When the mortgage crisis began, a large number of foreclosures were due to subprime loans and adjustable rates. But now as the financial crisis has grown, more and more foreclosures are due to job loss. I found this article in USA Today this morning that reports “one in three new foreclosures between April and June was from a prime, fixed-rate loan, up from one in five a year earlier.”
Our St. Louis Advisory Committee, made up of local non-profit organizations (from HUD-approved housing counseling agencies, to credit counseling services), has said the same thing–it’s no longer exotic loans that are causing foreclosure, but things like job loss, illness, etc.
The crisis is unfortunately affecting everyone in some way, shape, or form, but help is available. If you’re facing foreclosure or you’ve lost your job, be proactive and seek help. Call United Way’s 2-1-1 service at 1-800-427-4626 to connect to resources that can help you face the mortgage crisis.