LPS Applied Analytics recently announced that there are $464 Billion in mortgages currently in Foreclosure and that Americans are now behind on mortgages worth $1.4 Trillion. Several economists believe that
something really bad could be coming down in the coming months. In
fact, leading economists are warning of a new financial crisis brewing
that could possibly be worse than the crisis we faced in 2008 and that
we could see a collapse of some BIG U.S. banks.

Chris Whalen, the Managing Director for Institutional Risk Analytics stated recently in a Politico article, "Non-payment by borrowers and mounting foreclosure backlogs are creating the conditions for the
collapse of some of the largest U.S. banks in 2011."

Many say that there are banks too big to fail an that we cannot allow them to. But we know now that T.A.R.P. didn't work. Those 6 or 7 "too-big-to-fail" banks control over 1/2 of all deposits and most of
those were made even larger by T.A.R.P. But there's another issue with
the smaller Savings and Loans that exist in our communities. When those
little banks face both residential and commercial mortgages failing, we
may see a wildfire spread of enormous consequences that the Fed won't
be able to contain.

Several government and large banks stated this week that they were going to freeze foreclosures for the next few months. This is great for homeowners during the holidays and comes as good news to those
homeowners wanting to do the honorable thing and try every option they
can to keep from going into foreclosure. However, with loan
modifications being rare and/or unappealing, this is only prolonging the
inevitable and making it worse. Case in point, if you make $115,000
income a year and you owe $550,000 there's no rework for that scenario
under the President's program that will makes sense. And what happens
in the first few months of 2011 AFTER the freeze is lifted and all those
stalled foreclosures start moving forward again? With an average of
180,000 to 200,000 foreclosures a month, how are we going to accommodate
the flood of a million or more homes hitting the market? The good news
is that the freeze may help many who are conducting Short Sales on
their homes and who are feeling the time crunch.

Time will tell, however we should all be looking to the horizon because a huge storm is looming and time is running out!

By the way, if you or someone you know is at risk of losing a home to foreclosure, please know that there are new options available to avoid this devastating occurrence. And know that there is someone here you can
trust to help. As a Certified Pre-Foreclosure Specialist, I understand
the ins and outs of Short Sales and Loan Modifications. I am also a
Wachovia and World Bank trained Pre-Foreclosure expert and well educated
in the Government’s new H.A.F.A. and H.A.M.P. programs for helping
homeowners facing foreclosure.

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