Delinquencies on home-equity loans hit record

According to this Los Angeles Times article, Delinquencies on home-equity loans hit record, the number of delinquent home equity loans reached 3.52% in the 1st quarter of 2009. The article cites mounting job losses as the primary culprit. The article also mentions that credit card delinquencies reached a record of 6.06% during the same period.

Per my previous posts, it is "only going to get worse". If you cannot afford your home loan payments (mortgage(s) and/or home equity loan(s)), your best option is to request a loan modification in order get your monthly payments reduced. If that does not work and/or your home is worth less than the debt than a short sale is your next best solution. Simply defaulting is not a good answer. If you need assistance in stopping foreclosure proceedings feel free to contact HaltingForeclosures.com.

"Stress Tests a Sham"; Banks Have $2 Trillion Dollar Hole While Credit Card and Commercial Real Estate Loan Defaults Soar

According to this interview with William Black, a former bank regulator, author and current law and economics professor at the University of Missouri, the "Stress Tests" are a "sham"and US banks need $2 trillion dollars to remain solvent. Since he directly attributes this figure to Treasury Secretary Tim Geithner I am guessing that the real number is much higher since according to Mr. Black the "stress tests" do not factor in bank reserves or asset quality (i.e. the increasing defaults on all types of loans including credit cards and commercial real estate loans). Additionally, Mr. Black states that commercial real estate is in for a "world of hurt". As I stated previously, there is going to be a surge in the number of foreclosures hitting the market as banks fail and are forced to finally liquidate the foreclosures they have artifically been holding back and most of the large banks in the US are already insolvent and will need to be nationalized soon.