Thursday, June 5, 2008

Over One Million Homes In Foreclosure

A grim first quarter report from the Mortgage Bankers Association's shows the housing crisis is getting worse. Mortgage delinquencies rose in the first quarter to 6.35%.

From CNN:

The Mortgage Bankers Association's first quarter report showed that a record 2.5% of all home loans being serviced by its members are now in foreclosure, which works out to about 1.1 million homes. That's up from the 2% of loans, or about 938,000 homes, that were in foreclosure at the end of 2007.

The report also showed that 448,000 homes, or about 1% of loans being serviced, began the foreclosure process during the first quarter. That's up from about 382,000 homes, or 0.83%, that entered foreclosure in the last three months of 2007.

This marks the sixth straight quarter in which a record percentage of loans went into foreclosure. The trend has led to widespread declines in home prices, as well as huge losses for banks and other financial firms that issued or invested in the loans.

Read full article >>

The problems in California and Florida are extraordinary and they are the main drivers of the national trend. The quarterly rate of foreclosure starts on subprime ARM loans in California was 9.24 percent. This rate, combined with Florida’s rate of 8.25 percent, drove up the national average foreclosure start rate to the point where 43 states were below the national average of 6.32 percent. California saw a total of approximately 109,000 foreclosure starts and Florida 77,000. The next highest states were Texas, Michigan and Ohio with between 24,000 and 20,000 each.

Here's a direct link to latest MBA National Delinquency Survey.


13 comments: said...

Wow, unfortunately all you can say is wow, and if your not one of the people that got in over their heads and aren't losing your home, give your self a pat on the shoulder. I currently am a co founder on a website along with I am an account executive for a wholesale mortgage lender in Orange county, I see these foreclosures every day. It's quite disturbing, as it is a buyers market the buyers doing the purchasing are of course buying a new one and letting their current home go to foreclosure. When are we ever going to learn .

James said...

Just found this article and sound interesting...thanks..

Anonymous said...

Lets get real here guys, no one is LOSING THEIR HOME, this is bull. There is no one that has paid over 6 months of mortgage that is being foreclosed on. Almost every single one that I have seen (and I have been in the market to buy a foreclosure for 6 months now) is a refinance.

Hre is typical scenario in CA:
They refinanced the house for 20% more than its worth at the time, STUPID LITTLE BACK GAVE"EM THE MONEY. Then they said, sc#@$w you, I am not even making one monthly payment. They took the cash and bought a nicer, bigger place with banks money and let the house go into foreclosure.

I have been to so many short sales where the owner has a brand new (not even plated yet) car in the driveway and is claiming hardship to the bank and is not making payments and is living free for another whole year like that.

Anonymous said...

Every homeowner’s story is different. Some people were truly misled by industry professionals. Most new and existing homebuyers are not well versed in the mortgage do's and don'ts. When they are told by a professional that they qualify to purchase their dream home, they go for it. Not thinking of the future consequences. They figure that their representatives know best; when the truth is that the "professionals" shouldn't have presented properties that were out of their price range. They recommended house based on credit score, not true financials. (coming in July)

Anonymous said...

I have been refinancing or trying to with countrywide my bank since march 26 , I have done everithing they asked me for . Close all my credit cards becauase is a debt consollidation loan , I was supose to sign last thursday, but something happenneed , now tehy said thaha thr loan where to plano texas to be authorized can any body gime and advise on whwt to do

Michelle. said...

Countrywide has significantly contributed to a collapse of the national economy by way of reducing consumer confidence. Greedy, sleazy, and unlawful: They deserve everything that's coming at them – don’t allow powerful corporation heads escape our legal system.

They are one of the nominees in Corporate Accountability International's 2008 Corporate Hall of Shame for their predatory mortgage lending to elderly and non-English speaking borrowers, among their other abuses.

Foreclosure Doctor Online said...

What a great post! Definitely shows how foreclosure is a growing problem in our economy. Hard to believe that over a million homes now are in foreclosure. People need to seek advice on what to do when faced with foreclosure.

The cup is half full of something I don't like said...

I worked in sub-prime in the 90s and my wife worked for a credit consolidation company for awhile. Way too many borrowers lived their credit to the maximum. They left no room for the little bumps in the road of life. These are frequently the same people, when we had to foreclose on them, blamed us for lending them too much money. It wasn't their responsibility that they had a new lexus and a two week family vacation in Europe and a mortgage worth more than their home. It is because of these people that people who tried to behave responsibly are suffering.

meshil said...

A California and Florida must reduce the main drivers due which the subprime loans will also be reduced and at the same time the foreclouser will come down.

Addiction Recovery New Mexico

STLRealtor said...

We have had tons of foreclosures in St. Louis. Its crazy when I go to a realtor meeting, everyone is saying "oh yeah I am getting involved in foreclosure listings now" said...

How Can You Save Your Property From Foreclosure

Mortgage insurance companies as we all know are helping banks and homeowners to avoid foreclosures.
Surprisingly as it sounds these mortgage insurance companies will even put some of their own money to help homeowners to make the payments for their homes.

1.Why do mortgage insurance companies willing to put their own money?
2.How can we know if we're insured by these insurance companies?
3.Why these big corporations help banks and homeowners?
4.Will the insurance companies help the homeowners also if they're not insured?

Lots of homeowners don't have a lot of knowledge about their loans. Some people don't even know their own Interest rate.
So I will assume that most of you out there will not understand the term pmi (private mortgage insurance).

What is pmi?
pmi is a policy which the bank act as the beneficiary and the borrower makes a monthly payment for the insurance of course.
The pmi(private mortgage insurance) protects the banks in bad times like today, when a lot of homes are foreclosing or selling through a short sale and the banks are loosing a lot of money.

When do you pay pmi?
normally if you buy a house or refinance your existing house there will be a very important issue that can also prevent you from qualifying, and that is the ltv (loan to value).
If you take a loan with more then 80% ltv (loan to value) then you will probably will pay pmi.
Some of us will remember great times that we could loan more then 80% of the value of the home but then we also had to take a second mortgage loan or an equity Line of credit loan of 10% or even 20%, but those days are long over.
Today banks will want you to put more down so you're not going to let go from the house and also so the banks will have a pmi(private mortgage insurance)to be protected.

I know that it sounds that the insurance companies are just there to protect the banks.
That's not true they're helping homeowners too, as I said before that they will help you with payments and they will also partner with credit counseling agencies to help homeowners with their payments.
Insurance companies will try contacting you through phone or they will be mailing you letters to refer you to different websites so you can get an idea what to do next with your home and save your home from a foreclosure.

Mainly what you really need to do if you have any problem with your house and you're negative with your payments first you should contact your lender.
Your lender will guide you what to do next.

Anonymous said...

i don't understand why people arn't saving their own homes! I went on the internet and found a book that walked me through the entire process, it cost me $12.00 bucks and i got everything i needed. people are just walking away from their houses. i think that companies like this would rather keep the homeowner in the house than take it from them. Anyway, i have seen on the news about these mortgage rescue scams, people can just get the info on the internet if they want to. i got that book because i didn't have the time to do the research! but it helped me.

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