Saturday, August 22, 2009

1 in 8 mortgage borrowers behind on their mortgage

More mortgage borrowers are falling behind:
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. ...

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...

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.


  1. Thank you for the post looks like there is going to be more opportunity to by properties at a discount.

  2. Of course you're going to want to do the best for yourself you can, but don't you find it at least 'a little' distasteful to so blantantly express your joy at others' misfortunes?

  3. where, exactly, do you see "joy" in his/her post?

  4. So what if he was. I dont find it distasteful. These were adults who borrowed money they could never dream to pay back. THAT is what is distasteful.

    Fat lazy americans and their entitlements. THAT is what is distasteful.

    So Lance, Im for sure finding joy in both the banks who took the gamble of loaning idiots who could never afford to pay them back closing shop. Its a beautiful thing that brings a tear to my eye. What goes around comes around.

    Soon it will be my turn to buy a house in your area, I hope its yours. And believe me, you will be the one finding it distasteful in that situation and I will find it sweet as honey.

  5. Lance likes to shoot the messenger. All I did was quote a factual news story. I didn't even add any commentary. Lance is probably one of the people behind on his mortgage and needed to redirect his anger somewhere. It's a defense mechanism called displacement.

  6. I like these reports. They show me another side.

    I have a mortgage. I put an extra $500 to $1,000 against it every month.

    I'm not sure why I'm doing it as the interest rate is very low and it is deductible.

    I'm sure someone, somewhere is behind but not in my house, not on my street, not in my neighborhood...

    A couple of my neighbors paid off their houses.

  7. "I'm sure someone, somewhere is behind but not in my house, not on my street, not in my neighborhood...

    Their rates reset in a couple months, give them time.

  8. Even more curious about lance - his area is one of the few areas in the US where people buying at the peak arent really underwater. Why does he care so about others far from him?

  9. Lance just cares a lot about others....

    or has a lot of time on his hands.

  10. I know a couple of people who feel that because the bank made a stupid loan, they shouldn't have to pay it back. One goes further by stating that if he sued the bank for making the dumb loan he'd win because he was upfront about his very low income.

    That's crazy. That's crazy, right? Please tell me that's crazy.

    These people haven't paid in 5 months and 9 months respectively and haven't worked out a deal nor have they gotten scary letters from the bank. Why are they still in their houses?

    PS, it's not that I would take pleasure in seeing them evicted. But when they spend money on fancy cars (leases, btw) and vacations, etc., I get a little upset. Call me a bitter renter.