Including all loan types, the states with the highest overall delinquency rates were Nevada (11.75 percent), Mississippi (11.7 percent) and Florida (10.67 percent). The states with the largest percentages of homes in foreclosure included Florida (10.56 percent), Nevada (7.83 percent) and Arizona (5.56 percent). Topping the list of states with new foreclosure starts were Nevada (3.35 percent), Florida (2.79 percent) and Arizona (2.52 percent).

The genesis of the recession — risky adjustable-rate loans made to borrowers with bad credit — remains a significant factor in foreclosures. Today, almost half of all subprime ARMs are past due or in foreclosure. In Florida, New Jersey and New York the number is above 55 percent.

The national rate was 3.85 percent, up about half a percent from the previous quarter, which represented a record high. As builders compete against a backlog of foreclosed properties on the market, median new home prices fell to $209,700 in April, compared with $246,400 a year ago. Thirty-year fixed mortgage rates then settled in at 5.375 percent, with no points, up half a percentage point from 4.875 percent a few days ago. Sales of new homes were down 34 percent in April from the same month in 2008. Sales rose slightly in April from March, posting a 0.3 percent month-to-month gain.

The mortgage crisis is spreading and hitting new heights: Borrowers with good credit now make up the largest share of foreclosures as job losses and pay cuts exact their toll. As job losses mounted and incomes dwindled, more and more homeowners fell behind on their loans, with payment problems socking greater numbers of previously credit-worthy borrowers who have traditional mortgages. The worst of the trouble continues to be focused in California, Nevada, Arizona and Florida, which accounted for 46 percent of new foreclosures in the country and reported the worst delinquency and foreclosure rates on prime fixed-rate loans. The four have suffered massive job cuts in the housing industry. There were no signs of improvement.

But experts expect the pain to spread throughout the country as job losses mount. MBA’s chief economist Jay Brinkmann estimates the unemployment rate will top out in mid-2010 and foreclosures to abate about six months afterward.

So to answer the question on whether the end of the crisis is in sight? The logical answer is no because :

1. Most of the ARM were originated in 2004 and 2005 with 5 year teaser periods. These would be ending in 2009 and 2010. Hence brining a new round of foreclosures
2. With interest rates rising again, people who would be able to purchase new homes would again reduce.
3. Unemployment rate is not slowing down.
4. Obama administration tax credit plan is not working since it is generally supposed to help people just out of college. These people are just not finding any new jobs in this market.

How is this news helpful for investors. Well, if you think about it, this is the best time to park some money from savings to stocks or mutual funds. When the market rebounds and the economy goes up, you will be among the happy ones! If you need help selecting an online brokerage firm, please visit http://www.comparebroker.com

Related readings: 1. Why Invest: http://www.comparebroker.com/why_invest.php 2. Should I invest now? http://www.comparebroker.com/should_i_invest_now.php

CompareBroker.com aims at helping Traders (Stocks, Equities, Options, IRA, Mutual Funds) to make smart investing decision in stock market. We partner with different online stock brokers and bring out their value proposition to consumers for a fair comparison.

Article Source:http://www.articlesbase.com/mortgage-articles/is-the-housing-crisis-going-to-end-anytime-soon-what-is-the-future-of-housing-industry-in-usa-946726.html

My name is D.C. Fawcett and I used to work hard as a former drycleaner. The 14 hour days; 6 day weeks were unbearable. My family never saw me and I was making everyone rich but myself. I knew that if I were to get wealthy I had to start my own company because I wasnt going to get rich working for someone else. Then I discovered foreclosure investing, and after a lot of trial and error, I perfected a step-by-step System for buying and selling houses without using my money or credit. I had very little time and no money and no experience. I outline the whole process on this CD. On this CD, Youll Discover:How YOU Can Cash In On The Subprime Mortgage Meltdown and Find Hidden Profits In Preforeclosure Properties!How easy it is to find foreclosure properties that yield HUGE profits. How to fund deals without risking your own money or credit. Why the key to success in this market is knowing how to negotiate short sales successfully.
Why The Short Sale Strategy is a technique that every Realtor, Investor, and Mortgage Broker or Loan Officer needs to have in their toolbox in order to establish a competitive advantage in todays market.
How to consistently purchase beautiful homes for 50 cents on the dollar and fixer uppers for as low as 28 cents on the dollar. Most foreclosure homes are in great shape if you know how to find em. Discover how you can generate profits of $98,000 per month and $170,000 per deal without any Cash, Credit or Experience.
Find out how to TRULY acquire Houses with No Money Down. Discover the best strategy to use in this market to make huge profits buying and selling houses even if you have no credit, no experience, or not a lot of cash. Find out what the essentials are to selling houses fast in this market … Find out how we find buyers for our properties within 7 days. And Much, Much, More…

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Why are there so many foreclosures? Why would banks, the pillars of fiscal responsibility and risk aversion, lend money to people who couldn’t afford to repay their loans? How did Wall Street manage to hide the risk and sell the subprime mortgages? How did the subprime mortgage business unravel and evolve into a worldwide liquidity crisis? What are the frauds and scams, how do they work and what should you be aware of? What is the forecast for the future and what conclusions can be drawn? You will find the answers to all of these questions and more in this book. It is an easy-to-understand and easy-to-read collection of analyses, stories and experiences about the real estate business, the mortgage business and the subprime market in particular.

User Ratings and Reviews

5 Stars Subprime Meltdown
With the current subprime meltdown taking place within the US Economy, many people are losing their homes and millions more are worried about how they are going to make their mortgage payments. In his book, Subprime Meltdown: From U.S. Crisis to Global Recession, author and real estate expert Charles Brownell addresses how the subprime mortgage was created, how it works, and what factors led to the current subprime mortgage crisis.

In 114 pages, Brownell succeeds in providing a comprehensive understanding of how a number of different sectors contributed to this crisis which has resulted in far more world wide implications. Brownell explains how the Federal Government and Congress instigated the current crisis between 1975 and 1980 when they passed legislation that forced financial institutions into the subprime market stating that it was discriminatory not to give loans to low and moderate income people. He details how the financial institutions could not afford to give loans that were considered high risk so they came up with clever ways to profit. A number of the ways that he describes were very shady and ended up costing mortgage holders much more than they thought. As well, he shows how practices of financial institutions resulted in what is known as predatory lending.

People lacking knowledge on subprime mortgages will find the book very easy to understand. Brownell provides clarity on a very confusing subject. Not only does he explain how mortgage lenders work with financial lenders to ensure the best profit for them, he also provides an account of all those hidden fees that people often don’t know about. As well, he offers solutions on how to reduce the chance of another subprime mortgage crisis from recurring. For those seeking advice on how to make sure they choose a mortgage that they can afford, helpful tips on managing your money and what to look for when choosing a mortgage are provided.

The book is a very educational read for those trying to make sense of the subprime mortgage market. Although it is about a serious situation, it is very optimistic with an important message of the need for consumer education.

Tracy Roberts, Write Field Services

5 Stars With tips on how not to be drawn into a loan that can’t be repaid
The average man on the street wouldn’t lend money to a hobo with intents on getting their money back, so why did banks do this with subprime borrowers? “Subprime Meltdown: From U.S. Liquidity Crisis to Global Recession” examines this recent crisis and what led banks to do something so irresponsible with people’s money. Tackling the problem issue by issue and revealing the bank’s motivations on these and with tips on how not to be drawn into a loan that can’t be repaid, “Subprime Meltdown” is an economic breakdown that any nonspecialist general reader can understand.

4 Stars Subprime loans
This was a good book. I do recommend it to anyone that is interested in the subprime crisis.

5 Stars A MUST Read for Existing and Future Homeowners
The book is written clearly and to the point. Explaining the complex world of subprime loans within our global economy would prove daunting for even America’s most accomplished economics scholars. Charles Brownell hits a home run by giving as a view into the seedy world of subprime mortgages – from the initial loan to the creative packaging of CDO’s on Wall Street..

A great read for existing homeowners or individuals planning to own a home in the future. The book provides a crash course education on how our loan system “really” works and how buyers can avoid fatal pitfalls along the way. Includes several helpful tips on how to avoid hidden and unnecessary finance expenses.

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