If you asked me what is the question that i receive most from my clients it would have to be the following: What do you think will happen with the foreclosure situation? To be 100% honest, I did not have a good answer for them over the past few months and I was expected to be the expert. Being a talk show radio host, having run a mortgage, title, real estate, and construction company, I should have the answer right?

Well after reading all of the financial magazines over the last few months and seeing all of the gurus that predicted this "Recession" getting all the press, I decided to make my predictions now. So here goes my bold predicitions surrounding the foreclosure situation:

* The government will release a loan program by Jan. 9th, 2008 backed by the Federal Housing Administration "FHA" that will establish the guidelines that will DICTATE to lenders how to handle distressed property situations.

* The FHA Hope 4 Homeowners program will be the criteria by which all major lenders will be REQUIRED to implement for those homeowners who fall into a certain financial criteria.

* Lenders will no longer be encouraged to implement this loan program, but REQUIRED and the government will back up that requirement through allocation of funds from the Troubled Assets Relief Program "TARP."

* Loan modifications will be handled the same way as a refinance is. The current appraised value will determine the new mortgage amount. The loan will be 90% of the current value of the home.

* The government and your current lender will share in any profits of the house when the homeowner sells their home. This is to offset the balance that has been forgiven. The new payment will be drastically reduced because it is based on the new loan amount.

* The financial criteria will be centered around a homeowners mortgage debt to income "DTI" ratio. At this point, the guideline is that your total mortgage payment should be no greater than 38% of your total houselhold income. That percentage will be pushed down to 31%.

* They will govern through licensed entities in the banking sector how these loan programs are implemeted. Meaning, the loan modification process will be very similar to refinancing your home with your local bank or mortgage broker.

* They will address the many modification and short sale sweat shops popping all across the Internet by referring to the licensed entities to incorporate these negotiations with the lenders.

I will continue adding to these predictions, but I have got to get ready for today's radio show. Catch you there