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 ...
Most of these people essentially bought a “Call” option on increasing real estate prices that just happened to include a place to stay, a better bet than merely renting, but not good at all if a bunch of benthic filter feeding politicians end up milking it like a cow to the detriment of the producing class...
Just think about it.
If you are unemployed, you get benefits, but those will not pay the mortgage. You might have savings, but that gets exhausted after a few months.
Most recessions don't last long enough to impact housing this hard. This recession started with housing and continues to pummel it over and over again, making recovery very, very difficult.
Unless you believe in massive, deep, tax cuts to put real money in people's pockets....then unemployment will stop, the economy will grow and housing will stabilize.....it will still take about 2 years to work itself out, but it is the ONLY solution.
President Obama and the liberals are doing NOTHING to help matters. They are focused on liberal issues like healthcare, global warming, unions, etc. Even the side-effects of their agenda pursuit (like the GM/Chrysler bailout/bankruptcy) create more instability in the markets.
And that is looking at Obama's policies in the nicest way!
“...extend that to all of us...pay off every mortgage in America.”
It would probably cost less to do that than to fund BO’s insane bailouts that only benefit Goldman Sachs and GE.
I went the RV route - the ultimate bug-out bag.
Walking away requires you to pay the LOSS of the sale as INCOME!!!!!!
30 year mortgages were not common until the FHA of the Great Depression. Why not offer longer terms simply on the same loan balance? 40 or 50 years?
The rules for bailout were: If you were %5 percent, and no more, up-side-down, then assistance was available from the feds. The story I read earlier stated the number went up to %25 up-side-down. This will allow us to pay for the ‘real’ dummies homes,
Let me be the first to say it. Obmaa’s fault!
You bet...
In this environment, if ya have mortgage, car payments, family, etc, and lose your job...Your done.
Regardless of unemployment benefits.
For who?
Amen. Now let’s see how long it is before someone tries to blame this on the poor folks.
parsy, who thinks we’re supposed to be ONE nation under God.
I had not seen that thread.
Tell me, Lori, that you are familiar with Bob....He has the best short video rants. He’s going to bust a gasket someday, but he is OK.
http://drinkingwithbob.com/rants.html
You're the 1st and only to say it, Salvation..."Obmaa's fault" that is. :) but I get the message...this one IS Obama's fault. This lightweight-socialist, this propagandists-created puppet is clueless.
Hear Ye! Hear Ye! Hear Ye!
FReeper Convention Ticket Drawing!!
All NEW monthlies of $10 or more submitted by July 31 that include the words “FReeper Convention Ticket Drawing” in the comment section will be included in a drawing for a Freeper Convention ticket!! The winner can use the ticket for himself or give it away to another FReeper!!
Hope to see you in DC!!
45 posted on Wednesday, July 01, 2009 12:41:31 PM by Jim Robinson (Follow me on Twitter: http://twitter.com/jimrobfr)
You got that right.
Yes lmao I have seen a few of his videos he cracks me up
Holy cow! There is nothing even close to that anywhere in my neck of the woods!
Of course it isn’t. Subprimes are not the only ones losing their jobs! And with zero destroying the prospects of business, A LOT of them are not finding job replacements.
It would probably be cheaper than what he is doing!
Erik, I was telling people this was way bigger than any of them were willing to concieve years ago, and was laughed at routinely when I told them this mess was going to be measured in Trillions.
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