Delinquency Threatens the Persistence of Housing Bust
April 2012 – The U.S. National delinquency rate on Home Loans fell to just over 7% by the end of March, down from 6% from the month prior.
In a report by the Lender Processing Services, March 2012 represents the third consecutive month that the delinquency rate for the 40 million mortgages declined and set a new low not seen since August 2008.
Technically, 7.09% of overall Loans are 30 days or more past due, but not necessarily in foreclosure. The low record is said to be a result of the housing bust that the country is experiencing. Millions of Home Loans are being unpaid and foreclosed. And the trend may not subside for now. The delinquency rate threatens to contribute to more problems with the housing and foreclosure crisis.
Help for Drowning Borrowers
Although the government is making moves to partially answer to the problem, it may seem that it is to no avail. The U.S. has allotted $25 billion to help underwater borrowers (those who no longer have the capacity to pay) with their Mortgage. But what the report shows is that as the government helps the people in need, more and more seem to come out as underwater borrowers. The continuous rush of troubled home owners left the government in confusion.
What to Do?
The LPS found that the national foreclosure inventory is holding steady at 4.14%, only 0.1% higher than the previous month. However, experts assume that the problem will still take its toll on the next years to come. With this, the U.S. can try more and newer strategies, or be left buried.
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