Rough Waters For Home Mortgages – Defaults On the Increase
The predicted recovery in the housing market is in dangerous territory.
Various news sources report that an increasing number of homeowners are falling behind on their mortgages. This comes just when many people have started to see progress.
Are you likely to become one of them?
The foreclosure support and rescue program introduced by President Obama is also in trouble. The program, known as HAMP, The Home Affordable Modification Program, has had about 36,000 defaulters emerge from the first stages of the relief. As few as 430,000 have successfully passed this step in total.
New reports indicate that 3.51% of borrowers were 30 days late in their loan payments in the second quarter, up from 3.31% at the end of last year, according to new data from the Mortgage Bankers Association. This is a huge reversal from 2009 when short-term delinquencies were in steady decline.
Labor markets just have not seen the necessary recovery. New job losses continue to grow and people need a paycheck to make their mortgage payments.
When the economy is “in the toilet” the home lending situation cannot recover. To make matters worse housing starts are also down from the previous year. These have dropped 7% from July ’09 and as well, permits dropped 3.7% year to year.
A new wave of potential mortgage foreclosures threatens borrowers.
“Your greatest armor against losing your own home is a thorough understanding of what mortgage foreclosure is all about and how to avoid it.”
If your home equity is in “Submarine Territory” check out some of the resources in this site to provide you with the knowledge to stop this freight train in its tracks.
Take control of your situation, no-one else will!
