Americans Not Paying Mortgage Due To Devaluation

July 7. 2009

Some Americans have stopped paying their mortgages, because they can't afford to anymore, while others, disheartened at owning a home, whose mortgage is two times the property's value, have been withholding payments out of disgust. It is a very tough predicament many face.

STORY SOURCE

U.S. consumers fall behind on loans at record pace

Tue Jul 7, 2009 1:11pm EDT - NEW YORK (Reuters) - Soaring U.S. unemployment and a shrinking economy drove delinquencies on credit card debt and home equity loans to all-time highs in the first quarter as a record number of cash-strapped consumers fell behind on their bills...

Late payments on home equity loans rose to 3.52 percent from 3.03 percent, and on home equity lines of credit climbed to 1.89 percent from 1.46 percent. A broader gauge showing late payments on eight categories of loans rose for a fourth straight quarter to a new record, edging up to 3.23 percent from 3.22 percent. That rate actually understates consumer pain because it excludes credit cards. The ABA tracks loan payments that are at least 30 days late...

http://www.reuters.com