About Government Refinance and Home Purchase Programs

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A couple of reports today show that despite “green shoots” in the economy more and more people are falling behind on their mortgages still. Here is some info from a piece on the subject over at the WSJ online:

The U.S. housing market continued to deteriorate in the third quarter as even the most credit-worthy borrowers increasingly fell behind on their mortgages, highlighting the problems policy makers have faced in trying to address the problem.

A new report from the Office of Thrift Supervision and Office of the Comptroller of the Currency found that the percentage of current and performing mortgages dropped for the sixth consecutive quarter, as foreclosures in process topped 1 million mortgages at the end of September. The report covers roughly 34 million loans totaling $6 trillion in principal balances, or approximately 65% of the U.S. mortgage market.

The regulators said that serious delinquencies, loans that are at least 60 days past due, increased across all loan categories and climbed to 6.2% of the loans in the portfolio during the third quarter. The report said that just 67.7% of option adjustable-rate mortgages were considered current at the end of the third quarter, while 27.9% were either seriously delinquent or in the process of foreclosure.

The most troubling finding was that even borrowers considered “prime,” or the least risky, increasingly can’t pay their loans. The report said that 3.6% of prime mortgages were more than two months behind on payments, more than double from a year ago.

We specialize in helping people prevent falling behind by refinancing out of ARM’s and other undesirable mortgages before they find themselves late. If you fall into that category contact us in the sidebar and we can look at your options.

Comments (0) Posted by G.R.A. Admin on Monday, December 21st, 2009


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