Unemployment causing rise in foreclosures
Posted on: Monday, 15 December 2008, 10:04 CST
The primary cause of U.S. foreclosures is shifting from financial to economic issues as unemployment rises, national records show.
Unemployment triggered 46 percent of all 90-day delinquencies in the first half of 2008, the Federal Home Loan Mortgage Corp. said.
By contrast, in 2006, 36 percent of three-month delinquencies were caused by income loss, USA Today reported Monday.
The primary reason for 90-day delinquencies in 2007 was risky loans, including many subprime loans with adjustable rates, newspaper said.
The Labor Department said 4.3 million workers were collecting unemployment benefits.
The unemployment rate rose last month to 6.7 percent.
With layoffs mounting, it's not going to be pretty,
said Rick Sharga of RealtyTrac.
You're going to see whole different regions of the country suffer,
he said.
Source: United Press International
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