Housing Market Recovery Dependent On Reduction Of “Oversupply Of Distressed Homes” (Video)
10 09 2011Comments : Leave a Comment »
Tags: Bank-Owned, Distressed, Foreclosures, Home Sales, Homes, Videos
Categories : Bank-Owned, Defaults, Delinquencies, Financing, Foreclosures, Housing Market, Investors, Mortgage Industry, Purchases
U.S. Housing Market Continues To “Struggle Mightily” As Litigation And Mortgage Delinquencies, Foreclosures Keep Downward Pressure On Prices (Video)
23 08 2011Nicolas Retsinas, director emeritus of the Joint Center for Housing Studies at Harvard University, discusses the U.S. housing market. Retsinas speaks with Erik Schatzker and Michael McKee on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)
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Tags: Foreclosures, Homeowners, Housing Market, Prices, Values, Videos
Categories : Bank-Owned, Defaults, Delinquencies, Federal Government, Financing, Home Values, Housing Market, Statistics, Videos
Fannie Mae, Freddie Mac And FHA Now Own Half Of All Foreclosed Properties And Obama Administration Is Seeking Proposals On How Best To Shrink Inventory
10 08 2011
The Federal Housing Finance Agency, which regulates Fannie and Freddie, will issue the formal "request for information" with the administration to solicit proposals that shrink the glut of foreclosed properties weighing on the residential market.
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Tags: Bank-Owned, Fannie Mae, FHA, Foreclosures, Freddie Mac, HUD
Categories : Bank-Owned, Defaults, Delinquencies, Fannie Mae, Federal Government, FHA, Foreclosures, Freddie Mac, Housing Market, HUD, Statistics
Housing Market Update: Signs Of A “Stabilization In Home Prices” Can Be Seen In Latest Statistics But Homebuyers Should Still Look For Value
6 06 2011
http://renovationlendinginstitute.com/
- Mortgage rates are at 4.55% for the week ending June 2, according to Freddie Mac, near 50-year lows
- The ratio of home prices to income is now 20.9% lower than the 15-year average through 2010
- They are 12.5% lower than the 1989-2004 average, making homes very affordable historically
- The current glut of homes has created a buyer’s market with about 15 million vacant homes in the U.S. last year
- This is 3.1 million more than normal
- But home prices might be entering a stabilization period
- Moody’s Analytics predicts that the number of distressed sales will begin to fall in 2013
- New home building is at a virtual standstill, so the supply overhang isn’t likely to get much worse
- “Household formation”—the number of new households each year—is on the rise, and could start reducing the housing glut in coming years
For more: http://online.wsj.com/article/SB10001424052702304563104576361522020024248.html
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Tags: Home Prices, Home Value, Housing Market, Statistics, Values
Categories : 203k, Defaults, Delinquencies, Economic Statistics, Foreclosures, Housing Market, Mortgage Industry, Purchases, Statistics, The 203k Guy
Home Prices Make New “Post Bubble” Lows As “Four-Year” Supply Of “Foreclosure Inventory” May Further Erode Home Values; Poor Condition Of REO’s Make Renovation Financing Critical
1 06 2011http://renovationlendinginstitute.com/
- S&P Case-Schiller reported that house prices have hit a new post-bubble low, down almost a third from their 2006 peak
- Pending home sales, according to the National Association of Realtors, fell by 27% in April 2011 from previous year
- This represented an 11.6 percent fall for the month
- Many buyers are swamped by negative equity in their current house and those who are not are reluctant to commit their own capital to a falling market
- Tighter underwriting standards would force current homeowners to pay existing lender to cover the equity shortfall and then pay a larger down-payment for the new house
- Continued sales of foreclosed homes is one of the prime forces driving prices lower
- Banks are more willing to cut prices to get a sale done than homeowners
- Many foreclosures are in poor condition, requiring further discounts to entice buyers
- The foreclosure system is overwhelmed, even despite a drop in new foreclosure starts and delinquencies
- Lawsuits over improper foreclosure procedures has slowed the process with banks deliberately holding properties back so as not to further erode prices
- At the current rate of sales it will take more than four years for banks to sell off their existing inventory of foreclosed or seriously delinquent houses
- More than 40 percent of delinquent mortgages have been delinquent for more than a year, according to Lender Processing Services
For more: http://blogs.reuters.com/jamessaft/2011/05/31/u-s-housings-sinking-feeling/
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Tags: Bank-Owned, Delinquencies, Foreclosures, Home Prices, Home Value, Statistics
Categories : Bank-Owned, Defaults, Delinquencies, Foreclosures, Homes, Housing Market, Mortgage Industry, Purchases, Realtors, Statistics
Combined REO Inventory Of Fannie Mae, Freddie Mac And FHA Declines Slightly To 287,184 Units At End Of March 2011 But Pace Of Foreclosuures AND REO Sales Is Accelerating
23 05 2011
The combined REO inventory for Fannie, Freddie and the FHA1 decreased to 287,184 at the end of Q1 2011, from a record 295,307 units at the end of Q4 as shown in the second graph. The pace of foreclosures is picking up, but so is the pace of REO sales. Freddie Mac noted REO sales were at record levels in Q1 where the pace of REO acquisitions will increase in the remainder of 2011, in part due to the resumption of foreclosure activity by servicers, as well as the transition of many seriously delinquent loans to REO. REO disposition reached record levels in 1Q 2011 with over 30,000 homes sold. Fannie Mae also sold a record 62,814 REO in Q1, up from 38,095 in Q1 2010 and 185,744 for all of 2010. So Fannie and Freddie sold over 90,000 REO in Q1, and their combined inventory only declined by 16,185. They are foreclosing at record levels, but they are finally selling REOs faster than they acquire them.
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Tags: Bank-Owned, Charts, Fannie Mae, FHA, FHA Foreclosures, Foreclosures, Freddie Mac, Graphs, REO, Statistics
Categories : Bank-Owned, Defaults, Delinquencies, Fannie Mae, FHA, Freddie Mac, HUD, Mortgage Industry, REO's
The “Looming” Shadow Inventory In USA’s Top Ten “Larger Counties” Will Add A “Glut Of Homes” Listed For Sale As 98% Of Delinquent Homeowners Will Be Forced Into Foreclosure Or Short Sales; 30% Of “Seriously Delinquent Homeowners” Have Not Made A Payment In 24 Months
6 05 2011
http://renovationlendinginstitute.com/
| Ten Larger Counties Distressed Mortgage Percentages – 3d Quarter 2010 | ||||||
| COUNTY | Active Loan Count | 90+ Days Delinquent | % Delinquent | Defaults | % Defaults | Distressed Total |
|---|---|---|---|---|---|---|
| Miami-Dade | 366,775 | 26,735 | 7.29% | 64,708 | 17.64% | 24.9% |
| Broward (Ft. Lauderdale) | 328,721 | 21,939 | 6.67% | 44,251 | 13.46% | 20.1% |
| Orange (Orlando) | 204,944 | 13,020 | 6.35% | 24,839 | 12.12% | 18.5% |
| Clark (Las Vegas) | 360,192 | 32,932 | 9.14% | 32,388 | 8.99% | 18.1% |
| Riverside (CA) | 368,432 | 32,622 | 8.85% | 17,965 | 4.88% | 13.7% |
| Prince George’s (MD) | 148,228 | 13,800 | 9.31% | 6,367 | 4.30% | 13.6% |
| San Bernardino (CA) | 315,992 | 27,051 | 8.56% | 14,980 | 4.74% | 13.3% |
| San Joaquin (Stockton, CA) | 105,519 | 8,887 | 8.42% | 5,021 | 4.76% | 13.2% |
| Kern (Bakersfield, CA) | 114,247 | 8,031 | 7.03% | 4,929 | 4.31% | 11.3% |
| Maricopa (Phoenix) | 715,944 | 43,164 | 6.03% | 31,807 | 4.44% | 10.5% |
Source: CoreLogic
- The ten large counties with the highest total percentage of first liens which were either seriously delinquent or had been placed into default
- These are properties which had not yet been foreclosed and repossessed
- Historical data suggests that 98% of these properties will eventually be forced onto the market as either foreclosures or short sales
- The total number of seriously delinquent and defaulted first liens in these ten counties is somewhat higher because database does not include all first liens
- This represents the so-called “shadow inventory” of properties that will come onto the market in the not-too-distant future and will add to the glut of MLS listings
- In February 2011, according to Lender Processing Services, an incredible 30% of seriously delinquent homeowners in default had not made a mortgage payment in at least 24 months
- In January 2009, that number was only 8%
For more: http://seekingalpha.com/article/268087-shadow-inventory-threatens-all-major-metro-housing-markets
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Tags: Defaults, Delinquencies, MLS, REOS, Short Sales, Shortsales
Categories : Bank-Owned, Defaults, Delinquencies, Foreclosures, Home Sales, Mortgage Industry
“Short Sale Or Foreclosure”: Homeowners Will See FICO Scores Fall To 570-595 Range With Either Strategy; Credit Scores Will Take Up To 7 Years To Increase Back To Previous Levels
25 04 2011http://renovationlendinginstitute.com/
- FICO will not be higher if homeowners choose “short sale” over foreclosures
- Mortgage delinquency data from the nation’s three major credit bureaus was used to make this decision
- Potential borrowers with short-sales will have FICO scores in the 575-to-595 range at one credit bureau
- This is the same as having a foreclosure on their credit report
- FICO scores will be either in the 570-to-590 range or the 620-to-640 range at the two other credit bureaus
- Short sales and foreclosures will remain on credit reports for three-to-seven year credit restoration
For more: http://www.housingwire.com/2011/04/22/short-sales-and-foreclosures-equally-degrade-fico-scores
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Tags: Credit Bureaus, Deed In Lieu, FICO Scores, FICO's, Foreclosures, Short Sales
Categories : Credit Reports, Defaults, Delinquencies, Financing, Foreclosures, Mortgage Industry, Short Sales, Underwriting
Home Prices In California Decline 4.9% Statewide In Past Twelve Months To March 2011 On Heavy Distressed Home Sales And Loss Of Federal Tax Credit
21 04 2011http://renovationlendinginstitute.com/
- The statewide median price of an existing, single-family detached home sold in California increased 5.4% in March compared with February to $286,010
- But prices declined 4.9% compared with March 2010’s median price of $300,900
- The decline in prices year over year is attributed to an increase in distressed sales
- It is clear that prices and sales in 2010 benefitted from the federal home buyer tax credit
- The pace of sales for the first three months of this year is in line expectations for all of 2011, according to C.A.R.
March 2011 County Sales and Price Activity
Regional and Condo Sales Data Not Seasonally Adjusted
| March-11 | Median Price of Existing Single-Family Homes | ||||||
| State/Region/County | Mar-11 | Feb-11 | Mar-10 | MTM% Chg | YTY% Chg | ||
| CA SFH (SAAR) | $286,010 | $271,320 | $300,900 | r | 5.4% | -4.9% | |
| CA Condo/Townhomes | $232,130 | $236,360 | $263,310 | r | -1.8% | -11.8% | |
| Los Angeles Metropolitan Area | $272,600 | $266,830 | $280,160 | 2.2% | -2.7% | ||
| Inland Empire | $172,730 | $174,040 | $177,910 | -0.8% | -2.9% | ||
| S.F. Bay Area | $487,060 | $444,020 | $498,980 | r | 9.7% | -2.4% | |
| S.F. Bay Area | |||||||
| Alameda | $480,250 | $458,060 | $476,560 | 4.8% | 0.8% | ||
| Contra-Costa (Central County) | $567,310 | $516,670 | $587,690 | 9.8% | -3.5% | ||
| Marin | $826,700 | $632,580 | $790,620 | 30.7% | 4.6% | ||
| Napa | $332,610 | $354,760 | $351,560 | -6.2% | -5.4% | ||
| San Francisco | $679,770 | $606,560 | $720,390 | 12.1% | -5.6% | ||
| San Mateo | $695,000 | $623,000 | $800,000 | 11.6% | -13.1% | ||
| Santa Clara | $561,500 | $525,250 | $590,000 | 6.9% | -4.8% | ||
| Solano | $193,480 | $191,790 | $211,540 | 0.9% | -8.5% | ||
| Sonoma | $325,910 | $315,340 | $359,050 | 3.4% | -9.2% | ||
| Southern California | |||||||
| Los Angeles | $282,170 | $286,220 | $290,000 | r | -1.4% | -2.7% | |
| Orange County | $523,610 | $496,540 | $550,420 | r | 5.5% | -4.9% | |
| Riverside County | $201,520 | $203,630 | $201,100 | -1.0% | 0.2% | ||
| San Bernardino | $130,690 | $131,470 | $137,590 | -0.6% | -5.0% | ||
| San Diego | $383,620 | $367,770 | $393,600 | 4.3% | -2.5% | ||
| Ventura | $443,920 | $389,650 | $444,890 | 13.9% | -0.2% | ||
| Central Coast | |||||||
| Monterey | $260,000 | $239,950 | $245,000 | 8.4% | 6.1% | ||
| San Luis Obispo | $362,700 | $328,750 | $377,680 | r | 10.3% | -4.0% | |
| Santa Barbara | $422,730 | $380,000 | $381,820 | r | 11.2% | 10.7% | |
| Santa Cruz | $475,950 | $451,000 | $525,000 | 5.5% | -9.3% | ||
| Central Valley | |||||||
| Fresno | $138,120 | $141,360 | $150,960 | -2.3% | -8.5% | ||
| Kern (Bakersfield) | $129,900 | $125,000 | $136,000 | 3.9% | -4.5% | ||
| Kings County | $137,270 | $154,000 | $154,290 | -10.9% | -11.0% | ||
| Madera | $133,530 | $149,230 | $146,000 | -10.5% | -8.5% | ||
| Merced | $115,290 | $117,270 | $108,080 | -1.7% | 6.7% | ||
| Placer County | $253,750 | $269,670 | $292,210 | -5.9% | -13.2% | ||
| Sacramento | $168,250 | $168,800 | $183,330 | -0.3% | -8.2% | ||
| San Benito | $247,500 | $285,000 | $275,610 | -13.2% | -10.2% | ||
| Tulare | $121,950 | $120,340 | $145,140 | 1.3% | -16.0% | ||
| Other Counties in California | |||||||
| Amador | $170,000 | $200,000 | $186,000 | -15.0% | -8.6% | ||
| Butte County | $222,370 | $190,000 | $250,000 | 17.0% | -11.1% | ||
| Humboldt | $250,000 | $238,890 | $270,650 | 4.7% | -7.6% | ||
| Lake County | $94,170 | $123,330 | $155,000 | -23.6% | -39.2% | ||
| Mariposa And Tuolumne | $154,440 | $187,500 | $204,690 | -17.6% | -24.5% | ||
| Mendocino | $192,500 | $200,000 | $295,000 | -3.8% | -34.7% | ||
| Shasta | $154,810 | $162,110 | $175,500 | -4.5% | -11.8% | ||
| Siskiyou County | $112,500 | $140,000 | $150,000 | -19.6% | -25.0% | ||
| Tehama | $125,000 | $83,330 | $132,860 | 50.0% | -5.9% | ||
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Tags: California, Economy, Home Prices, Home Sales, Statistics
Categories : Bank-Owned, Condominiums, Defaults, Federal Government, Home Sales, Homes, Mortgage Industry, Purchases, Statistics
FHA Mortgage Underwriting: Analysis Of FHA Loan Servicing Records Finds That Requiring Larger Down Payments Does Not Correlate With Fewer Defaults; High LTV’s With Higher FICO Scores Are Best Performing Loans
20 04 2011
http://renovationlendinginstitute.com/
-
FHA uses both downpayment and FICO scores to allocate credit assistance
-
Downpayment and FICO scores when used together are a much better predictor of loan performance than just one of those components alone
-
FHA insured loans with LTV above 95% and a FICO score above 580 perform better than loans with LTV below 95% and a FICO score below 580
-
FHA loans with an LTV above 95% and a FICO score below 580 perform significantly worse than all other groups
FHA Single Family Insured Loan Claim Rates
Relative Experience by Loan-to-Value and Credit Score Values1
Ratios of Each Combination’s Claim Rate
to that of the Lowest Risk Cell2
| Loan-to-ValueRatioRanges |
Credit Score Ranges3 |
||||
|
500-579 |
580-619 |
620-679 |
680-850 |
||
| Up to 90% |
2.6 |
2.5 |
1.9 |
1.0 |
|
| 90.1 – 95% |
5.9 |
4.7 |
3.8 |
1.7 |
|
| Above 95% |
8.2 |
5.6 |
3.5 |
1.5 |
|
For more: http://portal.hud.gov/hudportal/HUD?src=/press/testimonies/2011/2011-04-14
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Tags: Defaults, FHA, FHA Financing, FHA Loans, Foreclosures
Categories : Credit Reports, Defaults, Delinquencies, Federal Government, FHA, FICO's, Financing, Mortgage Industry, Mortgage Insurance, Underwriting
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