A New Record For Defaulting Mortgages

A report this morning by CNBC showed the pace at which homeowners defaulted on their home loans slowed over the summer for the third straight quarter but the overall rate of delinquency hit a new high.
Transunion, the credit reporting agency showed that for the months of July, August and September, 6.25% of all U.S. mortgages were at least 60 day behind on their payments. That is an increase of 58% from a year ago.
Transunion goes on to say that allthough the slowing growth rate is a positive sign, the increase shows there are many troubled loans still out there and does not expect those numbers to decline until mid 2010.
In California the rate increased to 10.2% compared to 5.8% last year.
As I try and understand these figures and their significance, I can’t help but wonder why many homeowners which are in fact behind in payments, refuse to seek help at all. Granted there are many scams targeting distressed property owners and can be very difficult to seperate a scam from a legitimate source. There are many honest Realtors® who can assist you with the possiblity of a Short Sale, you should contact your lender for a loan modification or a workout program and there are many government resources such as www.hud.gov which is the Department of Housing and Urban Developement, where you have access to housing councelors at no cost, and information you may not be aware of for your specific situation.

My point is this; although no one can understand what it is that you are going through and ultimately has gotten you to this point, behind on your mortgage and other bills as well, seek the help you need! Most in this situation feel ashamed and embarassed but they should not just simply give up. Explore your options and try to make the best of your situation. Should you ignore it, this will affect you in the decade to come, limiting your credit availability dramatically. Let’s not forget this country runs on credit. You can’t even get a cell phone without it! Those who take it upon themselves to fix the problem will undoubtedly recover faster, and some may even have the option of buying again within a few short years.