What was once a financial taboo by not faithfully paying one's mortgage payment is now becoming chic by many standards. Both national as well as local St Louis mortgage owners no longer wish to have the financial burden of what they legally owe.
In fact, they are diverting their cash flow from their housing expense to more frivolous expenditures such as credit card debt, entertainment and other debts less important and costly.
Thus, the money used gets them out of these secondary debts allowing them to get by or enjoy life's recreations. It has now become a cat and mouse game with the attitude of 'force me out if you can.'
It seems the problem stems from the fact that these disillusioned borrowers feel that the banks or lenders are totally to blame for what has happened in the housing industry. Thus, they feel no moral responsibility nor feel accountable to finish paying their loans.
On the other hand, the previous list of borrowers do not include those who were given misleading financial information or erroneous advice during the St Louis finance and lending process. And we are not talking about those who lost their jobs due to this fiscal fiasco.
The sad part is the greed that was perpetrated not just from the lenders involved but the consumer who also took advantage of the simple lending criteria to the point of committing out right fraud on their lending applications. These ones knew all the long they couldn't afford the home they were trying to buy.
Recent data shows that official foreclosure procedures have been initiated against almost 1.8 million households. And the ability to slow these serious lending problems seems next to impossible.
Another problem that borrowers and mortgage servicers will be facing will be legal challenges like foreclosure moratoriums.
To find a lasting solution for this growing problem has drawn criticism towards and pressure from Capitol Hill to bring about more loan modifications and then graduate these into permanent home loans.
Another problem that economists are noticing is the incapability and even the outright refusal of lenders wanting to deal with so many national and St Louis home loans that are in default.
According to LPS Applied Analytics, the average mortgage owner already in foreclosure has been delinquent for 438 days before finally being evicted. This is up from 251 days in January 2008.
Thus, when you see these ones not paying their responsible housing debts, they are in reality living 'rent free' off society. And the somber news is the St Louis Refinancing Group news team has been reporting this group is growing faster and faster each day.
There are statistics circulating the industry speculating that more than 650,000 households have not made a payment on their home loan in over 18 months. That is over 547 days.
With political and consumer anger over the problem of homeowners who can pay their home loan but refuse to do so may be coming to an eventual end. There is legislation being proposed in Washington that would stop these freeloaders from using government sponsored funds when purchasing a future home.
Article Source: https://www.bharatbhasha.com
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Article Added on Tuesday, October 4, 2011
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