, lenders, and consumers to continue working on ways and means to work around the immediate foreclosure problem.
Victim or Victor – the Choice is YoursYou could lose everything or you could come out of this with more than you ever thought possible. It all rides on your decision to contact us. The sooner you do that, the better the outcome. Get started and stop foreclosure now by answering a few questions for us . To Talk to Someone Now Call: 1-888-I-SAVE-80 There's no obligation. In fact the initial consultation is FREE. And that may be all you'll need to stop the foreclosure for good. Learn What You Can Do To Avoid Or Stop Foreclosure |