How do you feel about the economy?

The president 75 billion dollar mortgage rescue plan is on the books officially. Some believe this plan will not only fight foreclosure but will save the market form going into a much deeper recession or worse depression. Over the few weeks the president stated that the worst is yet to come. However, this week he changed his outlook completely by viewing the future with more a optimistic view.

However, what did see or discovered that made him went from seeing the worse case scenario to seeing the end of the housing crisis and massive job loss? The market is truly saying something else when you look at the news about the housing marketing which lost some more grounds this week. Also this week more jobs lost send additional workers to the unemployment line.

Economist sees these problems going continue into 2012 with additional failure of mortgages coming in 2010 and slowing down by 2012. There are commercial mortgages that is to unwind or completely blown up. Also what about the residential mortgages that the $75 million stimulus package will not help because the homeowner can not refinance or take advantage of the loan modification due the new qualifying criteria.

Today banks are increasing their credit scores requirement making it even more difficult for borrowers to meet. Also mortgage companies that usually did 85 percent of the loans in America are now going out of business or they just don’t have the line of credit to lend as normal. On the other hand government loans are increasing in their loans amount they willing to insure, which can reach $410,000 for a single family.

The greatest enemy to any single loan is Job lost or health care. Why healthcare? Well when a homeowner becomes sick and over time loose income due to taking off with no sick pay this is devastating to the family and the mortgage can easily fall behind. This is one of the concerns that the new administration is looking to solve the issue of healthcare.


So what will the verdict be when it comes to fighting foreclosure we will see. The date to focus on now is March the 4th if you are fighting foreclosure. On that day lenders will be inundated with calls for this new loan modification. Apparently the mortgage companies will be compensating by the government to process the loan modification. Also those homeowners who stay current each year will get up to a thousand dollars each year for paying their mortgage on time.