New Wave of Home Foreclosures

[flip_it_fast]

Ugh-Oh. Round number two looming just ahead?

I just read that the number of peole falling behind on their mortgages for the first time is on the rise. Not decreasing as the economy is slowly recovering but getting worse than it was.

Will that mean a fresh new wave of home foreclosures sending us all spiraling again? Sounds like it.

I don't mean to sound like a stick in the mud but this sure doesn't sound like a good thing!

Some 3.51% of borrowers were 30 days late in their loan payments in the second quarter, up from 3.31% at the end of last year, according to new data from the Mortgage Bankers Association. The shift is a stark reversal from the steady decline in short-term delinquencies during 2009.
The blame lies in the sputtering labor market, experts say. More people are losing their jobs, as evidenced in the steady rise in initial unemployment claims, and this is prompting them to default on their mortgages.

It's a big never ending cycle. The job market effects the housing market and at the same time the housing market really does effect the job market. The economy is a big strange thing these days.

[homealone]

I agree this isn't good new to hear at all. It is getting harder and harder to make ends meet for to many people, then to top it all off people aren't able to make their mortgage payments and they end up losing their homes, making life so much harder.

The government really needs to do something to help people out. This is getting out of hand. Heaven knows this government sure can help out everyone else in the world, so I don't see why they can't help those who really need and deserve it.

[House on the Prairie]

I've actually had a friend who was advised to let her home fall into foreclosure so that she could get the help she needed. After having the house on the market for over a year, she and her husband decided to move out and rent from a family member to decrease his two-hour commute and improve the standard of life for their young family. Unable to find renters, sales prospects, or even a realtor who would touch it (the house was built in the 80's and is right next to a brand new subdivision that was going through a developer bankruptcy sale). At first I whole-heartedly disagreed with her decision. After all, it didn't seem fair to her neighbors or to others who didn't have the luxury of another cheaper house to move to. Now I understand her plight. To have an upside down house in a downhill market, you couldn't even sell it back to the bank for half its value. It's a good thing she's planned to stay put for the next few years while her credit takes a nose dive and recovers.