By: Dennis Norman
Last Friday the Mortgage Bankers Association announced that almost 7% of the homeowners in America with a mortgage were behind in payments on their loan which is a record high. The number of homeowners currently somewhere in the foreclosure process is also at a record high according to the Mortgage Bankers Association quarterly delinquency survey
The number of foreclosures not only hurt the homeowners losing their homes but also hurts the value of homes by continuing to add more housing inventory to a market that already has too much inventory. This issue is addressed in a white paper just published by Dr. Mark G. Dotzour, Chief Economist, Director of Research at the Real Estate Center at Texas A&M University. Dr. Dotzours paper titled “Bold Government Can Solve America’s Housing Crisis” beings by stating “America’s housing market problem is fairly simple. Somewhere between one and two million vacant homes need tenants”. He goes on to say “we have to slow the supply of homes coming back into the market through foreclosure. To this point, government efforts to do this have not worked.”
Clearly the foreclsoure crisis is just adding fuel to an already raging fire and needs to be stopped. There is a lot of pressure on the federal government to take steps to address this crisis and hopefully something material will come of it soon.
If you are facing delinquency or foreclosure there is help. Please see my earlier post “Help fo Homeowners facing foreclosure” for helpful informaiton and useful links and resources.