Home Foreclosures Back on the Rise

The recession may be starting to abate, but the housing crisis shows no signs of slowing down as home foreclosures reached another several-year high. According to a report by the Mortgage Bankers Association, more than 12% of American borrowers are now facing foreclosure.

Of the 45 million home loans in the country, 5.4 million were either delinquent or in the early stages of foreclosure by the end of the first quarter. Housing authorities put much of the blame on unemployment, with nearly 6 million jobs lost in the last 18 months and a 10% unemployment rise foreseen in the next few months.

Most of the foreclosure suspensions imposed by mortgage companies have also expired, leaving even more homeowners in trouble. Economist Patrick Newport calls it a “vicious cycle,” saying the numbers will likely get worse and that the problem is bound to stick for a long time.

Economists at the Boston Federal Reserve point to the implementation of stabilization programs as part of the problem. In a recently released paper, the Boston Fed suggested that direct aid might have been more effective than the loan modification program originally planned.

Articles

• 
• Home Foreclosures Back on the Rise
• House Approves Bankruptcy Loan Modification Bill
• Lenders Becoming More Open to Short Sales
• “Safe Harbor” Bill May Lead to More Lender Abuse
• Freddie Mac Revises Relief Refinance Mortgage Program
• Loan Modifications Go Up, But More Borrowers Fall Behind
• FTC Takes Legal Action Against Abusive Loan Mod Companies
• Your Loan Documents May be the Secret Key to Obtaining a Loan Modification
• Foreclosure Vs Short Sale - What's the Difference?
• Obama's Loan Modification Plan: 7 Things You Need to Know The White House releases fresh
•