Can Las Vegas or California Survive the Next Foreclosure Wave?

Liar loans, officially called “Alt. A loans,” or “stated income” loans where borrowers gave little proof of income, could be the next threat to the troubled real estate market in Las Vegas and California.   They were an important part of the buying boom of 2004 and 2005.  Alt. A loans totaled $368 billion in 2006, up 28% from 2005.  They grew faster than subprime loans, but some believe it can shrink faster than what we have witnessed in recent months.

This was the major reason California passed a 90-day foreclosure moratorium that began June 15, 2009.  Every 30 seconds someone loses a home to foreclosure in California.  90,000 every month. Earlier this year Florida passed a voluntary 45-Day freeze on all new foreclosures. Nevada has yet to pass a foreclosure moratorium but they remain the number one state in the nation in the number of foreclosures, with one out of every 68 homes in foreclosure. If you believe you hold one of these loans, take a few minutes to fill out this questionnaire and ensure your home does not end up in foreclosure http://free-foreclosure-stop.com

Alt. A loans were most popular with buyers seeking investment property in addition to professionals and self-employed people who wrote off a lot of income, so their tax returns did not reflect what they were earning.  Now, five years later, with home prices down, investment property is expensive to maintain and owners are finding it very difficult, if not impossible, to refinance another loan.   Five-year, interest only Alt. A loans are coming due this year.  When the California foreclosure moratorium ends in September will we have more foreclosures hit the fan?  We do not know which Wall Street firms purchased mortgage-backed securities comprised of Alt. A loans.  Will September bring a second wave of foreclosures, lay-offs, and bank closures?

If you are caught in the current foreclosure crisis, or think you may be caught in the next wave, there are answers.  Contact your bank or lender, contact Freddie Mac or Fannie Mae for help with the federal loan modification programs.  Non-profit organizations and companies like LIFE – Leaders In Financial Education www.leadersinfinancialeducation.com offer no cost personal reviews, a financial analysis and options.   Start now, get information before the moratorium ends.  You will be surprised at the number of answers that exist.  http://www.free-foreclosure-stop.com

Tagged with: Bank Closures • California Foreclosure • Foreclosure California • Foreclosure Loans • Foreclosures • Free Foreclosure • Homes In Foreclosure • Income Loans • Investment Property • Liar • Moratorium Ends • Mortgage Backed Securities • Proof Of Income • Questionnaire • Second Wave • Subprime Loans • Tax Returns • Wall Street • Wall Street Firms • Where Borrowers

Filed under: Foreclosure Information

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