Obama's Foreclosure Plan

Last month, we talked about how the voluntary moratorium on foreclosures had come to an end, and was a strong indicator that the foreclosure crisis was about to reach out to a whole new level! Guess what… it’s happening! Today, in a writeup from Bloomburg, its being reported that the Foreclosure Rate is Hitting All-Time Highs! Their article goes on to say that this is a result of severe job loss, to which I cannot disagree. Until we can find a way to create more jobs, the cycle is only going to continue downward!

What About the Foreclosure Rescue Plan

If you watch any of the network news channels, you may actually believe that the economy is turning around and getting better, but have you talked to your friends and neighbors? While the news networks are reporting increases in new mortgages and sales figures, what they are not telling us is that they are bogus numbers! Lets see… the Obama Foreclosure Plan takes effect, millions of homeowners, upside down in their home loans apply for refinance, and since the rescue plan involves getting a new mortgage… NOW you can see why the mortgage rate goes up! They aren’t new home sales, or existing home sales, they are refi’s!

When Will it Hit Bottom?

This really depends on which news network you listen to, but many are claiming it already has! Not! According to RealtyTrac CEO James Saccacio, the drop in home values may be slowing a bit, but its likely that banks and lender seizures will increase in the coming months! “Lenders and servicers are beginning foreclosure proceedings on delinquent loans that had been delayed by legislative and industry moratoria,” Saccacio said.

Just to add to this, the unemployment rate in the US is showing no signs of slowing… no jobs = more foreclosures!