I am reading Financial Armageddon and there is a series of different posts on the mortgage issues. This caught my interest:
Using [Lender Processing Service] data, for all loans more than 90 days in arrears, the average days delinquent is now at 272 days—up from 204 days in early 2008. For loans in foreclosure, the aging numbers are even more staggering: loans in this bucket average 410 days delinquent, up from 260 days delinquent in early 2008.
Ponder those numbers for just a second. On average, severely delinquent borrowers have gone more than 9 months without making a mortgage payment—and yet foreclosure has not yet started for them. For those borrowers who are in the foreclosure process, it’s been an average of 13.6 months—more than one full year—since they last made any payment on their mortgage.
The article suggests there are 7.4 million people in this situation. That seems to me a heck of a lot of money not going into housing and probably going into other areas of the economy. That seems like a heck of a lot of money other areas of the economy will lose when these people eventually start paying for housing again.