06-05-08

A new record for the American real estate market was reached this month: 1 million homes in foreclosure. This is the highest number ever recorded and with real help not likely to kick in until Oct 1st when legislation designed to lessen foreclosures kicks in. This equals to about 5000 homes entering foreclosure per day. With 5000 homes and families being foreclosed on each day the need for a comprehensive mortgage foreclosure program needs to be enacted on soon rather then later.

The amount of mortgages past due is also surging now topping 3 million homes that are behind on their mortgage. This number equals about 8000 homes per day become past due on their mortgages. This is as if a whole modest sized American town all of a sudden each day became unable to pay their mortgages.

Anyone who is at risk is urged to take measures now rather then later to try to save their home. There are some fairly descent programs available to people up to 3 months late such as FHASecure, so people at risk are urged to take action at the first signs of hardship. Options are limited after 3 months and largely are limited to getting the current bank to rework or modify the loan. If you are having trouble getting your bank to comply you can call the official Hope Now Alliance hotline and try to get them to submit your modification request on your behalf.

One thing is for sure and that is that this housing crisis will keep getting worse by the day until the government steps in and offers a real solution and a fixed rate mortgage to everyone in need without credit checks. The legislation that is expected to come live on Oct 1st may help a lot, that is if Bush does not veto it, which he did mention he was considering.

Discuss the news here