• Second Larger Wave of Mortgage Defaults is Building
Posted by Tom Harnish on August 15th, 2008
If what you do will work at home, make sure you have a home to work from. Telecommuting, home based jobs, and home based business opportunities all depend on space in your house, after all.
A second, far larger wave of mortgage defaults is building acccording to The International Herald Tribune.
One in every 171 households was in some stage of the foreclosure process, an increase of 121 percent from a year earlier, RealtyTrac Inc., a real estate database firm, said last week in a statement.
After two years of upward spiraling defaults, the problems with mortgages made to people with weak, or subprime, credit are showing the first, tentative signs of leveling off.
But with the U.S. economy struggling, homeowners with better credit are now falling behind on their payments in growing numbers. The percentage of mortgages in arrears in the category of loans one rung above subprime, so-called alternative-A, or alt-A, mortgages, quadrupled to 12% in April from a year earlier.
Delinquencies among prime loans, which account for most of the $12 trillion market, doubled to 2.7% in that time.
Nouriel Roubini, professor of economics at New York University, on CNBC said he sees a severe recession that on the economic horizon that might last until the middle of next year, with the total losses becoming as much as $2 - $3 trillion.