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Subprime Loan Problems

By
Real Estate Agent with Keller Williams Realty

Subprime Loans Problems

 

It comes to no shock that 48% of the nation's homeowners that have subprime, adjustable rate mortgages are behind on their obligations or in foreclosure as been reported by local and national media outlets unless you have your head in the sand!

States such has Florida, California, and Nevada that led the reckless lending practices are now no longer driving up the nation's delinquency rates.  States such as Georgia, Louisiana, New York and Texas where the economies have deteriorated rapidly are leading this unfortunate title now.

A record 5.4 million American homeowners who have a mortgage payment of any type or roughly 12 percent were at least one month behind or in foreclosure at the end of 2008 as reported by the Mortgage Bankers Association of America.  That's up 2 percent over 2008's third quarter reporting figures.  At the end of 2007 that figure was 8 percent, a 4 percent jump in less than two years, ouch!

National legislation has been passed by the House to give bankruptcy courts the power to reduce mortgage payments.  Stay tuned for more!

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