A local agent has said that a company meetings they are told that the national number is around 11 million. This same figure was mentioned when we asked our other agent in the market we are buying in. They are 1000 miles apart. Does 11 mil sound right?
The power of this magnitude to release or evict by the Fed Gov can be wielded to bring a nation to its knees.
When you factor in the option arms-pick’n’pay, alt-a resets, the overhang could well reach that number. Also when you consider that somewhere around 20 percent of all homeowners are underwater with their mortgages and there’s around 80 million mortgages out there, the numbers get pretty scary.
The mortgage modification business with federal giveaways was not designed to help the homeowner. Rather it was created to give a price support to the banks so they wouldn’t have to take major hits to the value of their mortgage portfolios.
The upside to this, if there is one, is that the banks do not want anymore foreclosures. Therefore, they are more willing than ever to cut principal and cut interest way down and extend the loan for up to 40 years.