Sub-Prime loans which started the real estate delinquency problems, are still leading the delinquencies at almost a 20% delinquency rate and also lead foreclosures are no longer the only loans on which the delinquency and foreclosure numbers are rapidly rising. Mortgage delinquencies and foreclosures are expected to continue to soar as the jobs-lost numbers continue to worsen.
While the delinquency rates hit almost 7% (those include all borrowers who are more than 30 days past due on their mortgage payments), almost 3% of all mortgage holders are in some phase of foreclosure proceedings (2.97%).
According to the MBA, the actual number of homes in foreclosure could be even higher as the number of loans in the 90 or more days delinquent but not yet in foreclosure status has grown considerably but these loans may not have been placed into foreclosure yet due to various moratoriums, greater lender forbearance, etc.
When you add the job losses reported today of 533,000, more than in 3 decades, will truly help the future mortgage foreclosures soar yet further. Lenders and servicers continue to work with borrowers to try to craft repayment schedules and modify loan terms.
What no one has a way to know yet, is whether these actions will only delay the inevitable, or whether these actions will allow borrowers the opportunity to actually catch up and get themselves out of trouble once and for all.
Economic weakening in Florida and California has played a large part in the soaring foreclosure numbers. California and Florida have been leading in foreclosure numbers primarily due to massive housing starts, speculation and weak underwriting. However, now that you can add job losses of over 156,000 in Florida and 101,000 in California, those numbers are rising even more.
With the weakening economy and with the jobs lost, the effect on seniors has been devastating. Seniors have seen their life savings and their retirement funds disappear lately with the $2 Trillion Dollars that the State Department has estimated has been lost in the capital markets.
Now with the jobs market tightening as much as it has and unemployment rising to 6.7%, many seniors who find they can no longer support themselves without re-entering the job market, are finding it increasingly difficult to find the employment they require just to get by.
Many now find themselves among this soaring delinquent and foreclosure group. These are individuals who may never have had a blemish on their credit in their lives but are caught up in an economy in which they just cannot contend.
However, for those seniors who have chosen to obtain the HUD Home Equity Conversion Mortgage (HECM or Heck-Um), they do not have to be concerned with the soaring foreclosure rates and whether or not they can now make their mortgage payments.
With the HECM there are no monthly payments. Borrowers live in their homes for life with no monthly payments, and therefore do not have to worry about the possibility to being caught up in times like these with the soaring foreclosure rates.
This is one Government program which has really helped hundreds of thousands of seniors and given them a safe haven in an uncertain economic world.
Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762
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Article Source: www.articlesnatch.com
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