Friday, September 18, 2009
Just when you thought it was safe to go back in the water
So how big is the next wave in the housing mortgage disaster? Currently, one out of eight mortgages is in foreclosure or paying late, and with unemployment averaging over 9% for 2009 and 2010 and peaking in 2011, it's likely one in five mortgages could ultimately default. Moreover, we have seen that less than 7% of those mortgages that are late will get cured and stay out of foreclosure. Over the last six months, notices of home foreclosures have been running about 350,000 a month, which is over four million a year. A lot of homes are headed to the auction block with their mortgages headed for the shredder.