Scarcity of jobs puts more at risk of foreclosure
"Ultimately, the housing story, whether it is delinquencies, homes sales or housing starts, is an employment story," Jay Brinkmann, the Mortgage Bankers Association's top economist, said in a statement. "Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers."
If things don't turn around relatively soon, I wonder if mortgage lenders will take a voluntary foreclosure holiday, figuring the costs of foreclosing and attempting to resell in a bad market simply aren't worth it. After all, foreclosure is based on the value (and marketability) of the property securing the amount of the loan. With home price deflation and so many out of work (and therefore unable to buy foreclosed homes), the quality of that security to remedy delinquent mortgage debt is called into question.