10,000 permanent loan mods have been accomplished to date - that's it just 10,000!!!
In the last 90 days about 1,000,000 (that's one million) new people have entered the foreclosure process.
Even if all 10,000 of the successful loan mods were in the last 90 days that's still only 1%!!!
Q: What happens to the other 99+% who aren't receiving successful loan mods?
A: They become short sales or foreclosures
Q: What happens when all of those short sales and foreclosures enter the market over the next 5+ years?
A: Prices continue to correct. I wrote previously that prices nationally would return to levels last seen in 1996-1998. I am now thinking that they will most likely correct further. The only possible way that prices won't correct to those levels would be if our government and the Fed instead opt to create significant inflation. That would mean that values would stop dropping and could ultimately push prices up high enough that the projected 50+% of homes that will have be underwater* by end of 2011, might not actually realize that fate . . . of course the level of inflation needed to reach that point would also push a McDonald's value meal to a price of over $25!
If you think dropping values are a problem, PRAY that our government and the Fed don't choose to simply inflate their way out of one problem and into a far worse problem.
For details on the article click on title above or cut and paste link below.
For solutions to this situation please email a brief description of your situation to kirk@kirknace.com and simply raise your hand and ask for help.
http://finance.yahoo.com/news/Only-10000-permanent-loan-apf-1828618683.html?x=0&sec=topStories&pos=2&asset=&ccode=
*being underwater is the term used when an owner owes more against the property than the property is worth. Currently only about 1 out of every 4 US homeowners are suffering from this. HSBC recently released a study wherein they project that number to grow to 1 out of every 2!
