Mortgage delinquencies keep increasing
-->Credit Crunch, Credit, Bailout News, California Housing Crash, The Economy, Florida Housing Crash, Real Estate March 3rd, 2009
The effects of the devastating financial crisis are showing up everywhere in the real economy. According to AP via Yahoo Finance:
CHICAGO (AP) — The number of people who were late making their mortgage payments shot up 53 percent in the fourth quarter of 2008 from the same period in 2007, according to data provided by TransUnion LLC.
The credit reporting agency said its database shows delinquencies — or the percentage of mortgage holders at least 60 days behind on payments, considered a precursor to foreclosure — jumped to 4.58 percent nationally, from 2.99 percent for the 2007 fourth quarter.
The Wall Street Journal had another interesting article related to this.
More Delinquent Debtors Mean More Jobs For Collectors; Start Off Sweet, Finish Up Stern
Delinquency and default rates on credit cards are within sight of those from early 2002, when credit-card companies wrote off about 7.7% of their loans. J.P. Morgan Chase & Co., the nation’s largest issuer of credit cards, has predicted that default rates could top 8% by the end of this year.
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