Most economists are reluctant to say anything positive about this economic recovery. Homeowners by the thousands are falling farther and farther behind on their loan payments.
Although St Louis refinance experts are predicting improvements soon, the number of homeowners that are in default or at risk of foreclosure will no doubt have a lingering effect on the overall economy.
The Mortgage Bankers Association reported that over 10 percent of home loan consumers have missed one or more mortgage payments in the first quarter of 2010.
This has led to a new record high of defaults over a 90 day home loan payment history.
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.
Again, many are predicting that home prices will fall about 5 percent and hit bottom in the spring of 2011.
Many feel that the one thing the government got right during this crisis involved the Federal tax credits which boosted home sales in the spring and summer of 2010.
As a result, mortgage applications fell to their lowest level in almost 13 years said the Mortgage Bankers Association in a separate industry report.
Most professionals agree 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.
Once spring arrives, most homeowners seem to find themselves currently on their St Louis loans once again.
And with so many homeowners in foreclosure, it shows that the Obama administration’s $75 billion foreclosure prevention program hasn’t accomplished its real purpose in slowing these numbers.
Some of the catalysts that has kept our economy in the proverbial toilet has been unemployment or reduced income which continues to keep these distressed homeowners in fiscal limbo.
But the biggest factor that contributed to this mortgage crisis was the less than stellar lending standards.
But even those who had good credit and took out fixed-rate home loans are now becoming the biggest group to be foreclosed upon.
In addition, the often misused adjustable rate mortgage (ARM) loans that kicked off the foreclosure crisis are now making up a smaller share of new foreclosures with only 14 percent of new foreclosures in the first quarter which was down 27 percent just a year ago.
However, there was some encouraging news on the horizon. The number of homeowners starting to show early financial trouble is starting to go down. Let’s hope this downward trend continues throughout 2011.
To learn more about a St Louis mortgage, stop by Floyd J. Tapia’s site at http://www.LibertyLendingConsultants.com/StLouisMortgage where you can find real tips about securing a St Louis loan. We also invite you to call us at 314-334-0210.