More Than Likely The Economy Will Crash Again
January 2, 2010 by admin · Leave a Comment
Just when you thought things were turning the corner…
looks like we could be in for a double dip recession.
Here’s why:
#1 While the subprime crisis may be showing signs of stabilizing, the ARM crisis is just beginning to rear its ugly head.
According to one business journalist:
“The big wave of Option ARM resets has yet to come, and given the drop in home prices, refinancing won’t be realistic.”
Look for more short sale coming in 2010.
#2. Municipal Defaults: yep, local towns and counties are feeling the pinch with foreclosures and tax defaults draining their coffers. And when a town goes broke, it will put their resident’s property even further underwater.
#3. Commercial Real-Estate Collapse: The second largest chain of malls has already declared bankruptcy. Obligations needing refinancing in the commercial market are in the trillions.
And most of them, even with positive cash flows, are as underwater as residential mortgages. As these businesses crash, they will cause even more unemployment.
#4. Loan modifications aren’t working. Unless and until there is meaningful principal reduction, most people getting a loan modification will stop making their payments if they are $100,000+ upside down on their home. And there are A LOT of people upside down. There will be lots of “jingle mail,” where the homeowner just sends back the keys to the bank, this year.
Look for more short sale coming in 2010.
Are you seeing a theme yet?
Look, you can either be a victim of this economy, or you can swing it to your advantage by learning the easy way to find and rapidly resell short sales.
