The Real Deal Miami

Second wave of mortgage defaults near

August 04, 2008 08:01AM

As the number of people defaulting on mortgages with weak credit levels off, a second, larger wave of mortgage defaults might be on the way. More homeowners with good credit are falling behind on payments. The percentage of alternative-A mortgages in arrears quadrupled to 12 percent in April, compared to last year, and delinquencies among prime loans doubled to 2.7 percent. The housing bill signed by President Bush last week aims to help struggling borrowers refinance.