According to an article in the Star-Telegram, the number of people delinquent with their mortgage payments shot up 53 percent indicating a future sharp rise in foreclosures.
The article quoted figures from 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 mortgage delinquency rates are alarming to say the least and a bad sign that future foreclosures are set to rise higher than expected. Some bankers such as Citigroup have taken the initiative to curb foreclosures by slashing mortgage payments, offering foreclosure moratoriums and backing bankruptcy reform that would give bankruptcy courts the power to modify toxic mortgages.
But other bankers have insisted on not reaching out to help homeowners facing foreclosure . These numbers are a clear indicator that if we fail to act now we could be facing a foreclosure catastrophe with countless numbers of families losing their homes and municipalities losing millions of dollars in property tax revenues. The actions of many bankers seem to be self-destructive.
What exactly will they do with millions of foreclosures sitting on their balance sheets? It is in their benefit to take action now to stem the tide of foreclosures sweeping over every city and state in this country.