In more obvious news today, the rate of mortgage delinquencies continues to rise. According to the Associate Press, 10% of homeowners with mortgages have missed at leased one payment between January to March of 2010. This number is up from 9.1% from a year ago and is not a good sign.
This looming and lingering foreclosure market is driving people crazy. It is like a bad cold that American cannot seem to shake off. But if they don’t do something soon, then this might turn from a cold to a noose as people start to pack up theirexcretionary spending and run for the hills. The markets and the economy could be in for a bad down tum.
On the bright side of the this new information is the fact the number of people that have missed at minimum 3 payments on their mortgage decreased. This number went from 3.8% percent to 3.5%. But this is the best news that you can exepct if you are sober.
The rising first time delinquencies have people worried, obviously, because this is the next wave of people that will soon enter into that category of missing three mortgage payments and officially entering default. Default is the first step of the foreclosure process. (You can learn more on the foreclosures byvisiting our section on how to buy foreclosure property.)
Foreclosure Numbers
About 4.3 million people are in some stage of the foreclosure process. This group has missed three mortgage payments or more. And unless some sort of load modification program can work for them, then it is over and their homes will beforeclosured on. Adding to the number of unearning assets on a banks balance sheet and another blight in the community.
And with the news yesterday that the federal government’s tax break for buying a home of $9,000 has now come to an end, doesn’t seem like demand is going to catch up with the housing supply any time soon. There may be great deals on the market much longer than we all anticipated.
Therefore, if you are planning on personal finance investing, beginning investing or especially the foreclosure market, then you still have time. The inventory only seems to be piling up.
Source: Yahoo Finance
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