Borrowers Are Falling Behind on Mortgages Essay

Borrowers Are Falling Behind on Mortgages Essay

Length: 610 words (1.7 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

As home prices rise and the economy recovers, fewer borrowers are falling behind on their mortgages, or at least on their primary mortgages.

During the housing boom, millions of Americans took advantage of equity gains by pulling money out of their homes through home equity lines of credit (HELOCs). These were largely interest-only loans for 10 years, but that decade is now up for some and coming up for many more. Now, as these loans enter their so-called amortization period--the time when borrowers must start paying down the principal--a growing number can't.

"In the aggregate, the home equity market is experiencing lower delinquencies," said Herb Blecher of Lender Processing Services. "However, among the HELOC population that has already begun amortizing, we are actually seeing an increase in new seriously delinquent loans."Year to date, new problem loan rates--seriously delinquent loans that had been current six months ago--on those that have already begun amortizing are up 11 percent, as opposed to down 33 percent for those that have yet to begin amortizing. Nearly half of all ...

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Falling Behind by Robert Frank Essay

- Robert H. Frank’s book Falling Behind is a short, lucid, and compelling account of what is going on with the middle class”(Alexander Kemestrios Ben). That is what one reviewer on Amazon.com commented about Frank’s book Falling Behind: How Rising Inequality Harms the Middle Class. In order to engage readers and support their ideas, most argumentative nonfiction books use statistics, logical reasoning, personal anecdotes, and real-life examples. While all of these strategies such as should make an interesting and compelling argument, the question is not of how interesting the book is, but rather is it or is it not a quality argumentative nonfiction book....   [tags: Falling Behind, Robert Frank]

Better Essays
2328 words (6.7 pages)

Subprime and Adjustable Mortgages Essay

- Sometimes, when people buy a home for first time, they usually get subprime mortgage rates. Lenders grant these types of rates are to borrowers whom their credit history is not sufficient to get a typical mortgage. Sometimes, these borrowers have bad or even insufficient credit history. Subprime mortgages regularly offer loans that are interest only. These loans, that are “interest-only,” are easier for buyers to afford. When you get one of these loans, the lender does not require you to pay any of the principle for the first few years of the loan....   [tags: Finance]

Better Essays
1167 words (3.3 pages)

Essay on Financial Crisis : Turning Home Mortgages

- By turning home mortgages into securitised bonds shadow banks used the CDOs as collateral in their repos. It was these mortgage based CDOs that caused the financial crisis, as the banks realised that this was a very profitable operation. Furthermore investors wanted to invest in a seemingly safe venture. Shadow banks then bought more mortgages and created bonds until they started to sell sub-prime mortgages as there were no alternative options with the desired level of security available. Soon these sub-prime homeowners began to default on their mortgages and so the shadow banks claimed their houses and less money went towards the bond....   [tags: Subprime mortgage crisis, Bear Stearns, Finance]

Better Essays
719 words (2.1 pages)

The United States Is Falling Behind The Nation Essay

- The United States is falling behind in the nation. The United States is trying to better our education system but they are not taking the right steps in doing it. Testing in the United States has become a popular way to see how children are learning. Poverty in the United States has been a big problem in the United States and continues to grow every day. Kids struggle to learn because they lack food, sleep, shelter and health care. More children are growing up around violence and drugs. The United States needs to address poverty to help children get a better education....   [tags: Education, Teacher, United States, School]

Better Essays
774 words (2.2 pages)

Essay about Benefits Of Fha Loans Are Mortgages

- Benefits of FHA loans FHA loans are basically mortgages insured by the Federal Housing Administration whose main aim is to enable borrowers get a house with very little out of pocket expense, insuring the loan against future default via their mortgage insurance. This ensures that the lender doesn’t go into a loss in case the borrower defaults on the loan. If you are buying a home for the first time then it is the best option because the requirements are less strict. The down payment is 3.5%, which is lower than the common home loans that requires down payments of between 5-10%....   [tags: Debt, Credit, Loan, Personal finance]

Better Essays
732 words (2.1 pages)

Essay on The Transformation of Ishmael in Snow Falling on Cedars

- The Transformation of Ishmael in Snow Falling on Cedars What can be said about a novel of such luminance as Snow Falling on Cedars that has not already been said. Certainly it is a work of much vision and insight and speaks volumes about prejudice and race. The wordplay of Guterson creates a world of vivid reality-it surrounds the reader with sights, smells and a clearly defined sense of touch. Perhaps lost amidst the smells of the strawberry fields, the cold of the winter storm, and the deep social statements about the nature and quirkiness of prejudice is the fact that this beautifully crafted story of immense complexity is in reality a very simple story about the identity of one man....   [tags: Snow Falling Cedars Essays]

Free Essays
2027 words (5.8 pages)

Snow Falling on Cedars Essay

- Snow Falling on Cedars Everyone has experienced prejudice sometime in their life. It has been an undeniable force in society ever since history was recorded. Even the most open-minded people and enlightened organizations can be blamed as being prejudice sometime or another. However, prejudice always takes its toll from these people who form opinions beforehand or without any facts. The novel, Snow Falling On Cedars, take place during a time in which Americans are prejudice towards Japanese people....   [tags: Snow Falling Cedars Japanese Essays]

Better Essays
1127 words (3.2 pages)

Falling Behind Essay

- In the US the education system is not all what it seems to be. In comparison to the other countries the US has fallen behind. According to CNN news “American children aren't necessarily getting smarter or dumber, but that might not be good enough to compete globally, according to numbers cited Tuesday by Secretary of Education Arne Duncan. He noted a special analysis put out last week by the National Center for Education Statistics that compares 15-year-old U.S. students with students from other countries in the Organization for Economic Development....   [tags: Education]

Free Essays
1917 words (5.5 pages)

David Guterson's Snow Falling on Cedars Essay

- David Guterson's Snow Falling on Cedars Snow Falling on Cedars, a novel written by David Guterson, depicts the struggles that many Japanese-Americans faced in our country throughout World War II. Though the events and characters in this novel are fictional, the manor in which they were treated was not. Ever since the tragedy of December 7, the bombing of Pearl Harbor, Japanese people throughout the United States were seen as traitors through the eyes of Americans. Every Japanese, whether or not they were a natural born citizen or an illegal alien, were all treated as a possible threat to the safety and well being of the United States....   [tags: Snow Falling on Cedars David Guterson Essays]

Better Essays
1389 words (4 pages)

Adeline Yen Mah's "Falling Leaves" Essay

- Adeline Yen Mah's "Falling Leaves" Works Cited Missing      For years, the world has been oblivious to the painful, degrading traditions toward women that take place behind the “Bamboo Curtain” of China. Falling Leaves , by Adeline Yen Mah, unveils the darker side of Chinese culture through her eyes as an unwanted Chinese daughter. Shocking mistreatment, of not only the author, but also the females in her extended family keep suspense alive throughout the book. My heart sobs at each account of Adeline’s tortured life, but through it all, there was a flicker of her spirit that could not be put out....   [tags: Mah Falling Leaves Gender Girls Essays]

Better Essays
817 words (2.3 pages)