Recovery? Then why do mortgage loan delinquencies keep climbing?
Filed under: Home, Real Estate, Mortgages
The proof, they say, is in the pudding. Maybe it ought to be in the foreclosure rate?
Yes, I know we are being told on Sunday morning power-breakfast talk shows that the nation's economy is improving. But the latest survey on the delinquency rate for mortgage loans from the Mortgage Bankers Association would seem to indicate otherwise.
You can read the report itself for the hard numbers, but, the bottom line is, the delinquency rate has now broken the record set just this past quarter.
And, read what the MBA's Chief Economist, Jay Brinkmann, writes in the report: "Despite the recession ending in mid-summer, the decline in mortgage performance continues. Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP."
Wow. Sounds like a snide remark to me. But also a truthful one. Too bad the politicians in Washington don't seem capable of such truth-telling.
The fact is, as this latest survey clearly shows, we are still very much suffering economically....if not on Wall Street, than certainly on Main Street.And, we are no longer talking about subprime foreclosures.
Again, Jay Brinkmann of the MBA : "Prime fixed-rate loans continue to represent the largest share of foreclosures started and the biggest driver of the increase in foreclosures."
Ask homeowners facing or going through foreclosure whether they think the economic picture is brighter? I dare say the answer you get will not be what you hear on the Sunday morning news maker shows.
Reader Comments (Page 1 of 1)
11-20-2009 @ 6:06PM
mjames2497 said...
THERE SEEMS TO BE A LOT OF PEOPLE OUT OF TOUCH WITH REALITY. THE ONES WHO SAY IT'S GETTING BETTER HAVE ROSE COLORED GLASSES ON.
"KEEP IT SIMPLE STUPID"......UNTIL THE SO CALLED GOVERNMENT DOES SOMETHING ABOUT GETTING OUR MANUFACTURING JOBS BACK, FORECLOSURES WILL CONTINUE. FORGET ABOUT STIMULIS PACKAGES...THEY THREW AWAY BILLIONS OF DOLLARS SO BANKS CAN GET RICH MEANWHILE WE ARE STILL SUFFERING.
WHEN IS SOMEONE GOING TO DO WHAT IS RIGHT IN A COUNTRY THAT HAS DONE NOTHING BUT WRONGS THE LAST 20 YEARS
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11-20-2009 @ 1:36PM
Unemployed said...
Until the Government wakes up and starts helping the UNEMPLOYED HOMEOWNERS from being foreclosed on the housing market is going to see a MEGA WAVE of foreclosures that is going to hurt everyone.
Its time they step up to the plate and enact HEMAP or take paid back TARP funds and help those here on MAIN STREET, It is our turn! NO MORE TO BANKS, they are doing nothing to help the Unemployed.
As Americans we need to be calling our REPRESENTATIVES and telling them they need to do something NOW not later!
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11-21-2009 @ 12:43AM
So. Cal Homeowner said...
People would like to refinance to take advantage of these low rates....BUT we don't have enough equity!!!!!
We bought in 2003, have faitfully made payments on time, and still we are $100,000 upside down!! Many others are jumping ship, and it keeps bringing down the prices....
PLEASE, Govt. Give us homeowners who are upside down, BUT making their payments, and trying to stay in their homes...NOT feel so stupid! Is this going to just keep losing thousands of dollars each year?? why should we make our payments....it IS a stretch, and it feels like it is easier to start over...and do what so many are doing.....NOT making payments for many months while the govt. relaxes the foreclosure process. It is frustrating to try to do the right thing...when so many are not! I value my credit rating,, and it seems that with so many people having foreclosures and shortsales on their credit...the standard is not important anymore???
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