Stumbling block to economic recovery: Rising jobless rate accelerating foreclosure crisis - San Jose Mercury News

Stumbling block to economic recovery: Rising jobless rate accelerating foreclosure crisis - San Jose Mercury News: "Stumbling block to economic recovery: Rising jobless rate accelerating foreclosure crisis

By Alan Zibel and Tammy Webber

Associated Press
Posted: 07/16/2009 01:00:46 PM PDT

WASHINGTON — Relentlessly rising unemployment is triggering more home foreclosures, threatening the Obama administration's efforts to end the housing crisis and diminishing hopes the economy will rebound with vigor.

In past recessions, the housing industry helped get the economy back on track. Home builders ramped up production, expecting buyers to take advantage of lower prices and jump into the market. But not this time."

No recovery in California until 2011, forecast says - Los Angeles Times

No recovery in California until 2011, forecast says - Los Angeles Times: "Unemployment in California and Los Angeles County will increase well into 2010, continuing to exceed the highest levels since at least the end of World War II, according to a local economist whose projections for the Southland economy are among the most negative to date.

Continued sluggishness in key industries such as construction, retail, international trade and hospitality will keep the state from a full recovery until 2011, said the report, released by the Kyser Center for Economic Research at the Los Angeles County Economic Development Corp."

Loan Modification programs may work for unemployed

REALTOR® Magazine-Daily News-Unemployed Might Get Anti-Foreclosure Help: "The Obama administration is reportedly considering a program that would give loan forbearance to the unemployed. The aim of the program is to provide help without distorting the housing market.

The program would augment the federal loan modification program, giving unemployed workers more time and financial leeway to qualify for a new loan.

So far the loan modification program hasn’t been very successful for a variety of reasons, including the declining equity many troubled borrowers have in their homes and rising unemployment figures that make lenders unwilling to participate."

I will believe this one when I see it. So far almost all these initiatives have been good for the lenders and not the borrowers. This one might be useful for the temporarily unemployed.

I suspect it will still have some sort of taxpayer payout to the lenders.

loan modification programs

State Bar Cracking Down on Loan Modification scam

News Releases from California state bar on loan modification scams

The State Bar will continue to take every step to see to it that any attorney who engages loan modification fraud will no longer be permitted to practice law, and will cooperate with prosecutors in their pursuit of such criminal conduct.

Please note the state bar went after a lawyer who formed a partnership with a non lawyer.


If you are working with an "attorney backed" loan modification firm you are probably working with a lawyer conducting business in an unethical manner or an outright scam. 

If you wish to work with an attorney make sure you hire a law firm. Speak with the attorney and ask if he is representing you.  If he says, make sure his retainer says so.  Don't hire a loan modification firm with attorneys on staff.  That is almost definitely a "bullshit" operation. 

 

Loan modification info