Record foreclosures are adding more dead weight to the non performing loans on the books with mortgage lenders and government agencies around the country and around the globe. 1 in every 7 mortgages are in foreclosure
33% of Foreclosures are those with perfect credit scores!
Steve Ladurantaye with Globe and Mail update
Mounting unemployment is pushing foreclosure rates higher in the United States, and driving even Americans with good credit from their homes in greater numbers.
What began as a crisis among home owners with bad credit and subprime mortgages has spread to the those with traditionally safer fixed-rate mortgages. A strong housing sector is seen as key to any economic recovery
, but rising unemployment and a stagnant economy threaten to erase recent signs of stabilization.
Worsening the problem, millions of unconventional mortgages issued to Americans who didn’t even have to prove they had a job are due to reset in the next two years, further harming the sector’s prospects.
“The stability we’ve started to see in U.S. housing was likely a false calm before a bigger storm,” said Derek Holt, vice-president of economics for Scotia Capital. “There are millions of homeowners under threat of losing their homes in the next two years.”
The Mortgage Bankers Association said Thursday a record one in seven U.S. mortgages, or four million homeowners, were in foreclosure or at least one payment late in the third quarter. The housing market accounts for about 20 per cent of the U.S. economy, and a stabilization in plummeting property values is seen as a key pillar of an economic recovery.
Americans with solid credit ratings comprised 33 per cent of the quarter’s foreclosures.
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