I read this on mortgage news today, and this numbers are kind of scary, so many properties will definitely have an impact in the housing industry and the overall economy of our nation.Here is the article7.2 Million Loans Behind on Payments, One Million REOsMore than 7.2 million mortgage loans are now behind on payments and one million properties are now in real estate-owned status, according to the January 2010 Mortgage Monitor report from Lender Processing Services in Jacksonville, Fla. Home delinquency rates have surpassed 10%. The total foreclosure inventory rate is 3.2%, and the total non-current rate, which combines foreclosures and delinquencies, sits at 13.3%. The percent of "new" serious delinquencies is 4.64%, higher than any other year analyzed for the same period. Of loans that were current as of Dec. 31, 2008, by Dec. 2009 there were 2.3 million new loans that were considered seriously delinquent. Prime loans, including agency, non-agency and jumbo, have experienced deterioration at a worse pace on a relative basis than subprime, FHA and all loans as a whole. Within the prime category, loans with current unpaid principal balances between $417,000 and $600,000 have performed the worse, LPS said. States with most non-current loans include Florida, Nevada, Mississippi, Arizona, Georgia, California, Indiana, Michigan, Illinois and Ohio. States with fewest non-current loans are North Dakota, South Dakota, Alaska, Wyoming, Montana, Nebraska, Vermont, Colorado, Oregon and Washington.
I really think the banks are banking on either modifying those loans or short selling them.
I've noticed an increase in January of REOs hitting the market here, but that's inventory that i think has been in the works since October. I'm signed up with foreclosure radar and use it as a tool to guage my area as well as a way to get listings. The data is showing me that most of the trustee sales are either being delayed due to some agreement or a bankruptcy. From what i read i think banks are holding off a bit in hopes of stabilizing the market, but prices are dropping regardless, so it must be that they are doing so to save money. Banks are banks I'm sure they figured out a way to save money.
Likewise with commercial 1.3 trillion in loans resetting or ballooning this year? Banks are very open to just keep the clients making the payment as they have absolutely no hopes of refinancing as they're either upside down or their numbers don't make sense. Commercial (office) to take biggest hit. Best performers in my area are industrial followed by multi-family. Hotels taking a beating.
I'm seeing something similar (though less severe because of the climate) in a condo complex nearby. We have two short sale listings in there, and both are vacant because the sellers just up and left. They knew they were severely upside down in the loans, they didn't want to sit and wait for the bank to foreclose, so they left. We are getting the listings because we are persuing sellers and telling them how much better off they will be if they complete a short sale rather than let it go to foreclosure. We're learning that a huge number of units in the complex are vacant. Thankfully the abandoned ones we've seen are in pretty good shape because they're well-built and the climate is mild.
Megan Zavieh
Mission Valley Real Estate Company
Fremont, California www.mvreco.com
HAFA is just a way to reduced foreclosures, and increase short sales, at the end of the day, the home owner looses the home, it will sell for less and in some properties, the owner might leave the house vacant, then no one will do a the basic home preservations like winterizing, cut the grass, and other maintenance, most insurance companies will drop the policies, houses will get citations, etc, which the home owner wont pay and will create title issues stopping the foreclosure sale and finally ending in a foreclosure, then the house will be in the market 1 to 2 years later with mold, vandalized, other damages, and will sell for even less, dropping the values around, and meanwhile creating a eye sore in the neighborhood.
I walk into a short sale this week, that was vacant and not winterized the main level and second floor were in good condition and the buyer was very interested, the basement had 2 feet of frozen water and mold everywhere even the ceiling. The house is listed for $100K in a low $200K's neighborhood.
For all the agents doing short sales out there , here is some information on the HAFA proram that is starting on April 5 , 2010 , this will be huge help in reducing the properties that will be in default .
I can see if this tread continues that they will come up with some sort of manditory payment reduction across the board. I can also see them allowing for partial payments during the period of Foreclosure to stall the process. This is a MAJOR Problem and if the Politicans dont deal with it soon the markets will deal with it and it will result in more banks closing and more job loss.
Banks know that this is a problem, but they don't want to release the inventory due to fears of market dropping again like 2008. My buyers see this news and they want to wait to buy when the price starts falling. Holding off REO inventory to stablize the market may back fire. Also, the tax credit is expiring so the pool of buyers will become even smaller.
Comments
I've noticed an increase in January of REOs hitting the market here, but that's inventory that i think has been in the works since October. I'm signed up with foreclosure radar and use it as a tool to guage my area as well as a way to get listings. The data is showing me that most of the trustee sales are either being delayed due to some agreement or a bankruptcy. From what i read i think banks are holding off a bit in hopes of stabilizing the market, but prices are dropping regardless, so it must be that they are doing so to save money. Banks are banks I'm sure they figured out a way to save money.
Likewise with commercial 1.3 trillion in loans resetting or ballooning this year? Banks are very open to just keep the clients making the payment as they have absolutely no hopes of refinancing as they're either upside down or their numbers don't make sense. Commercial (office) to take biggest hit. Best performers in my area are industrial followed by multi-family. Hotels taking a beating.
Megan Zavieh
Mission Valley Real Estate Company
Fremont, California
www.mvreco.com
I walk into a short sale this week, that was vacant and not winterized the main level and second floor were in good condition and the buyer was very interested, the basement had 2 feet of frozen water and mold everywhere even the ceiling. The house is listed for $100K in a low $200K's neighborhood.
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