Kathianne
08-21-2009, 07:56 AM
I don't think so...
http://www.ft.com/cms/s/0/4f8283a8-8da3-11de-93df-00144feabdc0.html?nclick_check=1
Mounting joblessness fuels US housing crisis
By Saskia Scholtes in New York
Published: August 20 2009 17:59 | Last updated: August 20 2009 17:59
More than one in every eight homeowners with a mortgage was behind on home loan payments or in some stage of foreclosure at the end of the second quarter, as mounting unemployment aggravated the housing crisis, the Mortgage Bankers Association said on Thursday.
The percentage of loans that were in foreclosure or at least one payment past due rose to 13.16 per cent, the highest increase since the MBA began keeping records in 1972 and a jump of more than a percentage point since the first quarter.
Jay Brinkmann, chief economist at the MBA, said signs were growing that mortgage performance is being affected more by unemployment than by the structure of risky home loans, indicating a new stage in the foreclosure crisis that may not be easily addressed by government loan modification programmes.
While the proportion of foreclosures started on borrowers with subprime adjustable-rate mortgages fell dramatically in the second quarter, foreclosure starts on traditional prime fixed-rate loans saw a dramatic increase. Prime fixed-rate loans accounted for one in three foreclosure starts at the end of the second quarter. A year ago they accounted for one in five.
“There has been a shift in the problem from one driven by the types of loans to one driven by macro problems in the economy and drops in house prices,” said Mr Brinkmann....
I've never been behind on mortgage payments, but I did fear prices might fall further and didn't want to wait for some 'turn around.' With the massive debt and if somehow they manage to get health care debacle passed, turn around will not be in my lifetime.
http://www.ft.com/cms/s/0/4f8283a8-8da3-11de-93df-00144feabdc0.html?nclick_check=1
Mounting joblessness fuels US housing crisis
By Saskia Scholtes in New York
Published: August 20 2009 17:59 | Last updated: August 20 2009 17:59
More than one in every eight homeowners with a mortgage was behind on home loan payments or in some stage of foreclosure at the end of the second quarter, as mounting unemployment aggravated the housing crisis, the Mortgage Bankers Association said on Thursday.
The percentage of loans that were in foreclosure or at least one payment past due rose to 13.16 per cent, the highest increase since the MBA began keeping records in 1972 and a jump of more than a percentage point since the first quarter.
Jay Brinkmann, chief economist at the MBA, said signs were growing that mortgage performance is being affected more by unemployment than by the structure of risky home loans, indicating a new stage in the foreclosure crisis that may not be easily addressed by government loan modification programmes.
While the proportion of foreclosures started on borrowers with subprime adjustable-rate mortgages fell dramatically in the second quarter, foreclosure starts on traditional prime fixed-rate loans saw a dramatic increase. Prime fixed-rate loans accounted for one in three foreclosure starts at the end of the second quarter. A year ago they accounted for one in five.
“There has been a shift in the problem from one driven by the types of loans to one driven by macro problems in the economy and drops in house prices,” said Mr Brinkmann....
I've never been behind on mortgage payments, but I did fear prices might fall further and didn't want to wait for some 'turn around.' With the massive debt and if somehow they manage to get health care debacle passed, turn around will not be in my lifetime.