December 22, 2008

Mortgage Defaults getting worse; MUCH WORSE

New York, NY -- My sources inside Citibank, Bank of America, JPMorgan Chase and other large US financial institutions have told me the number of home mortgage borrowers that are defaulting after their mortgage loans are modified is continuing to rise. More ominous, they say there is no sign of the rising defaults leveling off.

The data outlined that after 6 months almost 37 percent of mortgage loans modified in the first quarter of 2008 were still 60 days or more in the red. This means they the bank and the mortgagee renegotiated the delinquent loans in early 2008 to try to prevent foreclosure, but even the new mortgage terms haven't succeeded.

This does not bode well for 2009.

Believe me when I tell you, the financial crisis is going to get very much worse in 2009. We will see worldwide economic Armageddon in 2009. Nothing can stop it. It will make the Great Depression of 1929 look like child's play.