This is the headline I saw in the newspaper this morning, The article reported that senators released a report lately suggesting a "rescue fund" for borrowers who are at risk of foreclosure. Combined with a nation's top trade group for Realtors offerring new projections that the housing slump is worsening. This kind of explains the real estate market.
The predicted median price for existing homes will drop .7 percent in 2007.
Over 1.8 million adjustable rate mortgages will be resetting at higher interest rates this year. The resulting higher payments will be sure to add to the increase of more mortgage foreclosures.
Due to the high amount of foreclosures, Currently, B/C lenders are closing 1 a day. Unless the system is changed, there will be more foreclosures and no more lenders to help credit challenged borrowers.
What do you think should be done? How can we stop the foreclosures? How can we offer a better mortgage product to credit challenged borrowers?