Foreclosures Soar Reverse Mortgages to Aid Distressed Seniors

According to the Mortgage Bankers association, there are now a record 1.35 million homes in foreclosure. The delinquency rates also rose to 6.99% which is up from 5.59% a year ago.





Sub-Prime loans which started the real estate delinquency problems, are still leading the delinquencies at almost a 20% delinquency rate and also lead foreclosures are no longer the only loans on which the delinquency and foreclosure numbers are rapidly rising. Mortgage delinquencies and foreclosures are expected to continue to soar as the jobs-lost numbers continue to worsen.





While the delinquency rates hit almost 7% (those include all borrowers who are more than 30 days past due on their mortgage payments), almost 3% of all mortgage holders are in some phase of foreclosure proceedings (2.97%).





According to the MBA, the actual number of homes in foreclosure could be even higher as the number of loans in the 90 or more days delinquent but not yet in foreclosure status has grown considerably but these loans may not have been placed into foreclosure yet due to various moratoriums, greater lender forbearance, etc.





When you add the job losses reported today of 533,000, more than in 3 decades, will truly help the future mortgage foreclosures soar yet further. Lenders and servicers continue to work with borrowers to try to craft repayment schedules and modify loan terms.





What no one has a way to know yet, is whether these actions will only delay the inevitable, or whether these actions will allow borrowers the opportunity to actually catch up and get themselves out of trouble once and for all.





Economic weakening in Florida and California has played a large part in the soaring foreclosure numbers. California and Florida have been leading in foreclosure numbers primarily due to massive housing starts, speculation and weak underwriting. However, now that you can add job losses of over 156,000 in Florida and 101,000 in California, those numbers are rising even more.





With the weakening economy and with the jobs lost, the effect on seniors has been devastating. Seniors have seen their life savings and their retirement funds disappear lately with the $2 Trillion Dollars that the State Department has estimated has been lost in the capital markets.





Now with the jobs market tightening as much as it has and unemployment rising to 6.7%, many seniors who find they can no longer support themselves without re-entering the job market, are finding it increasingly difficult to find the employment they require just to get by.





Many now find themselves among this soaring delinquent and foreclosure group. These are individuals who may never have had a blemish on their credit in their lives but are caught up in an economy in which they just cannot contend.





However, for those seniors who have chosen to obtain the HUD Home Equity Conversion Mortgage (HECM or Heck-Um), they do not have to be concerned with the soaring foreclosure rates and whether or not they can now make their mortgage payments.





With the HECM there are no monthly payments. Borrowers live in their homes for life with no monthly payments, and therefore do not have to worry about the possibility to being caught up in times like these with the soaring foreclosure rates.





This is one Government program which has really helped hundreds of thousands of seniors and given them a safe haven in an uncertain economic world.

Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762
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Inland Empire Real Estate Caused The Economy Slow Down

Everyone knows the US economy is in one of the largest recession we have ever seen, except of course the great depression. If you turn on the news any time of the day it is one of the main stories talked about. Record job losses, record foreclosures, record bankruptcies for americans. One thing the press is not clear on is where this economic crisis started from.





If you are are home owner you can be sure that you are familiar with where the current economic crisis came from. In 2003 to 2005 we saw the value of our houses sky rocket to the highest levels we have ever seen. Everyone was enjoying the new found rich es from real estate. This was not just another stock that caught a lucky streek. Millions of americans were enjoying making money just by living in their home.





So, being the smart investors that we Americans are, we borrowed money from the mortgage companies at 6-7 percent interest and enjoyed the returns from a real estate market with returns in the 20-30 percent increase. Many of us owned more than just our family home and some of us actually purchased twenty or thirty houses, trying to make a buck.





Then it happen. The real estate market was over saturated with new homes from home builders who were making millions from a job that used to just pay the bills. Real estate home prices started to decline in the winter of 2005 and continue to move down today. This is caused by too many homes on the market an the fact that no one can sell a house.





Many of the people who owned more than one house were caught paying high mortgage payments on a home they know they could not afford in the first place. Now that real estate home prices were coming down there was no more making money from just owning a home.





Then we see the highest foreclosure ratings in years. Why, because millions of americans were trying to leverage and make easy money from owning a home. Now all the equity even the modest home owner had received is all but gone. This is what caused people to stop spending money, they had no more.





This is what caused the current economic crisis, and now the government may help by bailing out home owners who over purchased. Do you think this is fair? Well it might not matter if you think it is fair or not. If the government can stop the foreclosure crisis it will help close the bleeding wound of the United States economy. So that neighbor of yours who drives an old honda accord and lives in a half a million dollar house, just may get what he needs to keep him from going bankrupt.





New government programs will lower mortgage payment for millions of americans and in some cases they will even differ principal so the home owner will not fall into foreclosure. Most of us can admit that even though it is not fair, this is the real world and almost nothing is fair.

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