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Worst Housing Crisis Since The Great Depression Continues

Published 07/01/08 Jeff Bennett - Print Article
E-mail - editor@economyincisis.org

For 26 straight months, homeowners behind on their payments outnumbered those who have caught up on their payments, resulting in the worst housing crisis since the Great Depression, according to Bloomberg.com.

Reports found 67,967 homeowners fell at least 60 days behind in payments, while 40,687 rebounded. This crisis has left homeowners homeless while ruining their credit. The negligent and criminal activity committed by individuals in the housing market – who offered homes at sub-prime rates knowing some homeowners could not repay their mortgage – is inexcusable.

Source Bloomberg.com:

Newly delinquent homeowners outnumbered those who caught up on overdue payments for a 26th straight month in May, according to a trade group that tracks loans to people who put down less than 20 percent.

In the worst housing slump since the Great Depression, 67,967 homeowners with mortgage insurance fell at least 60 days behind on their loans, compared with 40,687 who got back on track, the Mortgage Insurance Companies of America reported today. Borrowers who take on debt of more than 80 percent of a home's value are often required to buy coverage that pays lenders if they default.

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