Buzz About Sacramento: Performance Of Home Loans In The Weakened Economy

My friend, Jack had borrowed money from a private lender to buy a home. The interest rate on his home loan was much more than the government standards. Though he has a flexible repayment policy, Jack is overdue on his repayment. Like him, there are many others who are in debt on their home loans. A recent study on the performance of home loans by Mortgage Bankers Association shows a new pattern. The report shows an increase in the delinquency rates for home loans. This is a condition where the debts of people who have availed home loans are overdue. The Mortgage Banker’s Association works to strengthen the country’s residential real estate and expand the ownership of many affordable homes by promoting ethical lending processes.

The report reads, in the weakened economy many people who have availed home loans are feeling the stress. The deterioration in the home loan performance is aligned with the happenings of the other economic factors. The loans backed by commercial properties are reported to be performing better than residential loans.

The delinquency rate held on home loans for more than 30 days rose by 0.17 percent to reach a high of 4.06 percent and from 0.08 percent to 0.23 percent for 60 plus days.

The delinquency rate for multi families rose from 0.11 percent to 0.62 percent for more than 60 days and remained unchanged at 0.11 percent for 90 plus days. However, the delinquency rate for more than 90 days in insured banks rose from 0.51 percent to 3.43 percent.
Delinquency rates based on the unpaid balance for the principal was 4.06 percent for 30 plus days, 0.23 percent for 60 plus days on single family home loans at the end of the third quarter. However, the unpaid balance on multi family home loans was rated at 0.62 percent for 60 plus days and 3.43 percent for 90 plus days.

This analysis by the MBA looked into the pattern of banks and mortgage lenders. These groups together, hold 80% or more of the home loan debt delinquency. The analysis studies the procedures used by each individual while repaying the loan in order to track their performances.
To avoid being delinquent, individuals can make use of many government loan policies like consolidations for timely repayment of their home loans. For people like Jack, who cannot afford to pay high interests on the home loans from private lenders, the government issues many grants to buy homes. These grants are free money from the government to help people buy a home and improve their standard of living.

For additional resources and information please visit the following sites.

Resource Links:

http://www.gmacrealestate.com

Bill Fields All Star Coaching Program: http://www.AllStarCoaching.net
GreatWest GMAC Search all MLS Listings: http://www.LocalHomeLink.com
GreatWest GMAC Consumer Buyer/Seller Blog: http://www.GreatWestBlog.com

T. Sami Siddiqui (Broker/ Owner) Buzz About Sacramento Blog: http://www.samisiddiquiblog.com
Brodie Stephens (Executive Vice President) One Stop Blog: http://www.brodiestephensblog.com
GreatWest Podcasts- Weekly Updates on new REO, Short Sale, Bank Owned Foreclosure Listings: http://www.HouseTalkOnline.com
GreatWest Videos: http://www.youtube.com/brodiestephens
Facebook Brodie Stephens Profile Page: http://www.facebook.com/brodiestephens
Facebook GreatWest Profile Page: http://www.facebook.com/searchmlshomesforsale
MySpace Brodie Stephens Blog: http://www.myspace.com/brodiestephens
MySpace GreatWest Blog: http://www.myspace.com/greatwest
Picasa Web Album: http://picasaweb.google.com/brodiestephens