About Government Refinance and Home Purchase Programs

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The number of Americans falling more than 30 days behind on their home mortgages is ever-increasing and reached record levels in the second quarter of 2009 according to recently released report. We get this from a Washington Post article on the subject:

Record levels of homeowners were behind on their mortgage or in the foreclosure process during the second quarter, according to industry data released Thursday that illustrate the challenges facing government efforts to stem the housing crisis.

The problem has continued to shift from the subprime loans that helped spark the foreclosure crisis to prime borrowers that are struggling under the impact of the declining economy, including rising unemployment, according to the Mortgage Bankers Association. Foreclosure rates are likely to continue to rise until late next year, said Jay Brinkmann, the group’s chief economist.

“It is unlikely we will see meaningful reductions in the foreclosure and delinquency rates until the employment situation improves,” he said.

About 13.16 percent of mortgage loans were delinquent or in the foreclosure process during the quarter, according to the group. That is the highest level ever recorded by the survey, which has been conducted since 1972, and breaks a record set last quarter.

The majority of the problem remains in the Sunbelt states, such as California and Florida, which accounted for about 35 percent of the foreclosures started during the second quarter. “Florida continues to establish itself as the worst state in the union for mortgage performance,” Brinkmann said.

Comments Off on Record number of mortgage delinquencies in Q2 Posted by G.R.A. Admin on Thursday, August 20th, 2009


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