Aug 01 2009
Ten Percent of California Home Loans in Default; Recession, Unemployment Likely to Keep it That Way
Nearly ten percent of home loans in California are in default, according to a news report in the Los Angeles Times.
Can you believe that? Let’s review it again. Of all the homes in California that have a home loan, i.e. homes with a mortgage, almost one out of every ten is in default of the conditions of the home loan, is in delinquency. That means foreclosure is right around the corner unless a miracle happens.
That means that ten percent of home loans are so far behind in their payments that they are now officially in default.
That is a staggering number, a sobering one, that makes it all the more urgent to get the economy kick-started as soon as humanly possible.
It gets worse, according to the Times, because things could get even worse if mortgage interest rates start to rise.
Are things going to get better? Unlikely.
A recent report in the San Francisco Chronicle suggested that the jobs market will not rebound until the year 2013.
Granted, that seems like the worst case scenario. There is hope all around us. All you have to do is look at the stock market and see it rise day after day. Stocks go up because people are investing money in companies, and companies hire when they have more money.
Things in California are very bleak. We should contact the Obama administration immediately to tell the Obama team that California, as one of the top ten economies in the world, needs a lot of attention and a lot of jobs.
And we need them in a hurry.
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