One of the big headaches the Obama administration faces in rescuing troubled homeowners is that the size of the problem doesn't seem to stop growing. Even as some struggling borrowers find ways to make mortgage payments again, a great deal more fall further behind. Lender Processing Services' November 2009 Mortgage Monitor Report provides two visuals to illustrate this trend. First, the six-month average deterioration ratio shows that for every mortgage that improves in status three others get worse. Although it declined from the all-time high reached last month, the ratio remains elevated and indicates that the "shadow inventory" of foreclosed homes will continue to sandbag a housing recovery for some time.
Here is another way to look at the issue: the performance of 1.7 percent of home loans improved in October, while 4.8 percent deteriorated.