The Los Angeles Times has posted an article about a growing concern that the number of foreclosures will continue to go up in 2010. High unemployment is still making it hard for people to pay their mortgages and it’s difficult to receive help from the government instigated programs that are supposed to help keep people in their homes.
The Obama administration’s mortgage modification plans look good on paper, but have been slow to turn temporary reduced mortgage payments into permanent reductions.
“The overarching sense is that the mortgage modification process has not worked that well,” said Bert Ely, an independent banking consultant.
Progress is expected to come and the Treasury has really been pushing banks to increase the numbers of permanent mortgage modifications. A recent report said that those numbers were up to 12,700 from 3,200 in December 2009. Another 13,900 modifications are currently supposed to be in the final stages.
But that’s a drop in the bucket considering that BofA holds about 1 million mortgages that are at least 60 days delinquent. About 4 million homeowners nationwide are 90 days or more delinquent on their mortgages or in foreclosure proceedings, according to Moody’s Economy.com, which analyzes data from credit reporting company Equifax Inc.
Trial modifications have also helped keep homeowners in their homes temporarily, but another 2.4 million people are expected to lose their homes in the upcoming year, up from 2.1 million in 2009. This will drive real estate prices even lower, making it even worse for homeowners who owe more on their home than it is currently worth.
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