Well uh..more bad news on the nations foreclosure forefront. Foreclosures are up 8% this month and 55% year over year. The top foreclosure state right now is Nevada with foreclosure activity hitting 1 out of ever 106 household an unbelievable number! The next state is my home state of California where 1 out of every 182 homes are affected by foreclosure.
This is very disturbing to me, I hope it gets better soon but honestly I don't think it will. In my humble opinion the worst is yet to come. We have hundreds of thousands of borrowers in negative amortization arms, subprime arms that have all yet to reset still. Plus add in the fact that values have plummeted to percentages that we have not seen since the depression.
In conclusion the lenders and primarily the investors on the secondary market will be getting stricter on loan guidelines. I know they have already pulled back dramatically and increased down payment requirements and underwriting guidelines. They have also dropped several programs like subprime, Alt-A and the good ole' 80/20 I think stated income loans may be next unfortunately.
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