One in ten American homeowners fell delinquent on their mortgage loan payments or were in foreclosure during the 3rd quarter as the world’s largest economy shed jobs and real estate prices tumbled. The share of home loans thirty days or more overdue rose to a seasonally adjusted 6.99 % while mortgage loans already in foreclosure rose to 2.97 %, both all-time highs in a survey that goes back 29 years, the Mortgage Bankers Association said in a report today. The increase in mortgage delinquencies was driven by an increase of home loans with payments 90 days or more overdue. “Until we see a turnaround in the job situation, we’re not going to see these numbers improve,” said Jay Brinkmann, chief economist of the Washington-based bankers group, in an interview. “We’re seeing more home loans build up in the 90-days bucket as lenders move to offer loan modifications and states put in place programs that delay foreclosures.”
The U.S. economy has lost 1.91 million jobs this year, while falling house prices have made it difficult for homeowners who are unable to pay their mortgage loans or sell their property without incurring a loss in a short sale. Payrolls declined in each month of 2008 through November, the Labor Department said today in Washington. New home foreclosures dropped to 1.07 % from 1.08 % in the 2nd quarter as some states enacted laws to temporarily stop home repossessions and mortgage lenders increased efforts to modify the terms of loans, Brinkmann said.
[...] unknown wrote an interesting post today onHome Loan Wholesale » Home Loan Delinquencies Rise in Wake of …Here’s a quick excerptOne in ten American homeowners fell delinquent on their mortgage loan payments or were in foreclosure during the 3rd quarter as the world’s largest economy shed jobs and real estate prices tumbled. The share of home loans thirty days or … [...]
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