Foreclosures Rise, Driven by Loss of Jobs and Income

Interesting reading below about the rise in foreclosures being driven by job loss.

Posted By susanne On August 23, 2009 @ 1:06 pm In Real Estate, Today's Marketplace

RISMEDIA, August 24, 2009-(MCT)-Delinquency and foreclosure rates for U.S. mortgages continued to rise in the second quarter, with loans to the most qualified borrowers going bust at an unnerving clip, especially in hard-hit states such as Florida and California.

“The reason people are defaulting on these (loans) is they simply don’t have income, and there aren’t any loan modification programs for someone who does not have income,” said Rick Sharga, the vice president of the Irvine, Calif., firm RealtyTrac, which specializes in foreclosure research. The trend will grow worse.
“The rising levels of unemployment will probably, over the next nine to 12 months, become the primary impetus for foreclosure activity,” Sharga said. “That’s the wave that is just starting to hit and we’re just starting to see the problems now.”

Read the full article (may need to cut and paste): http://rismedia.com/2009-08-23/foreclosures-rise-driven-by-loss-of-jobs-and-income/print/