Chicago saw the largest increase in first mortgage default rates as the rate for the country rose from 1.99 percent to 2.08 percent in October, United Press International reported on November 15, 2011. While UPI broke the news as “another sign that more foreclosures are on the way,” defaults on other credit categories declined.
Chicago’s increase was the biggest in moving from 2.47 percent to 2.64 percent, but Miami fell the most. David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Indices, told UPI that the 4.16 percent in South Beach was “well below the near 19 percent it had registered a little more than two years ago.”
“Home purchases are obviously very large investments, so first mortgage loans are substantially larger than any other consumer loan type,” Blitzer told UPI. “Consequently, when such a loan goes into default it is more serious from the perspective of the consumer’s overall financial status than the others.”
Troubles maintaining payments on mortgages lead many homeowners to consider bankruptcy . Do you think that an increase in first mortgage defaults will lead to more people needing foreclosure help ? Are you concerned that another wave of foreclosures could have an effect on your neighborhood? Tell us about your situation.
Benjamin Brand Services – Chicago bankruptcy lawyer