[theDentist]

9% of all home loans are delinquent

And what % of all home occupants are delinquents?

Just wondering...

[Niteranger68]

“Not I” said the capitalist pig.

[C19fan]

In states like CA and FL with massive home value declines one research paper I read claims at least 25% of defaults are borrowers dumping the house on the bank because they are so much underwater not because of ability to pay.

[silverleaf]

Harry Dent (”The Great Depression Ahead”) predicted this real estate bubble burst for next year into 2011. He also predicted home values to fall to about mid-90’s levels.

So heads up for those who expected to sell in the next couple of years. Maybe now is the time.

[moose2004]

“Mortgage lenders say the flood of foreclosures has not yet crested. Highwater mark should come this fall.”

This fall? I heard two credible analysts say that forclosures would not crest until the middle of next year.

[SkyDancer]

Which means there are 91% of mortgage holders being responsible and paying their mortgage ....

[SkyPilot]

FREE STUFF!

[NavyCanDo]

We have been waiting since early May for our Refi to close. We have been told that everything looks great, and that we are locked in, and they put the blame on the underwriters because of the very large backlog. Our rate is frozen only until October, so nothng is really frozen, and as for the documents we faxed back in May, many of them have to be replaced because they are now too old. My wife spent yesterday getting those replacements faxed in. In the mean time our lives are on hold.

I have read on the web many many stories just the same. We thought it was just our company (Wells fargo), but it appears to be wide spread.

Here is a related story:

Mortgage Market Locks Up

http://globaleconomicanalysis.blogspot.com/2009/05/mortgage-market-locks-up.html

And this one:

Dear Mortgage Refinance Applicant, Expect Delays

http://globaleconomicanalysis.blogspot.com/2009/05/dear-mortgage-refinance-applicant.html

[bgill]

I’d like to know the numbers from say 5 years ago.

But, but Hussein said just the other day that he’d already fixed the economy!

[annieokie]

The good news is that that 91% are in GOOD shape. So where’s the problem.

[OB1kNOb]

Will It All Come Tumbling Down? - Karl Denninger

Excerpt:

Let's juxtapose two stories. First, from Bloomberg:

Aug. 14 (Bloomberg) -- More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank’s equity and threaten its survival.

Ok. Now how about this one?

WASHINGTON (MarketWatch) -- Delinquency rates for loans and leases at U.S. banks increased to a record 6.49% in the second quarter from 5.58% in the first quarter, the Federal Reserve announced Monday.

So let me see if I get this right.

At 5% of non-performing loans a bank is at risk of being insolvent.

But the entire banking system in The United States had its non-performing loan ratio increase from 5.58% in the first quarter to 6.49% in the second, a record, and higher than the 5% level at which the survival of a bank(ing system) is threatened with collapse.

Hmmmm.... So should we take from this that the entire US Banking System is about to collapse?

[snowsislander]

The combined percentage of loans past due and those already in foreclosure hit 13.16% during the quarter, the highest ever recorded by the MBA survey.

A combined 13.16% rate is incredible. I hope that this rate peaks soon and then enters a rapid decline.