The dollar amount of outstanding residential loans in the U.S. continued to fall in the third quarter as more Americans engaged in "cash-in" refinancings while others lost their homes due to foreclosure.
According to figures compiled by National Mortgage News and the Quarterly Data Report, Americans owed $9.807 trillion on their home loans at Sept. 30, down slightly from $9.894 trillion at mid-year.
Housing debt peaked at $10.138 trillion at the end of 2009, according to NMN/QDR.
Some housing analysts, including Laurie Goodman of Amherst Securities, anticipate that another 11 million homes could be lost to foreclosure over the next few years unless the government improves its loan modification efforts.
The dollar amount of outstanding loans is being reduced because consumers who can afford to are refinancing and paying down balances. Also, mortgagors are defaulting on loans and entering foreclosure, taking those mortgages out of the equation. And certain real estate investors are buying homes for cash, shunning the mortgage process entirely.
