Mortgage Delinquencies Accelerating

Saturday, May 31, 2008 | 12:30 PM

The mortgage crisis is bad and getting worse. The latest evidence suggests that any bottom in real estate is some ways off in the future:

"Newly delinquent mortgage borrowers outnumbered people who caught up on their overdue payments by two to one last month, a sign that nationwide efforts to help homeowners avoid default may be failing.

In April, 73,880 homeowners with privately insured mortgages fell more than 60 days late on payments, compared with 39,584 who got back on track, a report today from the Washington-based Mortgage Insurance Companies of America said. Mortgage insurers pay lenders when homeowners default and foreclosures fail to cover costs.

Foreclosure filings surged 65 percent and bank seizures more than doubled in April compared with a year earlier as rates on adjustable mortgages increased, according to RealtyTrac Inc. Lawmakers and Federal Reserve officials are trying to ease the worst U.S. housing slump since the Great Depression through tax rebates, expanded federal mortgage insurance and other programs."

According to RealtyTrac, one in every 519 U.S. households is in some stage of the foreclosure process.

There is some good news amongst the dire foreclosure data: In April, a 183,000 homeowners were able to work out new borrowing terms with lenders and avoid foreclosure filings. Thats a record, according to the Hope Now Alliance.

However, that month's 54% "cure ratio'' among defaulted mortgages compares unfavorably with 80% a year earlier, and 87% in March 2008. This is mostly due to the accelerating foreclosure filings in April -- more than 243,000 properties, a 65% YoY increase (RealtyTrac).

As long as defaults are occurring faster than workouts, the supply of foreclosure properties and REOs remain at uncomfortably high levels for some time to come . . .

>
Foreclosure By State, April 08
Foreclosure_by_state_april_08

via Realty Trac


>

Source:
New Overdue Home Loans Swamp Effort to Fix Defaults
Josh P. Hamilton and Bob Ivry 
Bloomberg,  May 30 2008
http://www.bloomberg.com/apps/news?pid=20601110&sid=arGQ_rKO2ai8

Saturday, May 31, 2008 | 12:30 PM | Permalink | Comments (7) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00e552ac09e18834

Listed below are links to weblogs that reference Mortgage Delinquencies Accelerating:

Comments

Millionaire buddy just walked away from home at posh ski resort after having it on the market for nearly two years and seeing value drop from $400k above loan to about equal to loan value. Holding cost $75k/year. Gave it back to the bank and hooked them up with buyer willing to assume the 5% range loan. Lender? Wamu. "It might mess up your credit for awhile"... "I don't need credit. I don't credit"

Do you think he's the only one like that out there? I'm thinkin probably not.

Posted by: Bob A | May 31, 2008 1:09:01 PM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner