What to expect of 2011 and on?
2011 will be a great year.
The economy will stop dropping, will touch bottom. It will most likely remain there for a few years; For some areas of the economy and the Country, it will probably continue to drop throughout 2011 and part of 2012. These unlucky areas will be the areas that have not been greatly affected so far, like the big homes, the expensive condos, etc... In communities where prices have not dropped more than 10 or 20%.
I think we will see the typical 50% drop in prices throughout the Country, not only in a few areas, so if you have been spared, brace yourself.
The Government will continue to inject money into the economy, to boost what would eventually should pull us out of this depression, but in general, it won't be effective, the most it will be able to do, is to keep it sort of stable. We will learn to adjust to the world as we had it in 2009, and we will adjust, it will help us be more conscious of our spending, will teach us to save, to use credit wisely, to buy what we need, not what we want. Our nation will become better, we will be more critical of our government, the abuse by big companies. We will see many, many changes in technologies, in the energy sources, in the finance world, and all those changes will be good, citizens will again become important, big companies will have to deal with what Americans want and stop trying to get our last penny.
The big Oil, insurance, pharmaceuticals, banks will become less and less popular, and the voters will become more and more indignant of the damage these companies have inflicted.
Americans will be more and more entrepenurial, as the best and more effective strategy against unemployment and sub-employment, from 15% entrepeneurs we will go to 25% in this decade.
Business that create efficiency, that save money, that create solutions instead of products, business that care about consumers, products that are basic, products that are trully useful will thrive and will become strong and lead the way.
In the end, we will be better, every year we will improve, while our economy absorbs the abuse of the last decade. That will be the theme of the decade.....ABSORTION.

IS IT OVER?....NOT

You can see that the housing and credit crisis is not over, we still have 2011 as a major shakedown. Be prepared for more of the same for another year. The Option ARM loans are the ones that will be reseting in 2011, the short term advantage is that rates are low, but how long will they stay low, is another question.

The number of days since the average borrower in foreclosure last made a mortgage payment is close to 500!!!


Banks can’t foreclose fast enough to keep up with all the people defaulting on their mortgage loans. That’s a problem, because it could make stiffing the bank even more attractive to struggling borrowers.
In recent months, the number of borrowers entering severe delinquency — meaning they missed their third monthly mortgage payment — has been on the decline, falling to about 700,000 in October, according to mortgage-data provider LPS Applied Analytics. But it’s still more than double the number of foreclosure processes started.
As a result, banks are taking progressively longer to foreclose. The average borrower in the foreclosure process hadn’t made a payment in 492 days as of the end of October, according to LPS. That compares to 382 days a year ago and a low of 244 days in August 2007.
In other words, people who default on their mortgages can reasonably expect, on average, to stay in their homes rent-free more than 16 months. In some states such as New York and Florida, the number is closer to 20 months.
That’s a meaningful incentive, and it’s likely to grow unless banks manage to boost their throughput. Speeding up the process won’t be easy, as demonstrated by the banks’ continuing legal troubles related to robo-signers, bank employees who signed foreclosure affidavits without properly checking the required loan documentation.
Millions of Americans still are paying their mortgages even though they owe more than their homes are worth. The more banks’ backlog grows, the more likely they are to join it, adding to the already giant pile of foreclosures weighing on the housing market