Today, as usual, Keith has an extremely timely and informative post about adjustable rate mortgage resets and what we can expect going forward.

While many accounts portray resetting rates as the big factor behind the surge in home-loan defaults and foreclosures this year, that isn't quite the case.

Many of the subprime mortgages that have driven up the default rate went bad in their first year or so, well before their interest rate had a chance to go higher. Some of these mortgages went to speculators who planned to flip their houses, others to borrowers who had stretched too far to make their payments, and still others had some element of fraud.

Now the real crest of the reset wave is coming, and that promises more pain for borrowers, lenders and Wall Street. Already, many subprime lenders, who focused on people with poor credit, have gone bust. Big banks and investors who made subprime loans or bought securities backed by them are reporting billions of dollars in losses.

The upshot of what Keith points out (thank you Keith! Please visit housingPanic.blogspot.com and read Keith's stuff…it's great) is that there is much worse in store for mortgages.

Around here, where I live, houses are still selling, but at 2005 prices. Soon that will be 2004 prices. The issue is that buyers must get loans. And the loans are harder and harder to get. The banks and the funders and the investors are all pulling back. The only loans that are being done easily now are government guaranteed loans and even these have rising standards and are harder to get.

So the point is that you should do something now rather than wait. I can't emphasize this enough. It is going to get worse and worse for about two years, I figure. I would get out from under now and not count on things improving. The handwriting is on the wall.

I am launching Mortgage Relief Formula very soon - the home study course that teaches you how to get your lender to cut your mortgage payments without getting a new loan. You will also learn how to sell your home in nine days even when there are "no buyers". I teach you how to put together a short sale, where you get the lender to accept a reduced amount and you walk away scot free. You'll learn how to buy another house for little or no cash, so you can still realize the dream of being a homeowner. Eventually house prices will rise again, just due to inflation if nothing else. And you will have the stability and tax advantages of being a homeowner and I stress this — even if you have had a foreclosure on your record!

It will be available for just shipping and handling so you can try it out at home and decide whether to keep it or not. I also am going to get you to regular teleseminars where we'll hear from absolute leading experts in debt reduction, mortgage cutting, and credit workouts. And you'll get on line access to private forums where you can post your individual situation and get some help hopefully.

Right now, if you are not a subscriber, you should be. I email you stuff I can't post here. And you'll get instant access to my 25 page "Keep Your Home" report on avoiding foreclosure, avoiding bankruptcy and lowering your mortgage. Privacy always assured.