9% Of Homeowners Are Late With Bills Or In Foreclosure, Study Says

9% Of Homeowners Are Late With Bills Or In Foreclosure, Study Says

www.usatoday.com

WASHINGTON — An industry group says a record 9.2% of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of June, as damage from the housing crisis continued to mount.
The latest quarterly snapshot by the Mortgage Bankers Association on Friday broke records for late payments, homes entering the foreclosure process and for the inventory of loans in foreclosure.

The percentage of loans at least 30 days past due or in foreclosure was up from 8.8% in the January-March quarter, and up from 6.5% a year earlier.

(visit the link for the full news article)

Hey, but not to worry! Freddie and Fannie will still be getting bailed out with your tax-payer dollars!

Those of you who still have a job, that is.

Also, REMEMBER!---According to the gov pie-chart guys and numbers manipulators, the economy is STILL GROWING.

And folks like our incoming POTUS, John McInsane have told us all that it is all psychological...Everything is going great. Nothing to see here. Keep toiling for your bread crumbs serfs, we have to keep the Elite in lap of luxury, and that includes the fraudulent lenders.

www.usatoday.com
(visit the link for the full news article)

I am still trying to digest this one, out, first we take care of the corrupted corporations and while stepping all over the consumers.

Now the car industry is also asking congress for a bail out because McCain kind of gave them the idea that he will support it.

You are rich got money problems the government will give you a bail out at the expenses of the slaves of America the hard working tax payer.

[edit on 6-9-2008 by marg6043]

reply to post by DimensionalDetective


So I guess that means 91% of home owners are NOT late with their payments, let's look at the glass half full for once! Unless of course this helps you cope with your BDS, then by all means whine away!

And FYI, if it wasn't for the greed of many during the housing boom, the number wouldn't be that high.

How accurate are these numbers really? The way a lot of people on here talk, they themselves and no one they know are dealing with any of this right now.

Which is kind of ironic. Two people I know who own homes are in the process of losing them Then there's those of us begging and borrowing to keep an apartment. Sad times ahead, I'm thinking.

reply to post by TheRooster


I think this will give you a better picture and this was only in one month July

Taking the unemployment rate of the last quarter I can only imagine those numbers has gotten worst.

Foreclosures Up 55 Percent: 272,171 Filings In July Alone

one in every 464 U.S. households received a foreclosure filing in July, the firm said. Bank repossessions (REOs) rose 184 percent year-over-year. Default notices were up 53 percent, and auction notices rose 11 percent.

One in every 64 households Cape Coral-Fort Myers, Florida, registered the highest foreclosure rate.

Nevada led the country with its foreclosure rate in July, as one in every 106 households received a foreclosure filing.

In California, one in every 182 properties received a foreclosure filing. Florida was third, with one in every 186, while Arizona's rate was one in every 195 properties.

Other states with foreclosure rates among the top 10 were Ohio, Georgia, Michigan, Colorado, Utah and Virginia.

www.reuters.com...

Originally posted by marg6043
reply to post by TheRooster

 

I think this will give you a better picture and this was only in one month July

Taking the unemployment rate of the last quarter I can only imagine those numbers has gotten worst.

Foreclosures Up 55 Percent: 272,171 Filings In July Alone

one in every 464 U.S. households received a foreclosure filing in July, the firm said. Bank repossessions (REOs) rose 184 percent year-over-year. Default notices were up 53 percent, and auction notices rose 11 percent.

One in every 64 households Cape Coral-Fort Myers, Florida, registered the highest foreclosure rate.

Nevada led the country with its foreclosure rate in July, as one in every 106 households received a foreclosure filing.

In California, one in every 182 properties received a foreclosure filing. Florida was third, with one in every 186, while Arizona's rate was one in every 195 properties.

Other states with foreclosure rates among the top 10 were Ohio, Georgia, Michigan, Colorado, Utah and Virginia.

www.reuters.com...

Marg, I live in Nevada, I'm well aware of the foreclosure market. I have three friends that have lost homes in the last year. What the numbers don't tell you is WHY. I have a client that foreclosed on 17 properties, over 5 million dollars worth of realestate she should have NEVER been able to get loans for. During the boom middle class people used the real estate market to speculate and accumulate wealth. Not very smart!

All three of my friends had ablsolutley no business speculating in the RE market. These are individuals earning a modest income (approx $60k a year) but were able to get loans for 2nd and 3rd homes. Most either lied about their ability to afford the mortgage, or the brokers lied on their behalf to get commissions. Since I own a business, I was asked by one of my friends to doctor up a w2 reflecting his wife worked for me and that she made $xyz a year. I told him he was insane and asked him where the hell he got this BS idea from, he told me his broker asked him if he knew anyone who owned a business that could do this for him, he had done it in the past and it worked. For the record I didn't do it but he was able to get the mortgage and the house anyway, only to lose his other house when the bubble burst.

You and many can blame the administration all you want, the root cause is greed! We need to own our failures as much as we own our achievments.

Thanks DD for the great information.


I would say that based on my experience in the industry the figure is much higher than 9%. Maybe 9% are already in foreclosure, but the percentages of people who have at least one 30 day late on their mortgage is astonishing.


My guess would be 20-30% or worse. Just my own estimation.

OK this may sound dumb, but if Freddie and Fannie get bailed out, does this inspire confidence for the home owners on the verge of foreclosing on thier home?
What I mean is if a corporation gets "Helped" by our government, and the very people making these big corps MONEY won't be helped out, then whos to say the homeowners won't say "F@ck it" and walk away?

reply to post by TheRooster




It is a mixture of many different factors that have caused the housing bust.

Greedy irresponsible lenders who pushed forward absurd loan programs that never should have been available to anyone. Ridiculously lowered standards for approval, high DTI, sketchy income or no income verification at all, 100% loans for people with FICO scores in the 500's.

Also a seriously over inflated home value market perpetrated by realtors and greedy investors wanting to turn and burn homes for profit. Jacked up appraisals, falsified income (I had one guy send me fake W2's that he printed from his home computer) untrained and uneducated loan officers who were pushed to break the law.

The single biggest factor in the foreclosure nightmare - overzealous home buyers who wanted that bigger house and that bigger lawn without preparing for the resonsibility of owning a home and going way beyond their means. The mortgage lenders gave these people just enough rope to hang themselves.

Since most of these people put little to no money down when they bought the home, they have no reservations with abandoning the mortgage and walking away. A great percentage of these foreclosures are people who are angry that the inflated value on their house is now lower then what they owe.

They simply walk away and let the rest of the tax payers clean up the mess. And we are yet to see the worst of it.

reply to post by BlackOps719


Thats exactly what I think. Do you think the books by Robert K. "Rich Dad, Poor Dad" and the rest of the " no money down" books inspired people to take advantage of system? If I were to do what they say in their books 2-5 years ago I would be UPSIDE DOWN and Sh1ting my britches right now.

reply to post by DimensionalDetective


The bailout will either cause the economy (not just the stock market) will crash.......or, we will seel the debt to foreign investors....look out then......New Zealand, ready for me to become a citizen?

reply to post by BlackOps719


Exactly!!!!! and the folks who engineered the ability and made it possible made millions.....It would be great if we could change it, but the banking industry controls Congress.....

reply to post by BlackOps719


Right you are BO, so why on earth are we being asked (forced) to bail them out? Any mortgage company, borker, or loan officer found to have engaged in fraud to push scrupulous loans through the process should be prosecuted and stripped of their license for life.

Since most of these people put little to no money down when they bought the home, they have no reservations with abandoning the mortgage and walking away. A great percentage of these foreclosures are people who are angry that the inflated value on their house is now lower then what they owe.



Similiar issue with commercial properties. According to Gerald Celente, the next big shoe (other than credit crisis) is commerical property foreclosure.....02c

Most of the lenders who dealt heavily in designer loans and risky sub prime loans are no longer in operation. Over 300 closed their doors since the muck started hitting the fan in February 07. I watched it first hand from the inside.

The loan officers who relied on taking advantage of poor credit borrowers and the ones who used questionable tactics to make a living are all out of the business now as well, which is great for those of us who have always done things the right way.

I can honestly say that every loan I have ever done has always showed a net tangible benefit to the borrower, if I couldnt close a loan with full documentation and if it didnt show a significant savings or benefit for the client, I simply would not do it. That is why those of us who did business in a professional and up front manner are still going strong and the rest are selling insurance.

There is no more sub prime anymore, there is no such thing. The industry is so heavily regulated right now any files that are not 100% clean are turned down on the spot. The ability to repay must be documented and proven, there are no more stated income loans. Loan officer licensing is going to a national system in Dec 08. Here in NC we have been ahead of the industry for years, LO's have always been required to be trained and licensed by the state. One bad decision can cost you your license for good, as it should be.

What concerns me more than Fannie Mae and Freddie Mac going kaput is the number of pay option ARM's and interest only loans that are scheduled to reset over the next two years. The default statistics will sky rocket because most of the people in these types of loans bought a house that was more expensive than they can now qualify for, and when the rate resets they will be unable to refinance into an affordable payment once their payment explodes.

We are nowhere near out of the woods yet. And this time it will not be smaller companies closing down, from here on out you will be seeing major banks and goliath lenders going bankrupt. It is going to get worse before it gets better.

For those who may not know what a stated income loan is, let me illustrate.


Bank Officer - "So Bob, how much money do you make per year?"

Bob - "Oh about $500,000"

Bank Officer - " Do you have any documentation to verify this amount?"

Bob - "Nope"

Bank Officer - "Congratulations Bob, you are approved for a $700,000 home loan!"



To me this always seemed like the stupidest, most irresponsible way to lend money I had ever seen, but that is pretty much how it worked,

And now the dumbasses have the nerve to sit and wonder how and why the whole house of cards has fallen to the ground...ha!!

[edit on 9/6/08 by BlackOps719]