Foreclosures Hit Record High; Home Equity Record Low
By: Phyllis Paves
When will it end?
Look around your neighborhood.
Look around your block.
Look in your mailbox.
Last month alone, one desperate homeowner out of every 557 homeowners across the nation filed for foreclosure, and more than 220,000 troubled homeowners received notices related to overdue mortgage payments.
The statistics are alarming.
The mortgage crisis is a nationwide problem, though some areas are harder hit than others. California and Florida alone accounted for 30 percent of all the mortgages starting the foreclosure process in the latest report from the Mortgage Bankers Association.
The problem was the worst for borrowers with subprime adjustable-rate mortgages who also have credit problems. They faced record-breaking highs for both late payments and foreclosures, with 5.29 percent entering the foreclosure process.
And RealtyTrac Inc. reports that lenders sent out at least one overdue notice to 223,651 homes in the U.S., up from 139,922 just a year earlier. February was the 26th month in a row with an increase in foreclosure-related filings.
2007 Fourth Quarter Mortgage Delinquencies at Highest Rate since 1985!
The delinquency rate for all mortgages in the fourth quarter of 2007 was the highest since 1985 at 5.82 percent, up from 5.59 percent in the third quarter last year. That's how many homeowners were facing mortgage payments that were more than 30 days past due.
In addition, the nation's overall home equity is slipping. Homeowners' debt is now greater than their home equity for the first time since 1945, when the Federal Reserve first started tracking that data. In the fourth quarter of 2007, the percentage of equity reached 47.9 percent, down from the second quarter's 49.6 percent.
Nationwide mortgage lenders repossessed 46,508 homes in February, up from 22,114 last year.
Addressing These Statistics and the Larger Issues at Play
While many homeowners continue to struggle, the public spotlight is on efforts by the government, banks and other groups to find ways to help.
And those nationwide statistics may be better where you live. That's why it's a good idea to keep up-to-date on what's happening right in your own city and state, including how home values are impacted. Foreclosure-Fighter and other news outlets offer articles on items like the local impact of the mortgage crisis to help you out.
Options for Homeowners
As we have previously reported, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 tightened qualifications for filing Chapter 7 bankruptcy.
Those stricter qualifications means more homeowners needed to file Chapter 13 bankruptcy, with payment plans for secured debts like a mortgage.
So if you're looking for options to avoid losing your homes or going even further into debt, you may have more options than you think. Whether it's filing Chapter 13 bankruptcy or refinancing your mortgage, perhaps we can help you make the best choice for you and your family. You may be able to prevent foreclosure with help from Foreclosure-Fighter! Call us at 1 (877) 219-3153.