New Record! 9.64% Of All Mortgages Delinquent!

The Mortgage Bankers Association has announced that 9.64% of all mortgages are now delinquent, and this delinquency rate breaks the record set last quarter. The records are based on MBA data dating back to 1972.

The delinquency rate does NOT include loans that somewhere in the process of foreclosure. If you combine the current foreclosures with the delinquents, you get a whopping 14.41 percent.

The MBA didn’t pull any punches when assessing the situation (emphasis ours):

“The outlook is that delinquency rates and foreclosure rates will continue to worsen before they improve. First, it is unlikely the employment picture will get better until sometime next year and even then jobs will increase at a very slow pace.

Perhaps more importantly, there is no reason to expect that when the economy begins to add more jobs, those jobs will be in areas with the biggest excess housing inventory and the highest delinquency rates.

Second, the number of loans 90 days or more past due or in foreclosure is now a little over 4 million as compared with 3.9 million new and previously occupied homes currently for sale, although there is likely some overlap between the two numbers. The ultimate resolution of these seriously delinquent loans will put added pressure on the hardest hit sections of the country.”

Delinquencies Continue to Climb in Latest MBA National Delinquency Survey (Press Release) [MBA]
(Photo:Nick Bastian Tempe, AZ)

Comments

Edit Your Comment

  1. TecmoTech says:

    I say forgive 25% of all mortgage debt. People need more $$$ to spend on the other stuff that runs the economy. It’s extreme, but it would work.

    • harvey_birdman says:

      @TecmoTech: Forgive it how? The only way to do so is to continue printing money at a dangerous level. Our money is already being inflated to epic proportions, why do you want to devalue the dollar so?

    • shepd says:

      @TecmoTech:

      All that would do is inflate house prices by 25% temporarily while the “haves” move into other homes and the “have-nots” wait 5 more years for their wages to inflate to the point they can buy their first house.

      The best way to fix the situation is to put the brakes on idiotic mortgages (They still exist, Canada, for example, allows mortgage terms so long the average new home buyer will be retired before they have their house paid off) and allow people who abused their houses as magical money printing self-filling piggy banks to bankrupt themselves as the economy would have if they had invested that poorly in anything else.

    • Pihir says:

      @TecmoTech: Those people wouldn’t learn their lession, and would borrow again.

  2. xkaluv says:

    Seems that if we had applied bail out money to these people’s mortgages then that precentage would be much lower and the banks investments in these loans would have been protected. But we choose to give the money to the banks, which solved nothing.

  3. NeonNoodle says:

    So let me get this straight. people want to be safe and in a good neighborhood so they go house hunting. Realetard shows them a house that fits this description but its quoted 3-5 times what its worth. House after house its the same thing and the person starts to think they will never get a place to call home. Then Mr. Realetard says i can get you a loan…. What in gods name makes you think these people arent going to try and seize this day. How can you blame them?

  4. Mexicotraveler says:

    The economy is in a mess. People are doing anything they can to make ends meet. I recently decided to try dental tourism in Mexico. I found that by going to a Mexico dentist in Tijuana, I could save thousands of dollars. I hope the economy starts picking up soon, but at least I know where to go for dental care. I will continue to go to my Mexico dentist in Tijuana, even after things pick up. I’ve gotten spoiled by the savings!

  5. holytrainwreck says:

    @harvey_birdman: True enough. Now these overextended people are underwater on their homes. And the groups like the lenders, appraisers, and realturds enabled them. One sick system.