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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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 2011

http://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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Categories : Credit Reports, Defaults, Delinquencies, Financing, Foreclosures, Mortgage Industry, Short Sales, Underwriting

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

 

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  • 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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Categories : Credit Reports, Defaults, Delinquencies, Federal Government, FHA, FICO's, Financing, Mortgage Industry, Mortgage Insurance, Underwriting

“Interactive Map” Shows High Foreclosure Rates In Arizona, California And Nevada Counties As Compared To National Foreclosure Rates

18 04 2011

The fallout from the recession has cut deeply into the housing security, employment and income of many Americans. But some parts of the country are clearly faring better than others. The interactive map below shows  foreclosure rates by county. The darker the color the higher the rate of foreclosures.

CLICK ON MAP TO USE "INTERACTIVE" FORECLOSURE RATE BY COUNTY


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Categories : Delinquencies, Foreclosures, Statistics, Surveys

“Poorly Maintained Bank-Owned Homes” Have “Destroyed Home Values In Minority Neighborhoods” Disproportionately According To Report On “Lender Discrimination In Treatment Of Foreclosed Homes” By National Fair Housing Alliance (NFHA)

14 04 2011

CLICK ON "NEIGHBORHOOD" TO VIEW REPORT


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Categories : Asset Managers, Bank-Owned, Defaults, Delinquencies, Economic Statistics, Federal Government, FHA, Foreclosures, Housing Market, HUD, Mortgage Industry, Purchases, Realtors, REO Insider, REO's, Reports

Nevada, Arizona And California Had Nation’s Highest Foreclosure Rates In 1st Quarter 2011 As Foreclosure Filings Drop Due To “Robo-Signing Scandal”; Severe Mortgage Delinquencies Increase

14 04 2011

 

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  • Nevada, Arizona and California were 1-2-3 in the 1st quarter and March 2011 as the states with the highest foreclosure rates
  • The worst metropolitan area remains Las Vegas, where one of every 31 homes had a foreclosure filing during the quarter, about six times the national norm
  • Modesto, Calif. (one in 46), Stockton, Calif. (one in 47), Vallejo. Calif., and Phoenix (both one in 48) filled out the top five
  • The foreclosure crisis seems to be easing as foreclosure notices filed during the first three months of 2011 fell 27% compared with 2010
  • Only 681,000 properties (1 out 191)  received a notice of default, a scheduled auction or a foreclosure sale
  • Nationally, 215,046 borrowers lost their homes, down 17% year-over-year, a 3-year low
  • Sales of existing and new homes were very weak and home prices are still sliding
  • However, the foreclosure improvement has been artificial, fueled by banks reacting to the “robo-signing” scandal
  • The banks have cut back on filings until they can clean up their procedures
  • It is estimated that without the cutback there would have been 900,000 filings during the quarter instead of 681,000
  • This would have resulted in 280,000 to 300,000 bank repossessions instead of 215,000
  • And the banks are modifying fewer loans to make them more affordable
  • Hope Now, a coalition of servicers, community groups and mortgage investors, reported only 87,000 loans in February were modified, compared with 110,000 in December 2010
  • The one bright spot is the month-over-month drops in both new foreclosures and in the number of 60 days late payments
  • But 90-day or greater delinquencies is increasing, with these borrowers falling 527 days past due, on average
  • In New York and New Jersey it is taking more than 800 days from notice of default to a sheriff’s sale

For more:  http://finance.yahoo.com/news/Foreclosures-continue-to-cnnm-3667179016.html?x=0&sec=topStories&pos=1&asset=&ccode=


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Categories : Defaults, Delinquencies, Fannie Mae, Federal Government, FHA, Financing, Foreclosures, Freddie Mac, Housing Market, Mortgage Industry

“Renovation Lending Institute” Housing Market Update: HUD Reports That Home Sales And Housing Prices Remain Weak And Struggling “To Regain Stable Footing” In March 2011

4 04 2011

 

“There’s no question that this month’s figures show a troubling dip in home sales and housing prices,” said HUD Assistant Secretary Raphael Bostic.

“…these statistics clearly show that housing markets across the country continue to struggle to regain stable footing. We must remain steadfast in our efforts to support homeowners and communities in ways to help advance market stabilization and a transition towards health.”

  • Housing market remains fragile as data through February paint a mixed picture of recovery. Home prices remain weak under continued strain from foreclosures and distressed home sales, according to CoreLogic data now available in the Housing Scorecard. Mortgage delinquencies continued a downward trend compared to early 2010 and foreclosure starts and completions remain below peak. However, as lenders review internal procedures related to foreclosure processing, many foreclosure actions have been delayed. The decline is likely to be temporary as lenders eventually revise and resubmit foreclosure paperwork in the coming months.

For more:  http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2011/HUDNo.11-050


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Categories : Defaults, Delinquencies, Economic Statistics, Federal Government, FHA, Home Sales, Homes, Housing Market, HUD, Mortgage Industry, Purchases

California Housing Market In Feb 2011: 56% Of Total Home Sales Are “Distressed” With REO Properties At 33%; Median Sales Price For REO Properties Is $199,000, Almost 50% Less Than “Non-Distressed” Home Prices

25 03 2011

Distressed housing market data:

  • The total share of all distressed property types sold statewide increased in February to 56 percent
  • This wa up from 54 percent in January and up from 55 percent in February 2010
  • The total share of REO (real estate-owned) sales was 33 percent in February, up from 32 percent in December
  • This was down from 36 percent in February 2010
  • The total share of short sales increased to 23 percent in February, up from 22 percent in January
  • This was up from 19 percent in February 2010
  • The statewide median price of non-distressed properties sold in February was $370,000
  • This was $95,000 or 34.5 percent higher than the short sale median price of $275,000 recorded in February
  • The February2011 REO median price was $199,900 or 53% of median price of non-distressed homes

For more:  http://www.car.org/newsstand/newsreleases/febpending/


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Categories : California, Defaults, Delinquencies, Federal Government, Financing, Foreclosures, Home Sales, Mortgage Industry, Realtors, The 203k Guy

“Short Sale Or Foreclosure”: Homeowners Who Short Sale With No Default On Loan Face The Least Negative Impact On Credit; Must Wait 3-7 Year With Foreclosures And Defaults

24 03 2011

 

Short sale with FHA Loan

  • Can purchase right away with no mortgage default
  • 3 year wait if in default at the closing
  • Reduced wait if the borrower has re-established good credit and can show extenuating circumstances

Short Sale With Fannie Mae Loan

  • 2 year wait if the borrower puts 20 % down
  • 4 year wait if the borrower puts between 10% to 20% down
  • 7 year wait if the borrower puts less than 10% down
  • 2 year wait if the borrower can show extenuating circumstances and puts more than 10% down

Short Sale with Freddie Mac Loan

  • 4 year wait before being able to get a loan
  • 2 year wait if the borrower can show extenuating circumstances

Foreclosure with an FHA Loan

  • 3 year wait before being able to get a loan
  • Reduced wait if the borrower can show extenuating circumstances and re-establishes good credit

Foreclosure with a Fannie Mae Loan

  • 7 year wait from the completed foreclosure sale date
  • 3 year wait if the borrower can show extenuating circumstances. Additional underwriting requirements apply for 4 years after a 3 year waiting period.
  • 7 year wait for a 2nd home, cash out re-financing, or an investment property

Foreclosure with a Freddie Mac Loan

  • 5 year wait from the completed foreclosure sale date
  • 3 year wait if the borrower can show extenuating circumstances

** As a side note a deed in lieu of foreclosure follows the same guidelines as FHA’s foreclosure policy, the same as Fannie Mae and Freddie Macs short sale policy.

For more:  http://massrealestatenews.com/buying-a-home-after-short-sale-or-foreclosure/?goback=%2Egde_87042_member_47792412


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Categories : Bank-Owned, Credit Reports, Defaults, Delinquencies, Fannie Mae, Federal Government, FHA, Financing, Foreclosures, Freddie Mac, Homes, The 203k Guy

Total # Of US Mortgages In Foreclosure “Pre-Sale Inventory” Increased 7.4% In Past Year Ending February 28, 2011 To 2,196,000 Loans (4.15% Of Total Loans)

21 03 2011

Lender Processing Services released a “first look” at February 2011 month-end mortgage performance statistics derived from its loan-level database of nearly 40 million mortgage loans.

  • Total U.S foreclosure pre-sale inventory rate: 4.15%

  • Month-over-month change in foreclosure presale inventory rate: -0.2%

  • Year-over-year change in foreclosure presale inventory rate: 7.4%

  • Number of properties in foreclosure pre-sale inventory: (B)  2,196,000

  • Number of properties that are 30 or more days delinquent or in foreclosure:  (A+B)  6,856,000

For more:  http://www.lpsvcs.com/NewsRoom/Pages/20110321.aspx


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Categories : Defaults, Delinquencies, Financing, Foreclosures, Homes, Mortgage Industry, The 203k Guy

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