Nearly 8% of all mortgage holders in the U.S. are at a serious risk of losing their homes and 14% are at some stage of delinquency, according to the Mortgage Bankers Association. That means that nearly 4.3 million homeowners may need to short sale.  These homeowners are either in foreclosure or are at least 3 payments behind.  If they can’t modify quick they may need a trained real estate professional, like you.

According to the same report, more than 10 percent of mortgage holders missed a payment in the first quarter of the year.  Last year, the same time period, was only 9.1 percent.

This year’s number is a record high. The percentage increase could be due to seasonal issues.  An indisputably positive trend has been a drop in the number of new defaults from 3.8 to 3.5 percent.

The housing market is not going to be on the mend for a while despite a few positive indicators.  REO shadow inventory, and the potential of millions of homes not curing their default or finding a positive workout solution means distressed property prices will stay with us for a long time.  Distressed properties flushing the market, mean lower values across the board.

The Chief Economist of Moody’s predicts that housing values will drop at least another 5% nationally this year, tapping out next spring (2011).  The whole economy will continue to experience a repair and growth stalemate until house prices stop falling.

Of the homeowners in default or in over-leveraged properties, 49% would consider walking away as a strategic default, according to a recent on-line survey by Trulia and RealtyTrac.  Many of tried, but failed to modify their mortgage.

The Government’s prevention programs have been largely ineffective.  According to recent reports, only 25% or approximately 1.2 million homeowners who started one of the Making Home Affordable programs last year have received a permanent modification.  Of those that enrolled, there is a trial phase drop-out rate of 23%.

So, again….8% of U.S. mortgage holders who “need” to sell whether or not they “want” to sell have no choice but to short sale if they don’t want to go down the foreclosure road.