Other Shoe Drops - Job Losses Push Safer Mortgages to Foreclosure

Just when you thought mortgage foclosures on bad credit loans had peaked, now comes the bad economy really hitting the pavement. Just when Middle Class Americans were on life support, comes the new painful diagnosis. Being at the forefront of the mortgage and Loan Mod industry I've seen this coming a mile a way. Few economists seem to predict its drag on elongating this downturn lasting. Drive into any neighborhood and you can hear the ticking...homes on a fuse...with good borrowers. Right now, 30%+ of the homes in my neighboorhood are up for sale or empty bank owned. At one point you could sit up at night and listen to what sounded like the crickets chirping away. Only its not the crickets, its the symphony of empty home with dead battery fire alarms chirping away. I have lists of good borrowers who've schlepped away so far with their original over extenuation of credit, by any means necessary. Tax refunds helped alot of them catch up mortgage payments. In the end they admit they are dragging on the inevitable demise of default.

What most economists seem to fail to notice, that my lead base does, is that the process is not only fluid by staggered levels based on when high risk mortgages come due and when the seepage runs into healthy mortgages on a sour economy saturation point. Connecting Job losses, auto bankruptcies, impending Credit Card defaults...I hear plenty of stories of people making last ditch efforts to attempt to save lost income and jobs, starting their own business' etc. Going for bust in a "gamble it all" within 30 days of missing their first mortgage payment. We're still warming up on what was predicted to be the worst year in foreclosures. And Economists tell us the economy will recover when? The stock market is doing well and hit bottom in March, but its always and advancement bet on the future a year or 2 from now. What is real is in the neighborhoods, the people who did the American way, now crying on the phone, sometimes asking for help no one can give them. Most people who call me for loan modification cant even qualify their income is to low. This means more short sales and liquidation of American wealth. There is no quickly rebounding economy cause we're consumer driven and they have no money. The future landscape of America is going to be different. Question is how different?

If you know someone short selling their home, make sure they do a Loan Mod first to stay in the home. A forensic audit of their loan is next. If not a short sale and then if they can bankruptcy. 60% of mortgage companies CANNOT produce the NOTE contract on their mortgages. Under Contractual Law these people have a right to stay in their homes if proof of Contract cannot be provided to a court. If you have questions please call me. Dont let people get tossed into the street.

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