Posted on 07/01/2009 6:54:50 PM PDT by FromLori
Delinquency rates on prime mortgages, the least risky category, more than doubled in the first quarter from a year earlier, according to statistics released yesterday by the government.
Prime mortgages 60 days or more past due climbed to 2.9 percent of such loans through March 31. At the same point last year, 60 day deliquencies were just 1.1 percent of all prime loans.
Two thirds of all mortgages in the US are prime mortgages, so any percentage increase in deliquencies represents a huge absolute number of deliquent mortgages.
So here are the absolute numbers: 661,914 prime mortgages were at least 60 days delinquent in the first quarter, a jump from 250,986 a year earlier.
Delinquency is a predictor of foreclosure in the future. And with house prices still falling--nationally, they're now down 30% from the peak--the recovery rates will be far lower and losses by lenders far steeper.
Prime mortgage deliquencies are now accelerating at a faster rate than any other residential mortgage loan category, faster than subprime and faster than Alt-A. (Of course, that's because these other categories have already fallen so far that prime is just now catching up.)
Also, the attempts to modify mortgages to keep people in their homes isn't working out so well.
Redefault rates are near 50% after Fannie/Freddie loan modifications. Of course Fannie and Freddie can grant bigger loan mods (and probably will), but taxpayers will have to eat the cost.
Private loan modifications are redefaulting at a 58.1% rate 12 months after modification . The best reaction to this dire news came from the brilliant investment advisor and blogger Michael Shedlock: "Can those people redeafulting can afford ANY payment? Even if they can the incentives to walk away are enormous."
(Excerpt) Read more at businessinsider.com ...
Market up on better than expected disaster.
Lots of Market Manipulation that is why
How many can’t pay, as opposed to people who can afford to pay, but choose not to on a house that will not be worth what they owe in the forseeable future? Many people who are upside down with no chance of selling have chosen to simply “walk away”.
Predictable ping...
Glad I live in an apt. Huge one-bedroom in a suburban neighborhood and I only pay $340 a month.
All you folks who told me that this problem was only subprime, and I told you it wasn’t... told you so.
Right on Obama's schedule.
Now he has Aerospace and health care to destroy.
Did he destroy farming yet?
Sorry, so much destruction to track and he moves fast! ;)
So much destruction to accomplish and so little time to accomplish it.
Only slightly off topic:
So, are the foreclosed, empty, ‘blighted houses’ in cities to be bulldozed en masse under Waxman-Markey? Would such actions be applicable based on a percentage of empty homes in a neighborhood—if the owners cannot afford to upgrade the houses to whatever the ‘house czar’ or some such person would decide are appropriate ‘green’ standards?
See:
“June 15, 2009
It’s The Latest Thing: Indestructure Spending”
“In fact, Youngstown, Ohio has been pursuing a...plan for years, hoping to bulldoze large portions of the city in an effort to have citizens live in more efficient, government-approved neighborhoods.
This will no doubt surprise you as it did us, but apparently people are fairly unenthused about having their neighborhoods bulldozed. These people are oddly unaware of just how unhappy and blighted they are living in their lifelong homes and tight-knit, if less populated, communities.”
http://planetmoron.typepad.com/planet_moron/2009/06/its-the-latest-thing-indestructure-spending.html
Another article on the same line as my previous post:
“US cities may have to be bulldozed in order to survive”
“Dozens of US cities may have entire neighbourhoods bulldozed as part of drastic “shrink to survive” proposals being considered by the Obama administration to tackle economic decline.”
Pretty cheap...Personally, if I had to ever live in an apartment again like I did many years ago, I'd commit mass murder.
Why not just forgive their entire mortgage and be done with it once and for all. Then extend that to all of us...pay off every mortgage in America. Think of the capital unleashed if we weren't saddled with mortgage payments. We could all go on massive spending sprees and really kick-start the economy.
This is not a surprise. With unemployment still growing, the number of people who can pay their mortgages (of all kinds) is shrinking.
Duh.
And that’s whats doing it now...Compounded by the fact that nearly everything people buy, just keeps going up in price incrementally.
Or maybe Zero’s credit card policies ... or both.
Part of the looney lefts plan they want people in large urban areas
I suppose it will be easier to control them that way
http://www.freerepublic.com/focus/news/2258267/posts
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