Submitted by: Floyd J. Tapia

The doom and gloom of the housing market has left an indelible print in history as one of the worst economic recession times the United States has ever faced.

The record number of home defaults has definitely had a long-lasting negative impact on this housing market.

It is surprising yet hopeful that certain St Louis home loan professionals still say a major rebound is on its way.

The Mortgage Bankers Association reported that over ten percent of home loan consumers have missed one or more mortgage payments in the first quarter of 2010.

This has become a new record high showing a big jump in the number of borrowers who have missed three months of mortgage payments.

Approximately 3.5 percent of homeowners nationwide had missed one month of mortgage payments.

The total of possible foreclosures equates to about 4.3 million homeowners, or about 8 percent of all Americans who are at risk of losing their homes.

And the majority of the loan modification programs unveiled by the Federal government are not likely to prevent any of the homes from going into foreclosure or being sold as a short sale.

St Louis home loan experts are afraid that due to the continual dip in home prices that a double-dip recession may be on the horizon. So, Americans are still preparing for the worst.

Economists are now saying that home prices will continue to fall about 5 percent more and possibly hit rock bottom in the spring of 2011.

But although the cynics are growing in number, many feel that the government got one thing right during this crisis. That was the Federal tax credits which boosted house sales this past spring and summer.

But when it ended, the end result was that mortgage applications fell to their lowest level in almost 13 years. That’s what was said by the Mortgage Bankers Association in a separate industry report.

It’s interesting to note that heating bills and holiday expenses normally push mortgage delinquencies higher near the end of the year which explains needed statistical adjustments due to seasonal factors.

Then when spring arrives, most of those borrowers become current on their St Louis home loans again.

And with more than 4.8 percent of homeowners in going into foreclosure which is also a record high, it clearly shows that the Obama administration’s $75 billion foreclosure prevention program isn’t working.

Other bleak statistics that has kept this sinking economy from recovering has been unemployment and reduced incomes.

And what experts feel was the main problem that led to this lending snafu all started with the less than stellar lending standards the banking industry used.

But even those who had good credit and took out fixed-rate home loans are now becoming the biggest group to be foreclosed upon.

Furthermore, the often misused adjustable rate mortgage (ARM) loans that kicked off the foreclosure crisis are now making up a smaller share of new foreclosures.

But the good news is the number of homeowners starting to show early financial trouble is going downward. Let’s hope this trend continues throughout 2011.

About the Author: When a consumer wants to know more about a

St Louis mortgage

loan, they visit Floyd J. Tapia’s site at http://www.RFPCommercialLending.com on how to choose the best

St Louis commercial lending, financing and refinancing loan

. Or give us a call at 877-334-0210 or 314-334-0210.

Source:

isnare.com

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