Foreclosures Starting to Hit People with Good Credit
The foreclosure rate is not likely to go down anytime soon. In fact, it appears that not only will it rise slightly, it is starting to hit individuals with good credit scores. Up to now, most of the foreclosures were in the subprime range. However, not any longer. The crisis is slated to last well into 2010.
With no end or relief in sight for the unemployment rate, there is no alternative but for the foreclosure rate to begin creeping into individuals with good credit.
“The latest evidence was a report Thursday that a rising proportion of fixed-rate home loans made to people with good credit are sinking into foreclosure. . . . The report from the Mortgage Bankers Association also found that 14 percent of homeowners with a mortgage were either behind on payments or in foreclosure at the end of September. It was a record-high figure for the ninth consecutive quarter.
The data suggest the housing market and the broader recovery will remain under pressure from the surge in home-loan defaults, especially as unemployment keeps rising.
. . . But analysts say there are too many foreclosed homes that have yet to be dumped on the market and expect further price declines.”
Read the full article in the Courier-Journal. If you are looking for good investments, you need to get to know your local bank’s REO department.
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