When is the next wave of foreclosures coming?

Real Estate August 31st, 2009

This Diana Olick blog post might help you answer that question:

Now that Making Home Affordable programs are operational, we do project an increase in foreclosures as we exhaust every available option to qualify customers for modifications and other solutions.

While we have very strong loan modification programs now available, unfortunately, these foreclosure projections reflect the increasing number of customers who will not qualify for loan modification because they have suffered major life events servicers can’t solve…primarily unemployment and underemployment.


One Response to “When is the next wave of foreclosures coming?”

  1. HousingStorm Says:
    October 4th, 2009 at 5:39 pm

    What’s the real reason that banks aren’t foreclosing?

    …
    Banks make more money by NOT foreclosing on homes. Banks are dragging out the foreclosure process for their own selfish reasons. Until the day they foreclose, the amount of money owed to them is an asset…sure, it’s an asset that isn’t paying interest payments…but it is still an asset. The day they foreclose, a $400,000 asset could become a $150,000 asset and a $250,000 loss.

    Multiply that loss by 10, 20, or even 30 times leverage and there are several million dollars worth of new loans that the bank can’t make.

    Read the whole article: http://housingstorm.com/2009/09/whats-the-real-reason-that-banks-arent-foreclosing/

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