Foreclosure Stats

From Michigan's Gaylord Herald-Times we find this article titled The foreclosure crisis by the numbers that outlines some of the real issues people are facing. The article summarizes a survey of 60,000 homeowners by the Homeownership Preservation Foundation that have some pretty eye-popping numbers. Let's take a look at some of the stats -

• 32 percent experience a job loss

• 25 percent experience a health crisis

• 85 percent have already missed one mortgage payment

• 50 percent have already missed two payments

• 43 percent of American households spend more than they earn

• Most homeowners have no savings or available credit, and may have already refinanced two or three times.

And a little more from the article itself -

According to statistics published by ForeclosureHelpandHope.org, nationally 1 out of every 200 homes will be foreclosed upon, and 250,000 new families enter into foreclosure every three months. As the real estate market slows, the price of homes drops, as well as home values. One foreclosure in an area can result in as much as an additional $220,000 in reduced property value and home equity for other residents of the specific area. People with adjustable rate mortgages may find their mortgage rate adjusting higher which, coupled with a decrease in home value, all but eliminates refinancing as a viable option.

...

Surveys have also shown that 60 percent of homeowners do not fully understand the terms and details of their mortgage, nor are they aware that mortgage lenders can offer services to individuals who are having difficulties with their mortgage.

So approximately 60% of owners do not understand the their mortgages. That means approximately 30 million of the 49 million mortgages are not understood. Wonder how many of these are not the 30-year fixed loans?