Yesterday I reported to you all that 20% of all US mortgages were under water, meaning that the outstanding balance on the loan was greater the homes value it was borrowed against.
Well today even more startling numbers came out. Over 11% of all mortgages in the United States is either involved in a foreclosure, or is at least 1 month late in payment. Those are staggering numbers. That means that 1 in every 10 people who have a mortgage in the country are unable to meet their monthly financial obligation.
President Obama, yesterday, announce details of his mortgage plan to save up to 4 million families from foreclosing on their homes. He better get the ball moving on this or the vicious cycle will never end. The more foreclosures there are, the greater the supply of housing units on the market, thus lowering the price of the homes when they sell. This in turn makes it even more impossible for the homeowners to refinance or sell their hoem to pay off their mortgage. The cycle will continue until the government gets a plan right.
The experts do not expect to see too much inprovement until as late as the end of 2010 (18 months from now). Feel free to give your opinion at the Real Estate Forum on MMG.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment