Delinquencies On Prime Mortgages DOUBLE!

The Business Insider ^ | 7/1/09

[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."

[gidget7]

If only he were! He is not stupid, he knows exactly what he is doing, and he likes the result! Never forget who is assisting him in this raping of capitalism.

[hope]

That’s part of it...The other shoe that may be dropping is job losses.

[dancusa]

Wait until Crap and Scam hits the fan. Tent cities will soon out number occupied homes by 2011. Food shortages and blackouts are coming because of this.

[murphE]

Glad I live in an apt. Huge one-bedroom in a suburban neighborhood and I only pay $340 a month.

I couldn't rent a garage for that on Long Island. I spend almost that much on groceries every week.

[FromLori]

Agree did you watch the celente video about that?

http://www.youtube.com/watch?v=RIPSrKbYp0U

[hope]

Ha! If you think it’s getting bad, just wait till 0 removes the mortgage tax deduction!

[PGalt]

The bulk of these socialists were in place long before Barry burst on the scene, and they’ll be in place long after he leaves.

[PGalt]

It takes a collective to destroy a limited constitutional republic.

[gidget7]

Agreed, only he provides them with a base that cannot be criticized or questioned. Other than that, the entire Clinton admin. is back. I expect them to recruit Reno and Albreight any day. But Clinton was not protected by the media, nor was his wife. zero is.

[PGalt]

Agreed, only he provides them with a base that cannot be criticized or questioned.

Absolutely. 100% agreement.

[ex-Texan]

This news report misses the BIG Picture . . .

One in Four Mortgage Defaults is Intentional: Economist

In other words: People who have the money to pay are deciding not to pay. A large percentage are suffering from ripped-off-buyers price-tag remorse. Others know people who just walked away and decided to do the same thing. Many people got the idea when they saw political figures default intentionally. You know all the names. They have been posted here on FR for months (at least the Dems have been).

When people make strategic decisions to default on contracts -- It does not signal an end to the recession.

Yada, Yada, Yada. Time to wake up, people. We are about to embark on tragic times. Obama wants to play FDR. So be it.

The only thing that will save us is: (1) Amnesty for all illegal aliens living in the U.S., (2) Martial Law in the when swine flu returns with a higher kill ratio (3) Foreign troops in America because our troops are in 138 foreign nations doing 'peace keeping' or (4) Another full blown World War now that we have shipped all our manufacturing overseas.

We are so screwed . . . LOL LOL !

[FromLori]

Totally agree.

[ex-Texan]

Lori -- We are both correct. Our obviously FAKE Two Party System has failed miserably. Everything has been taken over by Wall Street. Greedy WS shills demand $ Trillions more and traitors are running the government.

Your recommended Gerald Celente video pretty much spells out what we are in for:

Gerald Celente Blasts Obama and 'Cap & Trade' Profiteering Lunacy

[stephenjohnbanker]

Obama has got to be stopped, or this nightmare will indeed happen.

[M. Espinola]

Soon, the results of Obama's phase II crash, even for the moronic sheep who voted for Obamaitis.

[TigerLikesRooster]

Hmm.. as usual, people started to game the government policy. Happens all the time.

[EVO X]

Walking away requires you to pay the LOSS of the sale as INCOME!!!!!!

Not through 2012 on your principle residence.

IRS faq

[bolta_lightnin]

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

Me too.

[combat_boots]

“Walking away requires you to pay the LOSS of the sale as INCOME!!!!!!

Not through 2012 on your principle residence.”

So, what are possible scenarios deriving from that number, 2012, then?

That 0bama & Posse commit-US intend to...

1) pay up on certain mortgages that fit his cult base homies’ profiles?
2) foreclose and bulldoze ‘less’ desirable properties, due to their inability to be ‘green’? (That could include mansions, a la Hearst Castle, you know)
3) force homeowners to pay protection in order to keep their homes?

[combat_boots]

In addition, of course, is that 2012 is the end of the 4 year term. 0bama could ask folks to reelect him in order to extend the current situation, or, leave the mess, should the IRS code go negative in the administration, and leave the mess to ‘blame the Republican.’