Those with defaulting bad credit mortgages are soon to be joined by larger numbers of those considered “prime” borrowers by banks. Although much of the media focus has been on bad credit mortgages, experts are now seeing data that the overall economic crunch is starting to affect even those that were thought to be immune from mortgage disaster. Bad credit mortgages are still quite a problem for banks, but they may be hit even harder when the customers they thought they could rely on start defaulting. Numerous factors are being blamed, including high food and gas prices, as well as plummeting home values.”Those, I think, are what’s really troubling, because that’s a sign of the tough economy,” said Robert Tourigny, executive director of NeighborWorks Greater Manchester. “If you don’t have the ability to pay, it doesn’t matter what your interest rate is.Candace Gebhart, a paralegal with the housing finance authority’s Nashua office stated, “It’s doctors’ bills and credit cards. If they were on the verge before of just making ends meet, (with) the impact of $4-a-gallon heating oil or $4-a-gallon gasoline to get to and from work, they’re robbing Peter to pay Paul.”
Related reading: Bad Credit Mortgages
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