St Louis Mortgage Lending: Mortgage Crisis Puts Economy On Hold

The doom and gloom of the housing market has left an indelible print in history as one of the worst economic times the United States has ever faced.

Although St Louis refinance experts are predicting improvements soon, the number of homeowners that are in default or at risk of foreclosure will no doubt have a lingering effect on the overall economy.

Current statistics show that more than 10 percent of homeowners have missed at least one mortgage payment in the first quarter of 2010 according to the Mortgage Bankers Association.

This has led to a new record high of defaults over a 90 day home loan payment history.

Approximately 3.5 percent of homeowners nationwide had missed one month of mortgage payments.

With almost 8 percent of homeowners at risk of losing their home, this would now equate to about 4.5 million new foreclosures hitting the market.

And due to the failure of the loan modification programs currently place, these properties are almost assured of facing either a foreclosure or a short sale.

Thus, a large number of St Louis mortgage loan consultants are predicting a double-dip recession partially due to home prices remaining low.

Economists are now saying that home prices will fall about 5 percent and hit bottom in the spring of 2011.

Perhaps the one thing the government got right during this crisis involved the Federal tax credits which boosted home sales this past spring but of course expired on June 30th.

As a result, mortgage applications fell to their lowest level in almost 13 years said the Mortgage Bankers Association in a separate industry report.

Others say that heating bills and holiday expenses normally push mortgage delinquencies higher near the end of the year which explains needed statistical adjustments due to seasonal factors.

Once spring arrives, most homeowners seem to find themselves currently on their St Louis loans once again.

And with more than 4.8 percent of homeowners in foreclosure which is also a record high, it clearly shows that the Obama administration’s $75 billion foreclosure prevention program isn’t working.

Some of the catalysts that has kept our economy in the proverbial toilet has been unemployment or reduced income which continues to keep these distressed homeowners in fiscal limbo.

But the biggest factor that contributed to this mortgage crisis was the less than stellar lending standards.

But the mortgage defaults are not limited to the sub-prime market. The fastest growing group of foreclosed homes is those who had good credit and took out conventional, fixed-rate mortgages.

Furthermore, the often misused adjustable rate mortgage (ARM) loans that kicked off the foreclosure crisis are now making up a smaller share of new foreclosures.

But the good news is the number of homeowners starting to show early financial trouble is going downward. Let’s hope this trend continues throughout 2011.

Thousands of businesses need a St Louis Commercial Mortgage or refinancing. Vist Floyd’s site at www.LibertyLendingConsultants.com/St-Louis-Commercial-Loans. A St Louis mortgage broker can help you with a home loan. Call us at 314-334-0210.