This follow an early post where BofA is waiting on additional instructions for the home owners that have been canceled by HAMP.
Total household debt fell by $77 billion during the three months ending in June, but nearly half of that decline stemmed from bank charge-offs of residential mortgages, credit cards and other consumer loans, according to Capital Economics Group. In a recent report, the London-based economic research consultancy found that this isn't necessarily a new development. Household debt has fallen every quarter since the beginning of 2008, leaving it $473 billion below the peak, which is the equivalent of reducing debt at every household by $4,200.
Also, look at the stat on credit cards. Most of the debt are credit card companies writing off bad debt.
In 2009, outstanding credit card debt dropped by about $93.2 billion compared with the previous year, according to a report from CardHub.com, a credit card comparison website. This might sound like good news, but the reality is that the majority of the drop -- $81.6 billion -- is due to Americans defaulting on their debt.
As take the these people hits to their credit history, they probaby have a more difficult time purchasing a home. Again this will suppress the number of buyers who can qualify for a loan.
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