Posted on 05/28/2009 8:03:44 AM PDT by central_va
NEW YORK (AP) -- An industry report shows that a record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with good credit.
The Mortgage Bankers Association said Thursday the foreclosure rate on prime fixed-rate loans doubled in the last year, and now represents the largest share of new foreclosures. Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were in the foreclosure process.
At the same time, almost half of all adjustable-rate loans to borrowers with shaky credit were past due or in foreclosure.
California, Nevada, Arizona and Florida accounted for 46 percent of new foreclosures in the country.
(Excerpt) Read more at finance.yahoo.com ...
6% of those with good credit
vs
50% of those with bad credit
Hmmm, who was it again the government forced the banks to loan money to?
Wait ‘till interests rate shoot up next year. This baby has a long way to go. Unless foreign investors step in with cheap dollars and start buying up real estate, we will be a nation of renters, the exact opposite of what libs lending policy was supposed to do.
“...we will be a nation of renters, the exact opposite of what libs lending policy was supposed to do.”
Everything these incompetents touch turns out to be a disaster...hardly a recommendation for them to take over our health care. Perhaps the GOP could start making this point in tv ads, but we don’t hear a peep from that bunch of losers.
Those are four very interesting states to sport the majority of delinquencies. Anyone think that illegals with mortgages might just fit in somewhere?
That's racist. /sarc
Kind of gives a new meaning to the term "anchor baby". Can't deport a guy with a mortgage to pay...
Actually, the Prime Market now leads the way in delinquencies. This leads me to believe there are an increasing number of people looking at their situation of owing more then there home is worth and voluntarily walking away.
I used to think poorly of those. Anymore, I don’t blame them.
Agree completely with your point -- and yet....
Unfortunately, those numbers are pretty deceptive. There are a lot of homeowners who have been in their homes for years, had high credit ratings, even saved for emergencies and the future who see the end coming but just aren't quite there yet. Their job just ended or is about to end, living on dwindling savings, not late on the mortgage yet, but know at some point soon they are going to be because there are no jobs out there at even half the pay level for them to financially recover. I know plenty of people in this circumstance.
My best friend declared bankruptcy late last year and just lost her house. She owned that house for 16 years, raised her son financially alone, had two years of savings in the back, and built and sold two businesses -- not a sit on her butt type, at all -- she's was making over $250K a year at the height of the market. But she's now in a small apartment, supporting her aging mother after her father's death, barely making the rent every month.
Expect that "6% with good credit defaulting" number to soar, soon.
.we've always been...
i.e. allodial title.
..oh, mon due, I due speak in haste, some folks have this title, guess who?
bump
Which of the policies that led to the RE crash, including CRA, have been altered? What changes now exist to prevent this same/similar situation?
Yes. At least since 1913.
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