Let's get to the facts. According to the numbers from Lender Processing Services homeowners aren't out of the woods by a long shot:
Homeowners who are now 90 days late grew for the 5th month in a row
30 & 60-day delinquencies were up as well
Those behind by one payment grew by 10%
Those 60 days behind were up by just over 4%
The time it takes to go from 30 days late to foreclosure say averaged out at 449 days
That last bullet is the one that sometimes I get the most sideways glances at. "You mean I can live for free in the home for almost a year and half?" Well, who knows how long it'll be but you better cherish it because getting a loan thereafter is going to be the hard part plus the bank can come after the deficiency for a long time. That means that sometime in the future, when the economy gets better, and maybe incomes begin to rise, you'll be having to figure out how to pay back that debt you owe however this time with worse credit than you probably imagined.