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10% Of Homeowners Behind In Payments Or In Foreclosure

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Some more “depressing” statistics come out on the heels of the massive jobless claims last month.

From Bloomberg:

The share of mortgages 30 days or more overdue rose to a seasonally adjusted 6.99 percent while loans already in foreclosure rose to 2.97 percent, both all-time highs in a survey that goes back 29 years, the Mortgage Bankers Association said in a report today. The gain in delinquencies was driven by an increase of loans with payments 90 days or more overdue.

“Until we see a turnaround in the job situation, we’re not going to see these numbers improve,” said Jay Brinkmann, chief economist of the Washington-based bankers group, in an interview. “We’re seeing more loans build up in the 90-days bucket as lenders work to modify loans and states put in place programs that delay foreclosures.” […]

New foreclosures fell to 1.07 percent from 1.08 percent in the second quarter as some states enacted laws to temporarily stop home repossessions and lenders increased efforts to modify the terms of loans, Brinkmann said.

Understandably, home sales are dropping like a rock, as are home values…

Purchases of existing homes in October slid to an annual rate of 4.98 million, lower than forecast, the National Association of Realtors said in a Nov. 24 report. The median price fell 11.3 percent from a year earlier, the most since the group began collecting data in 1968.

The funny thing is it’s a reasonably good time to buy because it’s a buyer’s market, but just make sure you’re first and foremost buying a home for shelter and secondly for the tax incentives.

Long story short, the days of buying a home because it’s a good investment are over for the foreseeable future.