Record Late Mortgage Payments

Foreclosure Getting Worse with Record Late Mortgage Payments

CNN Money reported that home owners are falling behind in their mortgage payments in record numbers, indicating the end of the tunnel is not nearing yet.

These states are impacted the most. They had red hot housing market not too long ago.
California
Florida
Arizona
Nevada
Among all the foreclosure processes started in the quarter, the ones from the above four states constitute 44%! That is a 4 out 50 states occupying almost half of the foreclosure landscape. Ouch, ouch.

Specifically, 28.8% of all prime ARM loans were delinquent in California. No wonder we never hear ads about ARM loans any more. What we hear now is 30-year-fixed or 15-year-fixed. The ARM loans are not bad if the home owners only plan to stay in the house for a few years while the interest rates are lower than those of the 30-year-fixed. The issue is that we never know what will happen in the future. Many of the California homes are investment homes, the buyers planned to flip it and make a profit. See what they have got!

The media do not focus on the lives of the average people who struggle to make mortgage payments and survive this market. They suffer a huge deal, but they will do everything not to get into foreclosure. Most of the times, they do not live a better life than those who get into foreclosure as far as eating, drinking, and traveling. This group of people represent the slippery slope life path of the former middle class. They are one life changing event from poverty. When the home prices are high, we feel happy and elated as if we are climbing up in the social economic ladder. A sudden or not-so-sudden recession changed everything and we have to struggle day in and day out.