Home Mortgage Defaults On The Rise
The predicted recovery in the housing market is in dangerous territory.
Recently reported on CNN a new wave of lenders are now falling behind on their mortgages. Many people have just started to get their head above water when this apparent new crop of defaulters has begun to emerge.
Are you probable to become one of them?
President Obama’s landmark foreclosure support and rescue program is apparently, also in troubled waters. The Home Affordable Modification Program, known as HAMP has seen only 36,695 troubled homeowners received long-term mortgage modifications in July. Only 434,717 borrowers have successfully made it through the trial phase.
Last year in the second quarter 3.31% were late, elevating to 3.51% this year. This data has been reported by the Mortgage Bankers Association. Short-term defaults were in steady decline during 2009.
We have not seen the necessary recovery in the employment market. People must have a job to meet their mortgage payments.
Difficulties in the labor market make improvements in the housing market impossible. New home construction is also down on a year to year basis by a factor of approximately 7%. From July 2009 new home permits were down 3.7% to date.
A new tsunami of mortgage foreclosures is fast approaching on homeowners.
Best defense to avoid losing your home is a good offense, studying all there is to know about foreclosures and how to avoid them.
Mortgages which are “under water” require research so that you will know your rights and what you can do to protect yourself.
Knowledge is power, ignorance is impotence… your choice!
