Q3 2009 Mortgage Delinquency Data
As more and more economic data is released, more and more, we are beginning to realize how severe our current foreclosure situation truly seems to be. The news media seems to want us to believe that the worst is behind is in the foreclosure crisis, but the reality paints a picture which is quite different.
The Mortgage Bankers Association (MBAA) recently released the Q3 2009 statistics about mortgage delinquency which revealed some truly alarming statistics which blew a lot of minds.
14.32% of all mortgages in the nation are in default (at least 30 days behind in payment) and of those, 4.38% are actually in foreclosure process where they have been served a Notice of Default. These numbers are the highest they have ever been since this organization kept track of these types of numbers. I REPEAT: 14.32% OF ALL MORTGAGES IN THE NATION IS IN DEFAULT!
And we all know what is causing these historic default activities: unemployment. Unemployment was at 10.2% while underemployment was at 17.5% for October. Unemployment is up while housing values are dropping, creating the perfect storm for foreclosures. Look at all of the categories listed above, in every single loan category MBAA tracked, 10% or more of said loans are in default. These are astronomical statistics, they had never seen numbers like that before.
The numbers for states like California will be even worse that these because we were at 12.3%. We must address the unemployment issue if we are to get out from underneath this 800 lb. gorilla sitting on our shoulders.
