Economic Recovery On Hold Due To St Louis Home Loan Crisis
The doom and gloom of the housing market has left an indelible print in history as one of the worst economic times the United States has ever faced.
The record number of home defaults has definitely had a long-lasting negative impact on this housing market. It is surprising that certain St Louis home loan professionals still say a major rebound is on its way.
Current statistics show that more than 10 percent of homeowners have missed at least one mortgage payment in the first quarter of 2010 according to the Mortgage Bankers Association.
This has led to a new record high of defaults over a 90 day home loan payment history.
Numbers are saying that 3.7 percent of mortgage owners have now missed at least one payment due to this slow economic recovery.
With almost 8 percent of homeowners at risk of losing their home, this would now equate to about 4.5 million new foreclosures hitting the market.
And if any of the loan modification programs fail to help these consumers, their properties will go up for sale either as a foreclosure or a short sale.
Thus, a large number of St Louis mortgage loan consultants are predicting a double-dip recession partially due to home prices remaining low.
Again, many are predicting that home prices will fall about 5 percent and hit bottom in the spring of 2011.
Maybe the government got one thing right during this crisis. That was the Federal tax credits which boosted house sales this past spring and summer.
When this program ended, the Mortgage Bankers Association said mortgage applications dropped to their lowest level in over 13 years.
It's interesting to note that heating bills and holiday expenses normally push mortgage delinquencies higher near the end of the year which explains needed statistical adjustments due to seasonal factors.
Then when spring comes, most consumers seem to get caught up on their St Louis mortgage loans.
And with more than 4.8 percent of homeowners in foreclosure which is also a record high, it clearly shows that the Obama administration's $75 billion foreclosure prevention program isn't working.
Other bleak statistics that has kept this sinking economy from recovering has been unemployment and reduced incomes.
Another major problem that led to this lending snafu started with less than stellar lending standards.
But surprisingly, homeowners with good credit who took out conventional, fixed-rate loans are now becoming the fastest growing group of foreclosures.
Furthermore, the often misused adjustable rate mortgage (ARM) loans that kicked off the foreclosure crisis are now making up a smaller share of new foreclosures.
However, there was some encouraging news on the horizon. The number of homeowners starting to show early financial trouble is starting to go down. Let's hope this downward trend continues throughout 2011.
The record number of home defaults has definitely had a long-lasting negative impact on this housing market. It is surprising that certain St Louis home loan professionals still say a major rebound is on its way.
Current statistics show that more than 10 percent of homeowners have missed at least one mortgage payment in the first quarter of 2010 according to the Mortgage Bankers Association.
This has led to a new record high of defaults over a 90 day home loan payment history.
Numbers are saying that 3.7 percent of mortgage owners have now missed at least one payment due to this slow economic recovery.
With almost 8 percent of homeowners at risk of losing their home, this would now equate to about 4.5 million new foreclosures hitting the market.
And if any of the loan modification programs fail to help these consumers, their properties will go up for sale either as a foreclosure or a short sale.
Thus, a large number of St Louis mortgage loan consultants are predicting a double-dip recession partially due to home prices remaining low.
Again, many are predicting that home prices will fall about 5 percent and hit bottom in the spring of 2011.
Maybe the government got one thing right during this crisis. That was the Federal tax credits which boosted house sales this past spring and summer.
When this program ended, the Mortgage Bankers Association said mortgage applications dropped to their lowest level in over 13 years.
It's interesting to note that heating bills and holiday expenses normally push mortgage delinquencies higher near the end of the year which explains needed statistical adjustments due to seasonal factors.
Then when spring comes, most consumers seem to get caught up on their St Louis mortgage loans.
And with more than 4.8 percent of homeowners in foreclosure which is also a record high, it clearly shows that the Obama administration's $75 billion foreclosure prevention program isn't working.
Other bleak statistics that has kept this sinking economy from recovering has been unemployment and reduced incomes.
Another major problem that led to this lending snafu started with less than stellar lending standards.
But surprisingly, homeowners with good credit who took out conventional, fixed-rate loans are now becoming the fastest growing group of foreclosures.
Furthermore, the often misused adjustable rate mortgage (ARM) loans that kicked off the foreclosure crisis are now making up a smaller share of new foreclosures.
However, there was some encouraging news on the horizon. The number of homeowners starting to show early financial trouble is starting to go down. Let's hope this downward trend continues throughout 2011.
About the Author:
To learn more about a St Louis mortgage, stop by Floyd J. Tapia's site at http://www.LibertyLendingConsultants.com/StLouisMortgage where you can find real tips about securing a St Louis loan. We also invite you to call us at 314-334-0210.