Yow! One In Seven Homeowners With Mortgages Are In Trouble

The Business Insider ^ | 11/19/09 | John Carney

[FromLori]

The Mortgage Bankers Association released a grim report today revealing that nearly one in seven households with mortgages is behind on payments or already in foreclosure.

Last year, only one in 10 were behind. Two years ago, the number was just 7.3%.

We’re now in what is clearly the second leg downward of the mortgage mess. While the early days of the mortgage crisis were driven largely by people saddled with complex mortgages they couldn’t afford to pay, now even homeowners with relatively sane mortgages are running into trouble as unemployment soars into the double digits.

In a rising housing market, joblessness doesn’t necessarily trigger defaults. In those situations, jobless homeowners can sell their homes and pay off the mortgage. But with the home market still ailing and prices still falling in many areas, jobless homeowners are forced into short-sales and defaults.

[griswold3]

Gee, I feel left out. I paid off my mortgage in 2006.

[mo]

This is not a casual observation...but the only way to flush the sepsis from world finance is to remove the cause of derivative instability from the world markets. The Feds need to bail out all securitizeded mortgages.

[TChris]

That's consistent with the true unemployment numbers I've seen.

[FromLori]

ping and Related

http://www.businessinsider.com/henry-blodget-the-most-important-housing-chart-2009-11

[hennie pennie]

I'm unsure if this article would interest you, but I'd sure be interested in your reaction to it.

Thanks. :)

[momincombatboots]

So do I, my mortgage is only 1/8th of my take home pay. And.. it’s almost paid off. It’s no McMansion, but I will keep it!

[Nervous Tick]

>> The Feds need to bail out all securitizeded mortgages.

Question: do YOU have a “securitizeded mortage”?

I’ll bet you do. Just a guess.

[mo]

That’s called an “ad hominem” argument..usually frowned upon at FR.

You can do better.

[NVDave]

Attempting to backstop a minority of securitized mortgages is why the deficit is already exploding, the Fed’s balance sheet is a joke around the world and China is giving us lectures on fiscal responsibility.

To bail out “all” securitized mortgages would sink us.

[Nervous Tick]

>> That’s called an “ad hominem” argument..

No, actually it’s called a “question”. You can recognize “questions” by that squiggly thing called a “question mark” at the end of the sentence.

I notice you didn’t answer the question. Do you have a “securitizeded” mortgage? Or not?

If it’s any help, regardless of how you answer, I won’t have anything more to say. I just want to know.

[PugetSoundSoldier]

Gee, I feel left out. I paid off my mortgage in 2006.

Hah - SUCKER! See, should have waited and gotten second and third mortgages on it, at 125% of the house value! That way the Government can pay for your house when they bail everyone else out.

See, you could have taken in EVEN MORE MONEY, and had someone else pay your bills! Free money, no responsibility! You're missing out...

Now where's Obama with my free car. And my pizza delivered tonight. And my free health care. And my free college education. And my...

[Gritty]

Look at the bright side.

Once the feds foreclose and own the houses, they won't have to pay vouchers for Section 8 housing. They can simply move the deadbeats right in after the "owners" move out! There should be plenty of free housing for those who need it.

In any event, the previous "owners" probably stole these houses from the rightful owners (the poor and disenfranchised) in the first place. Now they're just getting their payback for over 500 years of slavery! Let 'em go back and live in their parent's basement...

[FromLori]

A lot of them probably voted for him I figure anyway.

[Petronski]

The Feds need to bail out all securitized mortgages.

How?

With what?

[CommieCutter]

That was my thought.

[Neidermeyer]

Gee, I feel left out. I paid off my mortgage in 2006.

***************************************************

You'll still get to ride along ... just think of selling prices when we have 15% U3 unemployment, the avg. workweek falls to 31 hrs. from the current 33 and banks are finally forced to sell the REO properties they have been keeping off the market. Maybe you should sell now ,, rent and buy back in 10 years.

[org.whodat]

ROFLOL!!!!! remove the cause of derivative instability from the world markets

How many tanker loads of green ink and paper do you think that would take.

[org.whodat]

The global financial crisis has introduced ordinary people to the extraordinary and arcane world of “derivative product” — a gigantic system of commercial bets in financial markets where the total outstanding amount of derivatives adds up to a mere $600 trillion (some 10 times the value of global production).

http://garybryan.blogspot.com/2009/10/be-afraid-year-after-aig-derivatives.html

[Proud_USA_Republican]