One in 8 U.S. Households Late Paying or in Forclosure

One in 8 U.S. Households Late Paying or in Forclosure

www.reuters.com

NEW YORK - About one in eight U.S. households, a record share, ended 2008 behind on their mortgage payments or in the foreclosure process as job losses intensified a housing crisis spawned by lax lending practices, the Mortgage Bankers Association said on Thursday.

(visit the link for the full news article)

This article struck home with me. Due to a labor dispute at Boeing Aircraft , who is our main customer for the 737 fuselage, I was forced to go on a three day workweek. This labor dispute lasted for months, needless to say it took its toll financially on me and my family. Trying to work a 'hardship' deal with my mortgage company took months , due to the inundating number of forclosures .

www.reuters.com
(visit the link for the full news article)

[edit on 5-3-2009 by L.HAMILTON]

That is not all, This is from Bloombergs news,

More than 8.3 million U.S. mortgage holders owed more on their loans in the fourth quarter than their property was worth as the recession cut home values by $2.4 trillion last year, First American CoreLogic said.

An additional 2.2 million borrowers will be underwater if home prices decline another 5 percent, First American, a Santa Ana, California-based seller of mortgage and economic data, said in a report today. Households with negative equity or near it account for a quarter of all mortgage holders.

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www.bloomberg.com...

Well perhaps Obama plan will allow people to get back in their feet as they get to qualify for federal programs.

The new U.S. government plan, disclosed yesterday, will offer relief for those who are about to lose their homes, in some cases reducing mortgage payments to about 30% of gross income. It won't, however, rescue those who have already been foreclosed on or those whose property values have fallen due to a falling real estate market.

But it should offer substantial help to millions who are now struggling just to keep afloat.