Foreclosures Continue Even with Mortgage Modifications

Online, December 1, 2010 (Newswire.com) - Noted financial advisor Dennis Tubbergen keeps an eye on the housing market and many other financial topics in his online blog and in his monthly newsletter Moving Markets™. Tubbergen, who is CEO of USA Wealth Management LLC, a federally registered investment advisory company, believes the housing market cannot improve until unemployment numbers become substantially better and the U.S. begins to deal with the excessive amount of debt we are currently facing.

The most recent glimmer of hope for some homeowners facing foreclosure comes in the form of mortgage modifications. But the reality is this program hasn't helped as many homeowners at risk of foreclosure as originally anticipated.

According to a Bloomberg Businessweek report published November 10, 2010, nearly 7 million homes in the U.S. are in the midst of foreclosure or have already been taken from homeowners. And while some 1.4 modifications were initially granted, about half of those modifications were cancelled.

Is there any end in sight for desperate homeowners?

"While no one wants to hear a gloomy forecast, I believe the housing market is not likely to bottom until at least 2012," states Tubbergen. "Unemployment and housing are closely linked. Between these two economic indicators, a housing recovery soon is not looking good."

The Bloomberg article goes on to say that even borrowers who are approved for the modifications can end up in foreclosure because of back payments owed, penalties, and late fees that suddenly crop up and are insurmountable for homeowners already at a financial breaking point.

"There are 11 million homeowners who are currently 'upside down' in their homes, owing more on their mortgages than the homes are worth," concludes Tubbergen. "Unfortunately, this number is likely to get larger over the next 18 to 24 months."

For more information on Dennis Tubbergen's views, visit www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.