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Post by jeffolie on May 28, 2009 10:43:06 GMT -6
Prime mortgage troubles - 1 in 8 mortgages in trouble This situation is getting worse, especially with rates going higher and unemployment going higher. Prices will be dropping as fast as possible into next year with severe societial consequences. The silver lining is that this is making housing more affordable for those that still have a steady income and the courage to buy. But wait until next year. I have long predicted that home prices will not stabilize until sometime in 2010. ============================================================ NEW YORK, May 28 (Reuters) - One of eight U.S. households with a mortgage ended the first quarter late on loan payments or in the foreclosure process in a crisis that will persist for at least another year until unemployment peaks, the Mortgage Bankers Association said on Thursday. U.S. unemployment in April reached its highest rate in more than a quarter century and is still rising, helping propel mortgage delinquencies and foreclosures to record highs. Such economic conditions drove up foreclosures of prime fixed-rate mortgages, which represented the largest share of new foreclosures for the first time since the rapid growth and the ensuing collapse of the subprime loan market.www.reuters.com/article/bondsNews/idUSN2832609020090528
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Post by kramer on May 28, 2009 11:05:25 GMT -6
I wonder how many of those troubled mortgages are people walking away from being under water or purposely going into default in order to get their mortgage balance lowered?
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Post by waltc on May 28, 2009 11:21:00 GMT -6
I wonder how many of those troubled mortgages are people walking away from being under water or purposely going into default in order to get their mortgage balance lowered?
Probably quite a few considering how many people bought homes during the bubble only to find out now that they are upside down on the mortgage.
Then factor in we're losing a half-million jobs a month and I can see where the 1 in 8 comes from.
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Post by unlawflcombatnt on May 29, 2009 1:49:52 GMT -6
There's not going to be any increase in purely residential purchase of homes until the employment situation turns around. The only people buying now are speculators and flippers.
Interest rates are starting to rise, and will probably continue to do so now that 10-year Treasuries are collapsing, which raises their yield, and usually raises mortgage rates in tandem.
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