It is almost impossible to pick up a national newspaper and not real about the Real Estate Market. The pace of foreclosures and the move to “Short Sales” seems to have changed the mantra of , “it started with Housing it will end with housing”. If that comment had a truthful ring to it before, it could be quite some time before we really recover.
In many main stream media sources they are saying we are about 9 to 12 Percent of the mortgages in the United States are late in paying their bill and are prime to enter into foreclosure. In the Wall Street Journal on Wednesday, June 17, 2009 they published some other numbers, in what is almost a full page article, they write about the attempts banks are making to keep up with this problem. Some of these numbers are very interesting.
They say approximately 4 million loans were delinquent in the first quarter of 2009. Then they say that Chase has 3500 employees working on just loan modifications. This number may be a reason to give a little thought to the size of the problem in relation to the number of people working on it. The files that are being addressed by the lenders is like a mountain and the workers trained to do the work is tiny in relationship to the problem.
The problem is greater than the number of mortgages being written and just a fraction of the people who had any mortgage experience are working on it. I expect that the scope of the problem and the ability to respond to it by the banks will encourage them to continue to look harder and harder at short sales.
One interesting comment in the article is that the loan modification process is free. They also speak of firms being criticized for cheating people who do not know they have a right to ask for the help for free. This is a great feature of the President’s “Foreclosure Alternative Program” it is started with a look at a Loan Modification and then goes to Short Sale. Learn about the Presidents Plan it could make a big difference in your future.
This article was written by George Kenner, a Ca. Broker with 19 years Real Estate Experience. He will answer questions with a private response if written to him at http://www.shortsalenurse.com