follow me on twitter subscribe to feed
# HowTo Package Your Loan Mod Application Kit
# HowTo Phone Negotiation Tips
# HowTo Complain & Motivate To Get Action
# HowTo Follow Up by Phone, Fax, Mail
# HowTo Use a Qualified Written Request
# HowTo Use a Mortgage Audit As Your Ultimate Weapon
# HowTo Fight Rejection Tactics
# HowTo Stop a Foreclosure Sale In 1-Day
# HowTo Remove Bad Credit & Raise Your FICO Score
# HowTo Eliminate All Your Debt

Search This Site

follow me on twitter subscribe to feed

Number of homeowners underwater could soar from 23-percent to 40-percent

Housing is in big trouble. Excess inventories remain a big problem, so weakness in prices isn’t surprising.

According to Gary Shilling, President of A. Gary Shilling & Co., an investment research firm, he thinks there will be another 20 percent decline, though that decline has been held up by the moratorium on foreclosures.

But those things seem to be clearing away, so he thinks we’ll be seeing more houses on the market soon. And as prices go down, more people get underwater, leading people to walk away. So prices are going to be the leader in the whole complex of sales.

“If we go down another 20 percent, the number of people underwater will leap from 23 percent to 40 percent, and that will probably lead to another round of write-offs for lenders. That will be Act II in the whole drama of the housing collapse,” says Shilling.

This makes the need for banks to write down the principal balance of loans being negotiated for loan mods even more urgent.

Technorati Tags: housing market, underwater mortgages, principal writedowns

Related posts:

  1. Merced County worst in the nation for homes underwater
  2. HAMP trial loan modifications only helping 20-percent of eligible homeowners so far
  3. HAMP credited with 40 percent rise in California foreclosure cancellations
  4. Bank of America planning more principal reductions to qualified homeowners
  5. FDIC Chairman Sheila Bair wants to force banks to reduce principal for homeowners on brink of foreclosure

Tags: , ,

Facebook comments:

Leave a Reply Cancel reply

Bad Behavior has blocked 272 access attempts in the last 7 days.

Switch to our mobile site