Recent mortgage industry data reports are showing that the mortgage crisis continues to alarming deepen despite a variety of government assistance programs and capital. One of the major contributors in the expansion of job loss to multiple sectors and an increasing number of States.
According to First American CoreLogic's data 1 in 5 homeowners owe more than their properties are worth. This number represents 8.31 million homes with negative equity at the end of 2008. A number that is up 9 percent from 7.63 million at the end of September 2008.
The real alarm is in the report's analysis that 2.16 million more homes could be added to those already under-water is home prices drop another 5 percent--a real possibility give current economic indicators.
The aggregate value of residential properties in the US fell from $19.2 trillion from $21.5 trillion in 2007. The housing markets currently impacted the most are California, Florida, and Nevada. However, as the economy continues to weaken housing markets in multiple States are feeling consistent declines--Arizona, Georgia, Michigan, and Ohio are starting to feel even larger percentage declines resulting from job loss impacts.
Mortgage Bankers Association data is showing the first order effect of these job loss models. Released today, the MBA default statistics show 5.4 million behind in payments or in foreclosure. This represents 12 percent of US mortgages.
Mortgage defaults and foreclosures are up 10 percent in the July-September 2008 quarter, up 8 percent from a year prior.
The sharpest increases in mortgage defaults and foreclosures are in Louisiana, New York, Georgia, Texas, and Mississippi--all States facing massive job loss.
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