Unemployment, high personal debt, and the general economic climate in the United States is hitting homeowners hard. The Mortgage Bankers Association (MBA), which has been tracking mortgage data since 1972, is reporting that the number of mortgage delinquencies as hit a record high of 9.64 percent in the third quarter of 2009. This figure includes all consumers that have missed at least one mortgage payment and for whom no foreclosure proceedings have begun. According to TransUnion mortgage delinquency rates have risen for 11 straight quarters in the US.
Unemployment is thought to be the strongest cause of mortgage delinquencies. Nationwide, the unemployment rate has reached over 10 percent. Little or no income, excessive debt loads, and little or no savings provide the American consumer with a lethal combination in staying out of foreclosure. Credit card debt delinquencies have also been reported as increasing over the last few months even though consumers seem to be intent on getting out of debt and staying out of debt.
Those who are fearful of these tougher financial times are right to be so. While the situation may be showing some glimmer of improvement overall with the stabilization of rampant inflation, the United States have been riding a rollercoaster of financial ups and downs since 2007. Getting out of debt, staying out of foreclosure and trying to save more money will help add some protection to what is sure to be a rocky road ahead. Experts expect a slow recovery. Now is the time to be cautious and live within one’s means.
