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12% of homeowners with a mortgage are late or in foreclosure

A record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with good credit. And the wave of foreclosures isn't expected to crest until the end of next year, the Mortgage Bankers Association said Thursday

http://news.yahoo.com/s/ap/20090528/ap_on_bi_ge/us_foreclosures

Lots of foreclosures and rising interest rates could make for a very toxic combination.

Answer Question
 
smalltowngal

Asked by smalltowngal at 4:12 PM on May. 28, 2009 in Politics & Current Events

Level 1 (-9 Credits)
Answers (26)
  • So whats new???
    tyme4me2day

    Answer by tyme4me2day at 4:18 PM on May. 28, 2009

  • But MOST of those foreclosures are due to SUBPRIME mortgages...people who bought TOO MUCH house, and didn't have the job, savings, to make the payments when their introductory ARM rates kicked in, or a setback that most people who planned accordingly would have been able to bounce back from--such as injury or illness, or job loss!

    It's unfortunate, but there are MANY people who did do the right thing, yet we don't get any 'credit" for being responsible.
    LoriKeet

    Answer by LoriKeet at 4:34 PM on May. 28, 2009

  • i'm so glad that we bought what we could afford and were able to pay it off a year and a half after we signed the papers.
    Ladybugkisses76

    Answer by Ladybugkisses76 at 4:37 PM on May. 28, 2009

  • what did you buy...a trailer?
    Anonymous

    Answer by Anonymous at 4:41 PM on May. 28, 2009

  • nope an actual house - however it wasn't more than we could afford. We saved for years prior to purchasing and when we did we bought something comfortable for us to live in and something that we could pay off within a few years. We even were surprised when we could pay our mortgage of that quickly. However, we felt like paying off our mortgage was smarter than blowing the money on other things.

    Ladybugkisses76

    Answer by Ladybugkisses76 at 4:46 PM on May. 28, 2009

  • I agree LoriKeet. It seems like the only people that get kudos these days are crooks!

    If you don't have the money for it you don't "deserve" it. We all must live within our means and that includes the government!
    yourspecialkid

    Answer by yourspecialkid at 4:53 PM on May. 28, 2009

  • But MOST of those foreclosures are due to SUBPRIME mortgages...

    Actually, what's new is that you are now seeing more fixed mortgages than subprime mortgages go in default.
    smalltowngal

    Answer by smalltowngal at 4:54 PM on May. 28, 2009

  • That is great ladybug! The house crisis has alot do with people trying to live a wine life on a beer budget! So many of the houses that are empty were bought by those that simply could not afford them. But good for you! :~)
    ronjwake

    Answer by ronjwake at 4:56 PM on May. 28, 2009

  • This is not news. It is the same 12% that were behind in Jan. Foreclosure take a long time.
    Anonymous

    Answer by Anonymous at 5:02 PM on May. 28, 2009

  • This is why we got a mortgage we could afford. We worked with our broker before looking at houses to see what we could get money wise and what we SHOULD get money wise.

    Even though it's a "tiny" mortgage compared to most, it still strains our budget, but it's the most important bill for us, the first one we make sure we pay every month.
    WillDoDa

    Answer by WillDoDa at 5:05 PM on May. 28, 2009

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