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Job losses to fuel foreclosures

Mortgage bankers warn next year will be worse

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A record one in 10 home loans were delinquent or in foreclosure at the end of September, some 2.2 million homes are expected to enter the foreclosure process in 2008, and with the economy deteriorating the outlook for next year is worse, the Mortgage Bankers Association said today. Until recently, excess inventory, speculation and lax underwriting by lenders have been the prime drivers of foreclosures in states like California and Florida, the MBA said. States like Michigan and Ohio were hardest hit by unemployment and population loss. Now, economic fundamentals are deteriorating in California and Florida, with both states seeing massive layoffs. In the last year, Florida led the nation in job losses with 156,200, and California shed 101,300 jobs, the MBA said. The Department of Labor reported today that employers laid off 533,000 workers in November alone -- the most in 34 years -- sending unemployment to a 15-year high at 6.7 percent. Some past recessions have sparked h...