As a Christmas gift Fannie Mae has given homeowners a few more days before they get tossed on the street. No other D.C mortgage lenders have followed Fannie’s lead, but hope so they will.
If all of the lenders followed Fannie’s lead and if all foreclosures would have been suspended from the 19th to the 3rd. Then that would be a pretty big deal.
If all lenders follow Fannie’s lead then it prevents 160,000 homes from foreclosure
Nowadays the number of foreclosures has now reached a level of 11,000 per day. So if such kind of break would have been taken by all the lenders then they can prevent as many as 160,000 homes from foreclosure. But that is only for two weeks.
The 2009 foreclosure will come in around 4mm. This has raised up from 2.2mm in 2008. According to records, in the period 1950-2000 the foreclosure rate averaged less than 1% of all mortgages. In 2010 foreclosures could be 7%.
Certainly there is more bad news in front of us regarding this issue. The HAMP and HARP programs have been introduced by Washington introduced in the last year to combat the tide of foreclosures. Regulators and even the White House has been putting pressures on the private sector lenders to avoid foreclosures.
All these efforts have lead to the reduction in the numbers, but the real impact is to pass the trash to a future period.
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Posted by R. Mak in Mortgage News · 0 Comment
