Can Las Vegas or California Survive the Next Foreclosure Wave?
They grew faster than subprime loans, but some believe it can shrink faster than what we have witnessed in recent months.This was the major reason California passed a 90-day foreclosure moratorium that began June 15, 2009. Every 30 seconds someone loses a home to foreclosure in California. 90,000 every month.
Earlier this year Florida passed a voluntary 45-Day freeze on all new foreclosures. Nevada has yet to pass a foreclosure moratorium but they remain the number one state in the nation in the number of foreclosures with1out of every 68 homes in foreclosure. If you believe you hold one of these loans, take a few minutes to ensure you do not end up in foreclosure .
Alt. A loans were most popular with buyers seeking investment property in addition to professionals and self-employed people who wrote off a lot of income, so their tax returns did not reflect what they were earning. Now, five years later, with home prices down, investment property is expensive to maintain and owners are finding it very difficult, if not impossible, to refinance another loan.
Five-year, interest-only Alt. A loans are coming due this year. When the foreclosure pause ends in Sep will we’ve got more foreclosures hit the fan? We don’t know which Wall Street firms bought mortgage-backed stocks made up of Alt. A loans. Will September bring a 2nd wave of repossessions, lay-offs, and bank closures?
If you are caught in the current foreclosure crisis, or think you may be caught in the next wave, there are answers. Contact your bank or lender, contact Freddie Mac or Fannie Mae for help with the federal loan modification programs. Organizations can offer no cost personal reviews and analysis to find the right options. Start right now, get information before the breather ends. You will be stunned at the amount of answers that exist.
