Missouri a bit ahead of national averages for lagging loan payments
The Mortgage Bankers Association Friday shared the latest data on how many of us are behind on our mortgages, and the news was, well, grim.
Just under 7 percent of mortgages on one-to-four family homes nationwide were behind on payments in the third quarter, according to the MBA - 6.99 percent. That’s up from 6.41 percent in the second quarter and from 5.59 percent in the same period last year. The number of loans more than 90 days overdue, 2.2 percent, is the highest in the history of the survey.
The good news? Foreclosure starts were flat as banks began working more aggressively with borrowers to avoid taking over houses.
That 6.99 percent number takes into account seasonal variations. When they’re removed, it rises to 7.29 percent, and that is how state figures are calculated, without the seasonal adjustment. For comparison’s sake, Missouri’s rate was 7.32 percent, and Illinois’ 6.96. Nearly one in four subprime loans in Missouri - about 11 percent of all loans - are past due, and 30 percent of borrowers with a subprime adjustable rate mortgage are behind on payments.
Foreclosure starts in both Missouri and Illinois declined slightly in the third quarter from the second, according to the survey.
Behind the debate over remaking U.S. financial policy will be a debate over who’s to blame. It’s crucial to get the history right, writes a Nobel-laureate economist, identifying five key mistakes—under Reagan, Clinton, and Bush II—and one national delusion.
http://www.vanityfair.com/magazine/2009/01/stiglitz200901
The ever increasing amount of debt from house and payday loans are contributing to the mess we’re now in. Once President Obama comes into office, we’re hoping he’ll help change the system.