Foreclosure Outlook Worsens
The foreclosure outlook was 3% higher than anticipated for the 1st quarter of the year. In the midst of the recession and all the talk about the stimulus package not much seems to be happening. Analysts hoped that the foreclosure market would slow but in fact it got much worse. Because the unemployment rate continues to rise, banks continue to foreclose on homes (some held off while the Obama administration initiated a foreclosure plan) and the banks are lending money received from the stimulus like expected.
Banks can choose whether or not they want to do loan modifications with the money they received and right now they seem to choose not too. Experts are predicting that the crisis won’t begin to improve until sometime 2010.
