Tuesday, December 09, 2008

Homeowners in Mortgage Trouble

A recent article on MSNBC.com stated that 1 in 10 homeowners are at least a month behind on their payments or in foreclosure due to risky home loans and the crumbling economy. Home foreclosures are concentrated in Florida which has the highest foreclosure rate, Nevada and California.

The mortgage crisis started about 2 years ago when adjustable rate loans reset to higher interest rates. The lastest cause of delinquencies is the nation's unemployment rate. Job loss has placed many homeowners at risk for foreclosure. With no end in sight, I don't think we have seen the bottom of the housing market yet.  The economy will get worse before it gets better.

Next Article: Refinancing Benefits