Bad Credit Blues

It is one thing to read that a record 1.2 million U.S. homes were in the foreclosure process the second quarter of 2008. It is another thing to consider that this figure represents almost 3 percent of all outstanding home loans. And keep in mind, this is only during the second quarter, or a 3 month period from April to June of 2008.

Need Job Loss Protection To Keep Your Bills Current?

Also consider the mortgage delinquency rate. This measures home loans that are behind by one payment or more, but have not yet gone into foreclosure. Almost 3 million homeowners, or over 6 percent of home loans, are behind on payments by, at least, 1 month.

Of course, some states have been hit much harder than others. If you live in Florida or California, you are much more likely to feel the problem than if you live in suburban Houston. These two states, along with 6 others, had foreclosure rates over the national average. This means that the problem is nationwide, but much more critical in 8 states then the other 32.

And while the mortgage crisis goes a lot deeper than just subprime loans, around a quarter of subprime adjustable rate mortgages (ARMs) are in trouble. The experts tell us that the economy must improve in order to end the crisis. The fact that last week’s unemployment numbers were dismal does not help.

Note: Look at some of the reasons for home mortgage delinquency, and then consider if you might be a good candidate for mortgage protection insurance to keep up on your bills.

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