Their findings? Here's the highlight:
The Fed paper estimates that a 1-percentage-point increase in the unemployment rate boosts the chance of a 90-day delinquency by 10%-20%, and a 10-percentage point fall in house prices raises the probability of a default by more than half. A 10-percentage-point jump in the debt-to-income ratio, meanwhile, increases the chance of a 90-day delinquency by 7%-11%.
This actually tracks closely with the data that the MN Home Ownership Center highlighted in its 2008 Foreclosure Program Report:
Half of home owners reported facing either a decline in income (35%) or job loss
(15%) as a primary driver in their mortgage struggles.
Here's what the Center found when it analized the data from the statewide network of counselors:
Increase in loan payment was only cited 9% of the time as the reason for default!
No matter what the reason you, or someone you know may be falling behind... HELP IS AVAILABLE. For more information, click here.
Hat Tip: BubbleMeter
No comments:
Post a Comment
This is a moderated blog. That means all comments will be reviewed before posting. In addition, we expect that participants will treat each other, as well as the Center, our Counseling Network and other partners, with respect. We will not post comments that contain vulgar or abusive language; personal attacks of any kind; any offensive terms; spam; are clearly “off topic” or that promote services or products. Comments that make unsupported accusations will also not be posted.