From: Home Addition
By Mark J. DonovanThe 4th quarter of 2009 saw a precipitous
increase in mortgage delinquencies, rising to 14%. Much of the rise
was associated with credit-worthy borrowers. Current and performing
mortgages fell to 86.4%, down 0.9% from the previous quarter. This
represents the 7th consecutive quarter of decline.The news is not
surprising with so many homes’ underwater,
worth less than their outstanding bank mortgage. People are
choosing to spend their limited funds on staple items and forgo the
house payment as they view the house payment as wasted money. This
way of thinking only exacerbates the problem as banks then begin
the foreclose process.Without a significant improvement in the
unemployment rate, which stands today at 9.7% officially and around
17% unofficially, the trend in del...
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