Back to 2008: Delinquent Mortgages are Up
Never a good sign. From Businessweek:
The percentage of U.S. mortgages overdue by one month rose to the highest level in a year in the second quarter as homeowners who lost jobs were unable to make their payments.
The share of home loans overdue by 30 days rose to 3.46 percent of all mortgages, from 3.35 percent in the first quarter, according to a report today from the Mortgage Bankers Association in Washington. The percentage of mortgages overdue by 60 days increased to 1.37 percent from 1.35 percent, while foreclosures dropped for the second consecutive quarter.
We've spent billions of dollars propping up banks (and homeowners) and none of it has worked. We've lent $1.2 trillion to banks and investment houses, and that hasn't worked. Maybe the worst thing isn't letting banks fail and foreclosures occur. Maybe it's worse to intervene, which only makes the problem last longer.
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Sep '10
Re: Back to 2008: Delinquent Mortgages are Up
Let me be perfectly clear: Bullet trains. Give us bullet trains.
Oct '10
Re: Back to 2008: Delinquent Mortgages are Up
"Maybe it's worse to intervene, which only makes the problem last longer."
From the perspective of almost 4 months of unemployment, the percentages you cite for mortgage payment lateness appear far too low. I'm afraid that too many interventions have happened over the last four of five years to expect any coherent resolution of the mess we now have.
In effect, the best plan is for each of us to look at our own situation and man-up to the chaos we face for the next several years, and once we resolve our own situational survival, start working on pushing for solutions. Working only on the solutions without having that personal plan will only work for the short run. Once the issues of survival push against you, your political plan will be lost in a panic.
May '10
Re: Back to 2008: Delinquent Mortgages are Up
At the start of all of the home mortgage financial mess in '08, I kept thinking the "solutions" the political class came up with were just kicking the can down the road. I was right. :-\ Eventually, chickens will come home to roost.
Aug '10
Re: Back to 2008: Delinquent Mortgages are Up
B of A stock is tanking too. Yikes.
May '11
Re: Back to 2008: Delinquent Mortgages are Up
If I recal correctly in 2008 Holman Jenkins writing in the WSJ had an answer to this mess.
He proposed buying all the defaulted real estate loans from the mortgage lenders, foreclosing them, razing the buildings and having a fire sale on the newly vacant properties.
The result would have been to remove the glut of unaffordable housing and revitalizing the housing industry (presumably building affordable alternatives.)
It seemed to be an unacceptable waste at the time. In hindsight though...