As a result of more Americans losing their jobs, more than 13 percent of U.S. homeowners with a mortgage are either behind on their payments or in foreclosure, the StarTribune.com reported August 20, 2009.
The data come from the Mortgage Bankers Association.
The record-high numbers in the report are being fueled by borrowers with traditional, fixed-rate mortgages, as opposed to the exotic subprime loans with adjustable rates that started the mortgage crisis. As of June, more than 4 percent of all U.S. borrowers were in foreclosure and about 9 percent had missed at least one mortgage payment."One in three new foreclosures between April and June was from a prime, fixed-rate loan, up from one in five a year earlier. Last year, subprime adjustable-rate loans caused the largest share of foreclosures."The nation's foreclosures are concentrated in California, Nevada, Arizona and Florida, which accounted for 44 percent of new foreclosures. At nearly 12 percent of all loans in foreclosure, Florida leads the U.S., followed by Nevada at 9 percent.
"President Barack Obama has pledged to fight the problem, but [his] foreclosure prevention program, known as 'Making Home Affordable,' is off to a disappointing start. As of July, only about one in 10 of eligible borrowers had signed up."
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