Do You Know the Severity of the Foreclosure Crisis?
==== ====If You Need Help Now, Check This Out.http://relieveyourdebt.com/==== ====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 reallyhappening with regard to home foreclosures. But you may be in for a surprise, especially if you area realtor or mortgage lender, anxiously waiting to refinance all of those Home AffordableRefinance 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 dont have a clue and would like toknow 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 5.7million foreclosures are imminent. As a result, a total of 8.2 million homes will eventually be lost toforeclosure.* The estimated 8.2 million anticipated foreclosures are based on the number of homeowners whohave either defaulted on their payments, or those who are currently having difficulty making theirpayments.Since these statistics are not consistent with my experience in speaking to hundreds ofhomeowners every month, I was compelled to conduct research that has ultimately uncovered thetruth about the foreclosure crises.I discovered that these government statistics are misleading based on the fact that thegovernment failed to define currently having difficulty making their payments.You may be very surprised to know that currently having difficulty making their payments are onlythose homeowners who have fallen delinquent on their payments! Not included are the 43% of allAmerican households currently spending more than they earn each year!I dont know about you, but logic tells me that if a household is spending more than they makeeach year, there will come a time when either savings, pensions, etc. will dry up, or credit cardswill become maxed out. Its simply a matter of time before these households fall delinquent onpayment of their mortgages. (NOTE: The 43% of American households spending more than theymake each year, has increased from 38% in just two years)For those counting on an increase in income in the near future, government statistics sayotherwise. The U.S. Census Bureau indicates that since 2007, the year before the most recentrecession, real median household income has declined 6.4 percent and it is expected to continuedeclining.While income is declining, debt is increasing.The average credit card debt per household hasincreased 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 Americanhouseholds 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 governments current estimate of 8.2 million.That is nearly one half of American households in jeopardy of foreclosure! You would think thegovernment would consider their statistics above a warning and therefore be motivated to doeverything possible to assist homeowners in saving our homes from foreclosure. Right?A few weeks ago, President Obama announced a revision to the Home Affordable RefinanceProgram (HARP) that would "allow many more struggling borrowers to refinance their mortgagesat todays ultra-low rates, reducing payments for some homeowners . . . Is it fair to ask how manyare in the some homeowners equation?What would you think if the answer was less than 4%? We were not told that even with the newguidelines, HARP is incapable, thats NOT capable, of reaching more than four percent ofhomeowners. This is about the same as every other program, federal or state, that has allegedlybeen made available to distressed homeowners as related to the foreclosure crises.All have costtaxpayers 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 112million) have qualified for HAMP.But as of July of this year, almost one half of participants haddropped out of the program.The obvious question is Why does our government continue to spend their time and taxpayersmoney on programs designed to keep so few Americans in their homes? Its a question that wecontinue to try to answer.I welcome your opinion and feedback in answering this question and others relative to theforeclosure crises during my live call-in broadcast every Thursday at 9 p. m. Eastern Time. Youcan listen to it online at www.relieveyourdebt.com.To listen via telephone, dial (347) 884-9324.Usethe same number to call in and voice your perspective and opinion.Also, I suggest you source the information in this article and get insight into this issue byaccessing the Washington Post article outlining President Obamas recent announcement ofrevisions to the Home Affordable Refinance Program.Doug Johnson has been a consumer advocate and radio commentator for more than 12 years. Goto the link to tune into the rebroadcast of some of Dougs radio programs about different mortgagerelief programs (relieveyourdebt.com/dougs-live-call-in-show/) he has vetted for consumers whoare facing foreclosure or hear how some have lost their homes to foreclosure.The link to the Washington Post article is www.washingtonpost.com/business/economy/the-home-affordable-refinance-program-harp-what-you-need-to-know/2011/10/24/gIQAXFDUDM_story.html/.==== ====
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