Thursday, May 28, 2009

12% of Americans are behind on Mortgage Payments.

This is staggering. Americans clearly had really bad financial habits, and now that the economy is bad, mortgage payments, the biggest household expense for most families isn't even being made. The amazing thing is that nearly half the nationwide foreclosures are in just four states: California, Nevada, Florida and Arizona.
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    • A record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with good credit. And the wave of foreclosures isn't expected to crest until the end of next year, the Mortgage Bankers Association said Thursday.

      The foreclosure rate on prime fixed-rate loans doubled in the last year, and now represents the largest share of new foreclosures. Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were in the foreclosure process.

      At the same time, almost half of all adjustable-rate loans made to borrowers with shaky credit were past due or in foreclosure.

      The worst of the trouble continues to be centered in California, Nevada, Arizona and Florida, which accounted for 46 percent of new foreclosures in the country. There were no signs of improvement.

      The pain, however, is spreading throughout the country as job losses take their toll. The number of newly laid off people requesting jobless benefits fell last week, the government said Thursday, but the number of people receiving unemployment benefits was the highest on record. These borrowers are harder for lenders to help with loan modifications.

Posted from Diigo. The rest of my favorite links are here.