14 Percent of U.S. Homeowners In Peril

(AP)  More than 14 percent of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of September, a record-high for the ninth straight quarter and a problem that could threaten the economic recovery.

The Mortgage Bankers Association's report Thursday adds to fears that the housing market and broader recovery could be thwarted by the continuing surge in home loan defaults, especially as the unemployment rate keeps rising. Lost jobs, rather than the shady loans made during the housing boom, are now the main reason homeowners fall behind on their mortgages.

After three years of plunging prices, the housing market started to rebound this summer. While optimists hope the worst is over, pessimists say there are simply too many foreclosed properties that have yet to be dumped on the market and expect further price declines.

About 4 million homeowners were either in foreclosure or at least three months behind on their mortgage payments as of September, according to the mortgage bankers group. Even if a quarter of those borrowers are able to stay in their homes, "there's a lot of potential inventory coming into the market next year," said Jay Brinkmann, chief economist with the Mortgage Bankers Association.

Those foreclosures will push home prices downward, especially in the hardest-hit California and Florida cities, places that are also coping with soaring unemployment, he said.

The record-high foreclosure numbers are being driven by borrowers with traditional fixed-rate mortgages, rather than the shady subprime loans with adjustable rates that kicked off the mortgage crisis.

Fixed-rate loans made to so-called prime borrowers with good credit histories caused nearly 33 percent of new foreclosures in the July-September quarter, compared with 21 percent a year ago.

Subprime loans with adjustable rates have fallen to 16 percent of new foreclosures from 35 percent a year earlier.

Loans backed by the Federal Housing Administration also show increasing signs of trouble. More than 18 percent of FHA borrowers are at least one payment behind or in foreclosure.

Among states, the worst of the trouble is still concentrated in California, Nevada, Arizona and Florida, which accounted for 44 percent of new foreclosures in the country. Nearly 13 percent of all loans in Florida were in foreclosure, the highest in the U.S., followed by Nevada at more than 9 percent.

[special-agent-utah]

Just for you idiot americans to understand this line that I am posting from the PBS" Documentry the "Warning" an interview of the former "CFTC" chair woman "brooksely born"


So we're the losers. Who were the winners?

I think the profits made by the over-the-counter derivatives dealers, by our largest banks and investment banks, were the upside of this. And that was shortsighted. It was short-term benefit for a few major institutions at the expense of all the people who have lost their jobs, who have lost their retirement savings, who have lost their homes.


All the regulars here should remember, that I was posting these facts 2 years ago and no one was listening until it became apparent when everything collapsed in the financial markets...

Still I say to you in order for you to stop this thuggery of the federal reserve in future, you must help Mr Ron paul to succeed in his congress bill to Audit the federal reserves ...The crooks like Barney frank and chris dodd are sitting on it,and they are part of this problem ....They are real life gangsters with a license...Believe it...Its all true ...

[special-agent-utah]

Thanks to your corrupt federal reserve and its evil extentions of Goldman sachs,morgan stanley,and Jp morgan for putting you dumb american home owners in this predicament...

[stevador39]

HOW IS IT THAT THE U.S. CANNOT PROVIDE SOCIAL PROGRAMS FOR ITS OWN PEOPLE YET BRING 'REFUGEES' FROM AROUND THE WORLD AND PROVIDE PRIVILEGES FOR THEM. THE U.S. GOVERNMENT IS ROTTEN. IMPEACH THE ABOMINATION IN THE WHITE HOUSE.

[John_Merritt]

I remember in the Fall of 2007 when one of the financial networks were deriding the 'housing bubble' and their experts predicted that only about 2% of the homes in America were going to be affected. Well two years later we are now coming to grips with what we feared the most, it was not just the sub-primes that would be affected.

Now we are seeing Mom and Pop's who have been in their homes for many years losing what they worked so hard to keep as part of their American dream. 14% of homeowners are now affected. Today I was reading an article and the 'real' unemployment rate is now 17% of employable Americans are without a job.

[bubbadubba]

"14 Percent of U.S. Homeowners In Peril"
In Peril, they are in Peril I tell you!!!!!!!
Who is writing these headlines, the world class drama queen?
Or maybe just an uneducated idiot who doesn't speak the English language.
per·il (prl)
n.
1.
a. Imminent danger.
b. Exposure to the risk of harm or loss of life.
2. Something that endangers or involves risk to one's person.
tr.v. per·iled also per·illed, per·il·ing also per·il·ling, per·ils also per·ils
To expose to danger or the chance of injury; imperil.

[prevail23]

So far, we have blamed Mr. Clinton, WTO, Bush, Obama, and Congress. We are a covetous nation. Covetous Wall Street and covetous banking/monetary systems. Overpriced goods and services. The game is clear. Make these items overseas, sell them at a price beyond our paltry American salaries. Force many of us to use credit cards, lines of credit, personal loans, home equity loans, charge cards, and other forms of secondary payment to purchase things that we do not need. Car payments, mortgages or ARM, (buying more house than we need or "mcmasions", home equity payments or secondary mortgages, insurance, boat payments, and God only knows what other payments we are making. Because we are out of control, we forget about making any payments. And, oh, if I still have a job. The world has caught up to how America plays its silly "backassward" game. Do not misunderstand the signal of an American President bowing to Japan, China and every other nation because that is a clear acknowledgment that they own us. What's next? More unrecoverable economic disasters. The bill is due (the federal deficit). Until we stop allowing ourselves to be hoodwinked by our own nation, and until we discipline ourselves to tell American businesses that we are not buying any more high priced items, we will never climb out of this cesspool. Drive down your prices or you will go out of business. It's a no brainer. There was a day when savings was the thing. Now, we are a nation of national and personal debt with no hope in sight unless we take action and be responsible ourselves, and refuse to believe what the government wants you to believe. Oh, by the way, more taxes too. Get used to the taste of soup and crackers. Um, um, good.

[Treadlightly2]

Wow, I was going to say something about accountability but you wrapped it up very well.
I would still like to see some of the fraudulent loanmakers who caused this landslide in the first place being rounded up and prosecuted.
When is that going to happen? IS it going to happen? Why not?

[dagrandma]

I think in most cases this is what happens when you have to have a separate room for every activity -- you know, a home movie theater, a family room, a bedroom for each child, and three or four bathrooms. Guess living with less than 1500 square feet is the reason I have a mortgage free home.

[Lawyers-Guns-n-Money-01]

by chevyhotrod November 19, 2009 4:18 PM EST
steve,
"thanks to the Bush administration"

Maybe you should go back to 2005 and re-visit the congressional record. I'll do it for you, the link below is video from C-SPAN from 2004-05 talking about what the problems were, who saw it coming and who didn't. It will also show you who tried to stop it and who didn't. It will prove to you that the Bush Administration as not who cause the housing crash, it will show you, WITH VIDEO, who where the person's responsible for the home mortgage crisis.

http://www.youtube.com/watch?v=_MGT_cSi7Rs
===================================================================

If you have only a facile grasp of the situation, it's easy to run with the pack of barking dogs.

Subprime lending was at its height during the years of 2004-2006 -- when the Republicans had control of Congress.

At the height of the subprime lending spree, 84% of those mortages were issued by private lending institutions.

During that same period, 83% of those subprime loans were made to low- or moderate income borrowers.

Of the top 25 subprime lenders, only one of them was subject to housing laws that Republicans point to as a facilitator of the housing crisis.

During the 2004-2006 years when subprime was running amok, Fannnie and Freddie reduced their holdings of subprime loans by half (from 48% to 24%).

During this same period, Bush, his administration and the Republican Congress were crowing about the record level of home ownership realized during his trm in office.

[special-agent-utah]

Utter Nonsense lawyer with no money as usual...
You are an idiot of the worse kind delusional and drunk, who has no clue about this financial mess that America finds itself in,And what caused it to happen, Its quite shocking for a canadian to see an american idiot calling the other american an idiot to make his idiotic point...You need to educate yourself rather than posting crapola day in and day out,like a fruit cake...Huh...

[Lawyers-Guns-n-Money-01]

Oh Shazzy, you are the unmitigated champion of idiots.

[r9119111]

Thanks to deregulation and lack of over-sight.

[SevenAngryFreds]

Millions of middle class folks suffered discomfort from 1930 to 1940. By the end of that ten year period, plenty of them had given up on a recovery ever happening. Now we have similar times. We don't know how much longer we will have tough times. They may never end. For those of you who still own a home and can eat something better and than ham and beans, try to be grateful.

[Treadlightly2]

You have ham? I got rice. After working for 20 years as a Master Carpenter. Where are the riots?