Now, the bad news:

FORECLOSURES ARE KILLING THE HI RISK PROGRAMS

This means that specific lenders who offered programs for high risk situations are in trouble.  This includes:

POOR CREDIT, HIGH LTV (LOAN TO VALUE), UNDOCUMENTED INCOME, NO MORTGAGE INSURANCE, ADJUSTABLE RATE MORTGAGES (ARMS)

Let’s face it, the mortgage frenzy of the past just got out of hand. Add to that the fact home values have flattened or even declined in certain markets and we have the recipe for our current mess. The result:

SOME HOMEOWNERS HAVE INCREASING PAYMENTS

NO EQUITY LEFT IN THEIR HOME

HAVE NOT IMPROVED THEIR CREDIT

I hope none of you are experiencing the bad news.  However, if you’re in a “tight spot” or foresee some tough roads ahead regarding your mortgage, talk to a trusted mortgage or financial professional. Get good information so you can make good decisions and do it soon. Don’t wait until you run out of options.