Do You Know the Severity of the Foreclosure Crisis
If you have been "tuned in" with the news recently, you may think you are aware of what is really happening with regard to home foreclosures.
But you may be in for a surprise, especially if you are a realtor or mortgage lender, anxiously waiting to refinance all of those Home Affordable Refinance Program (HARP) loans that will allegedly be coming your way in a few weeks.
Whether you think you know what is really happening, or you don't have a clue and would like to know the truth, this article is for you.
Following are a few statistics from our government about foreclosures in the US.
· An estimated 2.
5 million foreclosures were completed from 2007 thru 2009, and an estimated 5.
7 million foreclosures are imminent.
As a result, a total of 8.
2 million homes will eventually be lost to foreclosure.
· The estimated 8.
2 million anticipated foreclosures are based on the number of homeowners who have either defaulted on their payments, or those who are currently having difficulty making their payments.
Since these statistics are not consistent with experience in speaking to hundreds of homeowners every month, It's been important to conduct research that has ultimately uncovered the truth about the foreclosure crises.
It's been discovered that these government statistics are misleading based on the fact that the government failed to define "currently having difficulty making their payments.
" You may be very surprised to know that "currently having difficulty making their payments" are only those homeowners who have fallen delinquent on their payments! Not included are the 43% of all American households currently spending more than they earn each year! Logic tells us that if a household is spending more than they make each year, there will come a time when either savings, pensions, etc.
will dry up, or credit cards will become maxed out.
It's simply a matter of time before these households fall delinquent on payment of their mortgages (NOTE: The 43% of American households spending more than they make each year, has increased from 38% in just two years).
For those counting on an increase in income in the near future, government statistics say otherwise.
The U.
S.
Census Bureau indicates that since 2007, the year before the most recent recession, real median household income has declined 6.
4 percent and it is expected to continue declining.
While income is declining, debt is increasing.
The average credit card debt per household has increased from $5,000 to more than $14,000 in the past six years.
Assuming this trend of declining income and increasing debt continues, the 43% of American households currently spending more than they earn each year could be in jeopardy of eventually falling delinquent on payment of their mortgages, which could result in 48 million foreclosures (43% of 112 million households), as opposed to our government's current estimate of 8.
2 million.
That is nearly one half of American households in jeopardy of foreclosure! You would think the government would consider their statistics above a warning and therefore be motivated to do everything possible to assist homeowners in saving our homes from foreclosure.
Right? A few weeks ago, President Obama announced a revision to the Home Affordable Refinance Program (HARP) that would "allow many more struggling borrowers to refinance their mortgages at today's ultra-low rates, reducing payments for some homeowners...
"Is it fair to ask how many are in the "some homeowners" equation? What would you think if the answer was less than 4%? We were not told that even with the new guidelines, HARP is incapable, that's NOT capable, of reaching more than four percent of homeowners.
This is about the same as every other program, federal or state, that has allegedly been made available to distressed homeowners as related to the foreclosure crises.
All have cost taxpayers dearly while helping few people save their homes.
The Making Home Affordable program (HAMP) is a great example of these kinds of programs.
Birthed in February 2009, it cost taxpayers $75 billion.
Only one million households (out of 112 million) have qualified for HAMP.
But as of July of this year, almost one half of participants had dropped out of the program.
The obvious question is "Why does our government continue to spend their time and taxpayers money on programs designed to keep so few Americans in their homes?" It's a question that we continue to try to answer.
Listen to a live call-in broadcast that is trying to answer this question and others relative to the foreclosure crises every Thursday at 9 p.
m.
Eastern Time or access it online at www.
relieveyourdebt.
com.
You can also listen via telephone, (347) 884-9324.
You can source the information in this article and get insight into this issue by accessing the Washington Post article outlining President Obama's recent announcement of revisions to the Home Affordable Refinance Program.
But you may be in for a surprise, especially if you are a realtor or mortgage lender, anxiously waiting to refinance all of those Home Affordable Refinance Program (HARP) loans that will allegedly be coming your way in a few weeks.
Whether you think you know what is really happening, or you don't have a clue and would like to know the truth, this article is for you.
Following are a few statistics from our government about foreclosures in the US.
· An estimated 2.
5 million foreclosures were completed from 2007 thru 2009, and an estimated 5.
7 million foreclosures are imminent.
As a result, a total of 8.
2 million homes will eventually be lost to foreclosure.
· The estimated 8.
2 million anticipated foreclosures are based on the number of homeowners who have either defaulted on their payments, or those who are currently having difficulty making their payments.
Since these statistics are not consistent with experience in speaking to hundreds of homeowners every month, It's been important to conduct research that has ultimately uncovered the truth about the foreclosure crises.
It's been discovered that these government statistics are misleading based on the fact that the government failed to define "currently having difficulty making their payments.
" You may be very surprised to know that "currently having difficulty making their payments" are only those homeowners who have fallen delinquent on their payments! Not included are the 43% of all American households currently spending more than they earn each year! Logic tells us that if a household is spending more than they make each year, there will come a time when either savings, pensions, etc.
will dry up, or credit cards will become maxed out.
It's simply a matter of time before these households fall delinquent on payment of their mortgages (NOTE: The 43% of American households spending more than they make each year, has increased from 38% in just two years).
For those counting on an increase in income in the near future, government statistics say otherwise.
The U.
S.
Census Bureau indicates that since 2007, the year before the most recent recession, real median household income has declined 6.
4 percent and it is expected to continue declining.
While income is declining, debt is increasing.
The average credit card debt per household has increased from $5,000 to more than $14,000 in the past six years.
Assuming this trend of declining income and increasing debt continues, the 43% of American households currently spending more than they earn each year could be in jeopardy of eventually falling delinquent on payment of their mortgages, which could result in 48 million foreclosures (43% of 112 million households), as opposed to our government's current estimate of 8.
2 million.
That is nearly one half of American households in jeopardy of foreclosure! You would think the government would consider their statistics above a warning and therefore be motivated to do everything possible to assist homeowners in saving our homes from foreclosure.
Right? A few weeks ago, President Obama announced a revision to the Home Affordable Refinance Program (HARP) that would "allow many more struggling borrowers to refinance their mortgages at today's ultra-low rates, reducing payments for some homeowners...
"Is it fair to ask how many are in the "some homeowners" equation? What would you think if the answer was less than 4%? We were not told that even with the new guidelines, HARP is incapable, that's NOT capable, of reaching more than four percent of homeowners.
This is about the same as every other program, federal or state, that has allegedly been made available to distressed homeowners as related to the foreclosure crises.
All have cost taxpayers dearly while helping few people save their homes.
The Making Home Affordable program (HAMP) is a great example of these kinds of programs.
Birthed in February 2009, it cost taxpayers $75 billion.
Only one million households (out of 112 million) have qualified for HAMP.
But as of July of this year, almost one half of participants had dropped out of the program.
The obvious question is "Why does our government continue to spend their time and taxpayers money on programs designed to keep so few Americans in their homes?" It's a question that we continue to try to answer.
Listen to a live call-in broadcast that is trying to answer this question and others relative to the foreclosure crises every Thursday at 9 p.
m.
Eastern Time or access it online at www.
relieveyourdebt.
com.
You can also listen via telephone, (347) 884-9324.
You can source the information in this article and get insight into this issue by accessing the Washington Post article outlining President Obama's recent announcement of revisions to the Home Affordable Refinance Program.
Source...