Consumer Law

Rise In Mortgage Delinquencies

By M. Stan Herring

MSNBC.com has posted an article about the rise in delinquent mortgages from fixed rate home loans "rather than the high-risk subprime loans with adjustable rates that triggered the mortgage crisis." There is also a record high number of homeowners who are behind on their mortgages. Both are linked to the high unemployment rate.

Driven by rising unemployment, such loans accounted for nearly 33 percent of new foreclosures last quarter. That compares with just 21 percent a year ago, when high-risk subprime loans made during the housing boom were the main reason for default.

Despite the improvement in the housing market over the summer, some are still skeptical it will last. Quite a few foreclosed homes have yet to be put up for sale, and when they are, home prices will fall even lower, especially in Florida and California.

If you are behind on your mortgage and have questions about bankruptcy, or perhaps are being harassed by debt collectors, feel free to contact us.

Full post as published by Alabama Consumer Blog on November 23, 2009 (boomark / email).