Posted on 03/05/2009 10:29:26 AM PST by BGHater
More than 1.5 million homes are seriously delinquent and close to foreclosure
More than 11% of all mortgages are either delinquent or in foreclosure,according to an industry report released Thursday.
The percentage of borrowers at least one month behind in their mortgage payments - but not in foreclosure-rose to nearly 8% during the fourth quarter of 2008, according to the National Delinquency Report from the Mortgage Bankers Association (MBA). This is the highest rate of delinquency ever recorded by the survey, which began in 1972, and reflects a record 13% jump compared to the third quarter.
"Subprime ARM loans and prime ARM loans, which include Alt-A and pay-option ARMs,continue to dominate the delinquency numbers," Jay Brinkmann, chief economist for the MBA, said in a prepared statement. "Nationwide,48% of subprime ARMs were at least one payment past due,and in Florida over 60% of subprime ARMs were at least one payment past due."
The number of homes in the foreclosure process rose to 3.3%, an increase of 0.33 percentage points from the quarter before and up 1.26 percentage points from a year earlier. That represents nearly 1.5 million homes at risk of sliding all the way through foreclosure.
Combined, the number of delinquencies and loans in foreclosure came to 11.18%, the highest ever recorded by the MBA. Delaying tactics
And even though the number of loans entering into the foreclosure process remained steady, the number of loans stuck there was particularly high,according to Brinkmann.
"This is mainly attributable to various state and local moratoria on foreclosure sales, the Fannie Mae and Freddie Mac halt on foreclosure sales announced in late November, a general reluctance by servicers to proceed with evictions in the last few weeks of December and a slowing down caused by an overburdened legal process in some areas," he said.
(Excerpt) Read more at money.cnn.com ...
I wonder how many were delinquent a year ago? Five years ago? The world has always had a certain amount of dead beats.
That what happens when you give loans to people who only took nice place to live free for a few years. The only downside is those stupid people who really bought the American dream had to pay over inflated price for their house. Barney doesn’t care about you.
Government should try to to stay out private citizens lives and only serve to bailout banks and corporations that hire large lobbying firms...
Well, duh...with BO’s merry band of Socialists telling people that they need to be two payments behind to get bailed out, why is anyone surprised that the rates of non-payment are going up? Honestly, is there any common sense in this administration at all? The answer of course is “no” because they are all university liberals and Clinton retreads who have never run anything but their mouths.
That’s up from 6.99 percent in the third quarter of 2008 and 5.82 percent in the fourth quarter of 2007, a new record high and quarter-to-quarter jump.
The delinquency rate doesn’t include loans already in foreclosure, which increased 33 basis points to 3.30 percent at the end of the fourth quarter, up from 2.04 percent a year ago.
That means a staggering 11.18 percent (seasonally adjusted) of mortgages outstanding are either late or in foreclosure.
The percentages of loans 60 days and 90 days or more past due, as well as loans in foreclosure, all set new record highs during the quarter.
Question:
Where are all these people going after they move out of their homes? To apartments? These days you have to have good credit to rent don’t you? Any if they can’t pay their mortgage how do they pay for an apartment?
A lot of them are illegals going home.
Most subprimes going into foreclosure were issued to illegal aliens or the landlords of illegal alien dorm homes.
That’s right, MOST. Not all, but most were issued to illegals dwellings. One of the dirty little secrets of the mortgage collapse and the subsequent economy’s collapse is that the powers that be don’t want this known less it endangers their open borders/amnesty agenda.
Do you think Obama’s (or Bush’s) plan for amnesty would stand a chance if the word gets out that the current mess started with loans to illegals (illegal loans)?
Hmm. Sounds like a whole lot of community reinvesting has been going on.
Why should we pay our mortgages? The Obamassiah promised to pay them for us since housing is a right! How dare those greedy banks want their money back. Just because they put up the money for the house does not mean they own it - the Obamassiah said so!
/sarc
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