Reports from the third quarter have indicated that there is data to show some homeowners are falling behind on their mortgage payments as delinquencies did increase, which has given some mixed opinions to the topic of mortgage delinquency as some officials feel that these problems that recently arose in terms of homeowners missing payments may not be an indication that we are regressing back into an area of trouble but there are also those who feel that these problems may indeed persist as unemployment, while viewed to be somewhat stable by some, is still quite high despite the fact that we have not seen increases as of late in the national unemployment rate.
Some feel that with continued high levels of unemployment and negative equity still in place, there are some homeowners who may struggle when it comes to making their mortgage payment as there are homeowners who are still turning to foreclosure prevention programs in the hopes of getting more affordable payments on their home loans. Yet, this does not necessarily mean that every homeowner who has seen delinquency arise during the third quarter or over the past few weeks will be in a position where this problem only gets worse, as there are also some positive numbers coming from the job market with jobs still being added, but of course we are a far from where many officials want the job and housing market to be before we see more prosperity and troubles like delinquencies begin to fall further.
Homeowners do have opportunities to avoid delinquency or find more affordability from both their servicer and state housing agencies in some areas, but of course these reduced payment programs are not always helpful to homeowners who are struggling to get by, and this also means that homeowners will likely face more foreclosures in the coming months before things get better. Understandably, some states are seeing more trouble in the area of mortgage delinquencies than others, as state unemployment numbers differ and some are well above the national unemployment rate, while others are well below this 9% rate as well.
There are officials who do have a more optimistic view as there are some areas where home prices and unemployment may be more stable, with other states who may still see problems when it comes to these areas of financial distress for homeowners, yet it’s hoped that as we enter into 2012 improvements will begin to be seen in home prices and the unemployment rate, despite the fact that predictions of continued foreclosures will be seen. However, homeowners are still being urged to pursue delinquency assistance programs that may help with either their mortgage payment specifically or their overall financial life in the hopes of getting in a position where homeowners can meet required debt obligations, even if financial problems are present.
Since delinquency does remain a problem in some cases, it could lead to homeowners filing bankruptcy, facing foreclosure, or participating in a short sale, in instances where negative equity and financial distress are in place, but of course there are still options that are available for homeowners who simply need a lower payment, may be in an underwater position, or may be unemployed and, despite the imperfections of these various programs that may help, homeowners are still being aided by these initiatives and it may help to prevent further delinquencies or financial problems for homeowners who do pursue these assistance programs.