St Louis Loan: Recovery Hindered By Home Mortgage Crisis
There is practically no one who has followed this mortgage crisis that would disagree that it has drug the economic recovery downhill as more and more homeowners are falling behind on their loan payments.
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.
A more sobering number puts this close to 8 percent of consumers who are currently at risk at losing their home or 4.4 million people closer to foreclosure.
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.
Economists are now saying 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.
Once spring arrives, most homeowners seem to find themselves currently on their St Louis loans once again.
And with so many homeowners in foreclosure, it shows that the Obama administration’s $75 billion foreclosure prevention program hasn’t accomplished its real purpose in slowing these numbers.
Some of the catalysts that has kept our economy in the proverbial toilet has been unemployment or reduced income which continues to keep these distressed homeowners in fiscal limbo.
Another major problem that led to this lending snafu started with less than stellar lending standards.
But the mortgage defaults are not limited to the sub-prime market. The fastest growing group of foreclosed homes is those who had good credit and took out conventional, fixed-rate mortgages.
And the often misused adjustable rate mortgage (ARM) loans that kicked off the foreclosure crisis are now making up a smaller share of new foreclosures with only 14 percent of new foreclosures in the first quarter which was down 27 percent just a year ago.
But many say there is some encouraging news on the horizon. The number of homeowners starting to show early financial trouble may be going down. Let’s hope this downward trend continues throughout 2011.
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.
