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Delinquencies On Prime Mortgages DOUBLE!
The Business Insider ^ | 7/1/09

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 ...


TOPICS: Business/Economy; Government
KEYWORDS: delinquencies; economy; foreclosures; mortgage
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To: Hugin

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...


21 posted on 07/01/2009 7:31:48 PM PDT by Axenolith (Government blows, and that which governs least, blows least...)
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To: dragnet2
And that’s whats doing it now...Compounded by the fact that nearly everything people buy, just keeps going up in price incrementally.

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!

22 posted on 07/01/2009 7:33:20 PM PDT by Erik Latranyi (Too many conservatives urge retreat when the war of politics doesn't go their way.)
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To: ProtectOurFreedom

“...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.


23 posted on 07/01/2009 7:33:43 PM PDT by kittymyrib
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To: dragnet2
Pretty cheap...Personally, if I had to ever live in an apartment again like I did many years ago, I'd commit mass murder.

I went the RV route - the ultimate bug-out bag.

24 posted on 07/01/2009 7:35:48 PM PDT by elkfersupper (Member of the Original Defiant Class)
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To: FromLori

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?


25 posted on 07/01/2009 7:36:52 PM PDT by keving (We get the government we vote for)
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To: FromLori

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,


26 posted on 07/01/2009 7:44:02 PM PDT by devane617 (Republicans first strategy should be taking over the MSM. Without it we are doomed.)
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To: FromLori

Let me be the first to say it. Obmaa’s fault!


27 posted on 07/01/2009 7:45:24 PM PDT by Salvation (With God all things are possible.)
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To: Erik Latranyi
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.

You bet...

In this environment, if ya have mortgage, car payments, family, etc, and lose your job...Your done.

Regardless of unemployment benefits.

28 posted on 07/01/2009 7:52:09 PM PDT by dragnet2
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To: keving
Walking away requires you to pay the LOSS of the sale as INCOME!

For who?

29 posted on 07/01/2009 7:53:58 PM PDT by dragnet2
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To: HamiltonJay

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.


30 posted on 07/01/2009 7:57:37 PM PDT by parsifal ("Knock and ye shall receive!" (The Bible, somewhere.))
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To: FromLori

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


31 posted on 07/01/2009 7:58:00 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Fili et Spiritus Sancti.)
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To: Salvation
Let me be the first to say it. Obmaa’s fault!

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.

32 posted on 07/01/2009 8:12:03 PM PDT by PGalt
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To: FromLori

Hear Ye! Hear Ye! Hear Ye!

NEW MONTHLY CHALLENGE

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!!

https://secure.freerep ublic.com/donate/pledge

45 posted on Wednesday, July 01, 2009 12:41:31 PM by Jim Robinson (Follow me on Twitter: http://twitter.com/jimrobfr)

33 posted on 07/01/2009 8:12:11 PM PDT by glock rocks (... just tryin to make do...)
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To: jwalsh07
Market up on better than expected disaster.

You got that right.

34 posted on 07/01/2009 8:14:36 PM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: combat_boots

Yes lmao I have seen a few of his videos he cracks me up


35 posted on 07/01/2009 8:17:04 PM PDT by FromLori (FromLori)
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To: Extremely Extreme Extremist

Holy cow! There is nothing even close to that anywhere in my neck of the woods!


36 posted on 07/01/2009 8:29:06 PM PDT by gidget7 (Duncan Hunter-Valley Forge Republican!)
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To: HamiltonJay

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.


37 posted on 07/01/2009 8:30:50 PM PDT by gidget7 (Duncan Hunter-Valley Forge Republican!)
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To: ProtectOurFreedom

It would probably be cheaper than what he is doing!


38 posted on 07/01/2009 8:32:59 PM PDT by gidget7 (Duncan Hunter-Valley Forge Republican!)
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To: Erik Latranyi

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.


39 posted on 07/01/2009 8:35:46 PM PDT by HamiltonJay
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To: Erik Latranyi
Yeah, my photography business is going well, and I was thinking about getting a studio this fall, but with credit tightening, I'm keeping expenses at a minimum and just doing on site work.
40 posted on 07/01/2009 8:35:55 PM PDT by Richard Kimball (We're all criminals. They just haven't figured out what some of us have done yet.)
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