Prime loans are defaulting at an alarming rate
-->Bailout News, California Housing Crash, Florida Housing Crash, The Economy, Real Estate April 21st, 2009
Diana Olick makes some great points on her blog:
For the first time, this month the FHFA listed the top five reasons for default:
1. Curtailment of income (34.1 percent) …this can be salary reduction or self-employed losing clients
2. Excessive obligations (19.8 percent)…i.e. too much personal debt
3. Unemployment (8.1 percent)
4. Illness (6.5 percent)
5. Marital difficulties (3.5 percent)
We have been saying for many months now that with increasing unemployment come more foreclosures.
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