CHESSNOID

I know most economists and housing analysts were hoping  that mortgage delinquency and foreclosures were going to drop, but the reality is with unemployment over 10% it is plain ignorance to think that would be the case.  The government has programs to modify loans and bailed out the banks in hopes of cooperation.

The truth is these companies are in business for a profit and loan modifications recognize losses immediately.  That is why most modifications are temporary and most people who have loans from banks get the run around on the phone.  It is a stall tactic by banks.  The government committed a moral hazard and the banks are demonstrating why you don’t bail out for profit companies with public funds.

Delinquencies, foreclosures break record: MBA

CHICAGO (MarketWatch) — Job losses caused more Americans to fall behind on their mortgage payments in the third quarter, leading to a record 14.41% of loans in foreclosure or with at least one payment past due, the Mortgage Bankers Association’s chief economist said on Thursday. The delinquency rate for mortgage loans on one- to four-unit residential properties rose to a seasonally adjusted 9.64% of all loans outstanding at the end of the third quarter, up from 9.24% in the second quarter and 6.99% a year ago, according to the MBA’s quarterly delinquency survey. The delinquency rate includes loans at least one payment past due but not yet in foreclosure. The percentage of loans in the foreclosure process at the end of the third quarter was 4.47%, up from 4.3% in the second quarter and 2.97% a year ago. Both delinquencies and foreclosures hit their highest levels in the history of the survey.