Cash is King – Upside Down Mortgage Solutions

March 23, 2009

Upside Down Mortgage: The Reason Why and Opinion from the Pros!

Check out our new BLOG on

Coping with an Upside Down Mortgage:

A Legal Perspective

Mortgage Deliquencies up for the 8th Straigh Quarter

http://news.yahoo.com/s/ap/20090303/ap_on_bi_ge/transunion_mortgage_delinquencies_1

CHICAGO – The number of people who were late making their mortgage payments shot up 53 percent in the fourth quarter of 2008 from the same period in 2007, according to data provided by TransUnion LLC.

The credit reporting agency said its database shows delinquencies — or the percentage of mortgage holders at least 60 days behind on payments, considered a precursor to foreclosure — jumped to 4.58 percent nationally, from 2.99 percent for the 2007 fourth quarter.

That was 16 percent above the 3.96 percent rate seen in the third quarter, TransUnion said, and marked the eighth straight quarter that deliquency rates rose.

“It’s about what we were expecting,” said Keith Carson, senior consultant in TransUnion’s financial services group. But while not unexpected, the huge jump from last year was still “alarming,” Carson said.

TransUnion, best known for its consumer credit rating data, projects delinquency rates could reach as high as 8 percent by the end of the year. The company isn’t predicting that the climate will improve until the middle of 2010.

The states that have shown the highest delinquency and foreclosure rates remain the same. Florida is on top, with a 9.52 percent rate for the fourth quarter, while Nevada is second with 9.01 percent. Arizona came in at 6.93 percent and California right behind at 6.88 percent. Carson said there is a glut of homes in those states, which is combining with increasing economic woes and declining home values to keep the rates high.

North Dakota, at 1.21 percent, remains the state with the lowest delinquency rate.

The figures are culled from TransUnion Trend Data, which consists of 27 million consumer records randomly sampled each month from the credit reporting agency’s national consumer credit database.

While the government has launched efforts to stem foreclosures, those moves are not yet reflected in data, Carson said. Banks are also trying to work with consumers to reduce problematic mortgages, but falling home prices are feeding the problem, he said. “We do know from everything we’ve found out in the last year is that the primary driver on mortgage defaults is negative equity,” he said. When homeowners owe more on their mortgages than the houses are worth, data show a higher likelihood that consumers will simply walk away, he said.

California is the state with the highest average mortgage debt per borrower, at $356,421. West Virginia has the lowest, at $96,243.

Lenders are trying to address some negative equity issues with refinancing, but Carson said data shows the rate of redefault on modified mortgages “has been very high, primarily because of negative equity.”

Find Secrets to Refinancing your Upside Down Mortgage ……

“This article has been out for several months now and this are constantly changing. Find More information at my new home page Refinance an Upside Down Mortgage”

Advertisements

2 Comments »

  1. I think that I may be in trouble I own a business and the loan is coming due. I have heard that banks are giving business owners a very hard time refinancing and consolidating debt. The business has great potential, but has lost money the last two years. I have laid off most of the staff and it should turn a profit this year. Should I try to refinance the note or try to get a debt consolidation loan? Any suggestions would be greatly appreciated.

    Comment by mike blake — April 12, 2009 @ 12:47 am | Reply

  2. A debt consolidation loan has many advantages. It can reduce high interest rates and simplify monthly payments by reducing them to one. However, individuals must do their part by learning to spend wisely and responsibly. Debt consolidation loans have some drawbacks as well. They can be seen by some lenders as a warning sign that a prospective borrower is in trouble. Another drawback is that some debt consolidation lenders will ask that you put up collateral before they grant the loan.

    Comment by Debt Consolidation Bad — June 24, 2009 @ 12:48 am | Reply


RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: