Over 13% of houses with mortgages are late on payments, or in foreclosure. That’s 1 in 8 homes and the highest percentage ever recorded by the MBA (Mortgage Bankers Association).
The frightening part is that Prime borrowers are now a large part of the crisis. I’m sure you’ve heard and even said that sub prime loans were at the start of all this. Then perhaps it was all of the people who put no money down or had interest only, or adjustable loans. Now, even those who were A paper clients with boiler plate loans are in trouble.
Whether unemployment be the main reason, or not, Prime borrowers are now 1 out of 3 foreclosures. Another factor, besides unemployment, are those who are just tired of paying for a house that will take years to recover to the point of owing what the house is worth.
