You can forget any "recovery" until this situation gets markedly better.
http://www.housingwire.com/2009/03/1...-thread-study/
http://www.housingwire.com/2009/03/1...-thread-study/
Want a stunning figure? Half of Americans now say they are only one month or less away from not being able to meet their financial obligations if they were to lose their job — just two paychecks or less. And of these, more than half — 28 percent of all Americans — say they could not survive financially for more than two weeks without their current job.
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The survey data underscores that the mortgage industry would do well to remain focused on economic fundamentals: following a job loss, 59 percent of survey respondents said they’d be somewhat or very concerned about having to file for bankruptcy, and 64 percent would be concerned about losing their home.
And evidence of the spending binge most Americans are still recovering from is evident in even the broadest sense, not just limited to those with more limited financial means. Even the “mass affluent” — those making $100,000+ in income per year, according to the MetLife study — haven’t been saving enough, with more than one-quarter (29 percent) saying that they couldn’t meet their financial obligations for more than one month following a job loss.
That’s the sort of information that should give every lender, investor and servicer pause as we think about managing a growing number of bad loans.
...
The survey data underscores that the mortgage industry would do well to remain focused on economic fundamentals: following a job loss, 59 percent of survey respondents said they’d be somewhat or very concerned about having to file for bankruptcy, and 64 percent would be concerned about losing their home.
And evidence of the spending binge most Americans are still recovering from is evident in even the broadest sense, not just limited to those with more limited financial means. Even the “mass affluent” — those making $100,000+ in income per year, according to the MetLife study — haven’t been saving enough, with more than one-quarter (29 percent) saying that they couldn’t meet their financial obligations for more than one month following a job loss.
That’s the sort of information that should give every lender, investor and servicer pause as we think about managing a growing number of bad loans.
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