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Prime Mortgage Crisis Looming

February 17, 2009

Mortgage modifications hit a record in December, 2008. The troubling issue is that many of these modifications are from PRIME borrowers who are attempting to avoid foreclosure. We have heard all about the subprime mortgage crisis, but now it seems to be flowing into prime borrowers as well. The initial problem was caused by subprime borrowers having the inability to pay their loans which caused the economy to head south fast. Now prime borrowers are feeling the pinch and are attempting to modify their current mortgages. Is this something that you should consider?

Now that layoffs are commonplace in America, many more “prime” mortgage borrowers have a reason to be concerned. It is almost impossible to make mortgage payments being unemployed and that is what many unfortunate Americans are having to cope with. Two areas of the economy that are going to feel this economic downturn very hard are print media and retail. Print media is a dying horse as the Internet has changed the way we access information. It is likely we will see many job cuts in this industry. Retail will struggle because consumers are only buying staple products like toilet paper and laundry detergent. Manufacturers and high end retailers are likely to shed jobs in the next six to twelve months as well.

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