Home Mortgage Repossessions in 2009 Not As High As Estimated – Mortgage Comparison
The number of homes repossessed in 2009 is not as high as expected, despite a rise in unemployment. July through then end of September the repossession rate only rose 3%, with 11,700 homes repossessed during that time, which is less than the 12,700 earlier in the year. The number of people who are behind in their payments has also dropped.
More flexibility from mortgage lenders and a lower interest rate have enabled more people to hold onto their homes.
Michael Coogan, Director of CML said:
“We are glad to have been wrong on our previous forecast for mortgage repossessions this year. Although the economy is not out of the woods yet, we no longer expect a dramatic rise in properties being taken into possession unless interest rates rise from the low levels that most commentators now expect to persist for some time.”
New government protocols allowing repossession of a home only when every measure has been taken to keep the family in the home has been a big help in reducing repossessions.
For 2009 repossessions has dropped from the predicted 75,000 people to 65,000 and the number of people behind on their mortgage payments down from 360,000 to 195,000. This good news should continue as long as the interest rates stay down.