We recently read that for the first time since the housing crisis began, the number of homeowners falling behind on payments has decreased. This drop does not mean the end of the problems are at hand, just that it seems to be leveling off. There are still millions in foreclosure now and it will take some time for the market to absorb the foreclosed homes.
The article went on to say that economists see at least another 6 months of pressure on home values in some parts of the country and in high-foreclosure areas such as Southern California, Phoenix, Las Vegas and Miami homes have lost about 1/2 their value. A report just out from the Mortgage Bankers Association shows that Arizona, Florida and Nevada had the biggest declines in new foreclosure notices this last quarter.
Here are the reported 2009 4th Quarter numbers...
- 85% of Homeowners on time with their payments or less than 30 days late.
- 5.1% have missed at least 90 days of payments.
- 5.3% have missed 30-60 days of payments
What are your thoughts?... Is the worst behind us?
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Wayne and Lynda Gomillion
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With the large amount of ARM's set to reset I think the biggest storm of foreclosures is yet to be seen. I've read about this time and time again. Perhaps it's the calm before the storm.
I don't feel it ending here too with the prevailling mindset of letting it all go because it is upside down. Last week I got 20 BPO orders in a 24 hour period. Today I got 17 in a 7 hour period. I only average 100-150 a month so that's a lot o default!
It seems like the number of foreclosures is less in some parts of the country. In fact, in some areas, prices are starting to go up a bit.
I wish this were true -- However, we have yet to see the end of the foreclosure crisis! Calm before the storm is correct -- We still have "strategic defaults" to deal with ie. Borrowers who find themselves in a negative equity position that feel the market will not recover enough to make sense to continue to pay the mortgage even though they can...
JE
We were supposed to be inundated with foreclosures here in April 2009, but I didn't see that it happened. Now the experts (not that I trust the experts anymore) say April 2010. We'll see.
Hi Wayne and Lynda ~ Let's hope so huh? Funny - I was just chatting with our loan officer yet and we were wondering if there's another wave coming. For so long people were able to use home equity lines to deal with debt, get through emergencies, etc. With that pipeline turned off it seems that a lot of people are pushed right to the edge - if not off it - right now.
Liz
I think area has a lot to do with it. Thankfully here in Staten Island, the values have steadied. In some cases we have seen a little raise. Only time will tell.
Thanks for reading and commenting... Although we're somewhat insulated, the largest obstacle we're encountering is when buyers need to sell, usually in a tougher market, before they can buy here.