In a new report in the New York Times (subscription required), credit counselors are finding that mortgage debt is becoming more common in people seeking bankruptcy.
From the article:
“Mortgage debt is coming out as much more significant than we expected,” Ms. Keating said. “Pull this all together with the other unsecured debt people have, and this is really problematic.” The foundation, she added, will intensify its attention to mortgage counseling over the next year, partly in anticipation of more demand from consumers whose home loans are growing more burdensome.
The foundation has been surveying its members to gauge the effects of a federal bankruptcy law signed last year, which, among other things, eliminated some benefits of personal bankruptcy filing.