Subscribe12% of Mortgage Holders Behind on Payments
AP:
A record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with good credit. And the wave of foreclosures isn’t expected to crest until the end of next year, the Mortgage Bankers Association said Thursday.
The foreclosure rate on prime fixed-rate loans doubled in the last year, and now represents the largest share of new foreclosures. Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were in the foreclosure process.
At the same time, almost half of all adjustable-rate loans made to borrowers with shaky credit were past due or in foreclosure.
My comment: All of Obamas horses and all of Obamas men couldn’t put the housing bubble back together again. Quite a few of these people should not even have been given mortgages. The market is now liquidating these malinvestments. Of course the politicians are meddling and trying to subvert this process. This will inevitably lead to more pain for more people. Those green shoots are wilting in the sun.
John Polomny
The Real Deal
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