Mortgage Problems Lead to Auto Loan Issues

No matter how you look at it, the subprime mortgage mess is spilling over into the economy every where you look. The auto loan market is a perfect example, as they seem to be taking one of the biggest hits from the losses.

With more people not paying their mortgages you are running into them now not paying their auto loans as well. In fact, the numbers of late payments or seriously delinquent payments have both jumped drastically over the past year. In January, the share of securitized auto loans at least 60 days late on their payments had jumped 44% over the previous year.

The number of seriously delinquent auto loans had risen 4.03% - topping 4% for the first time in over ten years. Experts say that these numbers are simply reflective of a society that cannot pay their bills any longer. For years the auto loan financers and the mortgage companies have been giving people credit that really should not have it.

They say that with the economic slowdowns and everything seemingly happening at once, we almost cannot expect those people to pay their bills that should not have been given the loans in the first place. Many people say that it is the fault of the auto loan companies for extending credit where it should not have been, and the car dealers for pushing people into cars that they really could not afford. The same can be said for the real estate market.

The worst part they say is that there is truly no end in site. Until mortgages can be paid without issue except for a very small number of people, auto loans are not likely to see an increase in payments either.



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