Right now, 11% of homeowners are experiencing mortgage trouble. This underscores an increasing problem. We have moved out of the realm of "losers" who made "stupid" decisions about what kind of homes they bought with questionable loans. Now, with the job losses and the economic issues, plenty of people who made solid decisions are running into trouble.
However, ARM loans — both subprime and prime — remain the biggest problems. CNN Money reports on the numbers of delinquencies in these categories:
pay-option ARMs, continue to dominate the delinquency numbers," Jay
Brinkman, chief economist for the MBA, said in a prepared statement.
"Nationwide, 48% of subprime ARMs were at least one payment past due,
and in Florida over 60% of subprime ARMs were at least one payment past
due."
Unfortunately, unless loan modification takes hold, this trend is likely to continue. After all, there are still some ARMs that have yet to reset, and the economic stimulus bill passed by Congress, meant to aid in job creation, still hasn't taken effect.
image source: woodleywonderworks via Flickr
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