Mortgage Delinquencies Spiked 4Q 2009

I can haz double dip now?

... TransUnion's quarterly analysis of trends in the mortgage industry found that mortgage loan delinquency (the ratio of borrowers 60 or more days past due) increased for the 12th straight quarter, hitting an all-time national average high of 6.89 percent for the fourth quarter of 2009. This quarter marks the first time the mortgage delinquency rate increase did not decelerate after doing so for three consecutive periods.

This statistic, which is traditionally seen as a precursor to foreclosure, increased 10.24 percent from the previous quarter's 6.25 percent average. Year-over-year, mortgage borrower delinquency is up approximately 50 percent (from 4.58 percent)...

When you've finally burned through cashing in a 401K and life insurance policies, sold the second/third car, canceled all the magazine subscriptions, etc trying to hang on hoping for a recovery and a job, this is what happens next.

And what do you suppose the chances of these people being able to pay any 401K cash out tax liability are? Slim? None? Wouldn't surprise me if Federal tax receipts for FY 2009 crater. But hey -- we hired lots of new IRS agents to go chase homeless people. They'll squeeze it out of them.

posted by Purp at 10:45 AM

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