Monday, April 12, 2010

7.9 Million Americans have stopped making Mortgage payments!

In the wake of this unprecedented epidemic, the government has no concept how to help the homeowner, instead the Obama administration comes up with one empty program after another, and none have worked!

Why? Because they were not intended to!

This administration has gone out of its way to help the banks foreclose on America. Providing a bailout for the financial sector, without the taxpayers or the borrowers in mind, as such we have already witnessed over 7 million properties taken over by bankers, and now we see the possibility that another 7.9 million are about to go, and right behind them is anticipated to be another 15 million homes.

The rate of foreclosure is currently accelerating faster than lenders are capable of going through the process to take them back. It currently takes well over a year, in some cases nearly two years, to go from missing a payment to being foreclosed and evicted.

As this article is written, 7.9 almost 8 million borrowers have stopped making payments to their lender, instead they are spending what they perceive to otherwise be dead money, paying in essence for what many believe to be a dead horse.

In most areas of the country borrowers are figuratively speaking, under water with their loans, in Las Vegas alone, the most severely damaged city in America more than 81% of borrowers are upside down. On any given street there are between 2 and 4 homes already foreclosed, and “vacant”

This 2 year period gives the borrower ample time to purchase items that their mortgage payments had otherwise prevented. Accordingly we are witnessing a new thinking process as borrowers are retiring other forms of debt, and acquire things they otherwise could not afford.

On the bright side, this could help to generate a sort of financial recovery on the back of the banks who created the problem -- they may inadvertently be helping to solve it.