According to a Pew Research Center survey, 36% of Americans said it is acceptable to stop making mortgage payments, even if it is affordable.
Pew surveyed more than 2,900 adults on the subject of strategic default. More than one-in-five, 21%, said they owe more on their mortgage than their home is worth. These underwater borrowers are at the highest risk of strategically defaulting, because they lack the incentive to make the payments.
According to Deutche Bank, 14 million borrowers were underwater as of the first quarter of 2010, but with another 10.8% decline in house prices expected, another 6 million could slip into negative equity as well.
The problem has grown so dire Fannie Mae is suing some homeowners it believes strategically default on the mortgage.
Some programs such as the Federal Housing Administration's Short Refinancing program launched last week, and the RH program are attempts to help borrowers in this situation.
Nearly half of homeowners said the value of their home declined during the recession, but these borrowers are not more tolerant of strategic default than those in positive equity. According to Pew, 18% of underwater homeowners said it's acceptable to walk away, while 17% of respondents still with equity in their home approved of the practice.
Those who aligned themselves with the Democratic party were twice as likely to accept strategic default, at 23% compared to 11% of Republicans.
"Caught between big mortgages, sinking home values and the financial strains associated with periods of high unemployment, many homeowners have stopped making mortgage payments and opted to 'walk away' from their loans and their homes," according to Pew.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help, We have helped others we can help you...
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Tuesday, November 30, 2010
Saturday, November 27, 2010
Foreclosure Inventories up for Banks
JACKSONVILLE, Fla. – November 23, 2010 – The October Mortgage Monitor report released by Lender Processing Services, Inc. (NYSE: LPS) shows that accelerated foreclosure referral activity over the last several months has pushed the foreclosure inventory rate to all-time highs. As of the end of October 2010, foreclosure inventories are 7.4 times historical averages and rising.
The report also shows that foreclosure sales decreased dramatically over the last month as a result of the widespread moratoria. Overall, the percentage of loans moving from the foreclosure process to bank-owned status (or other involuntary liquidation) dropped by 35% in October. The moratoria contributed to further timeline extensions, as the average number of days past delinquent for loans in the foreclosure process approaches 500.
As foreclosure activity increases, more 6- and 12-month delinquent loans are moving to foreclosure, but the extremely delinquent category (more than 12 months) continues to grow and age. A payment has not been made in more than year on almost one-third of all loans that are 90 or more days delinquent. And, of loans that have not made a payment in two years, more than 18% are still not in foreclosure.
In the month of October, 263,000 loans entered the foreclosure process, which represents a 4.4% month-over-month decline. Total inventory of foreclosures is nearly 2.1 million loans with another 2.2 million loans in the “greater than 90-days delinquent, but not yet in foreclosure” status. While delinquencies remain elevated – currently registering at 2.7 times historical averages – an ever-growing number of new 60-day delinquencies are re-defaults of loans that had previously been 60-days or more delinquent, and had become current. The number of “first-time” troubled loans, however, remained relatively stable during the last several months.
As reported in LPS’ First Look release, other key results from LPS’ latest Mortgage Monitor report include:
Total U.S. loan delinquency rate: 9.29 percent
Total U.S. foreclosure inventory rate: 3.92 percent
Total U.S. non-current* loan rate: 13.20 percent
States with most non-current* loans: Florida, Nevada, Mississippi, Georgia, Louisiana
States with fewest non-current* loans: North Dakota, South Dakota, Alaska, Wyoming, Montana
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Note: Totals based on LPS Applied Analytics’ loan-level database of mortgage assets and are extrapolated to represent the industry.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help, We have helped others we can help you...
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
The report also shows that foreclosure sales decreased dramatically over the last month as a result of the widespread moratoria. Overall, the percentage of loans moving from the foreclosure process to bank-owned status (or other involuntary liquidation) dropped by 35% in October. The moratoria contributed to further timeline extensions, as the average number of days past delinquent for loans in the foreclosure process approaches 500.
As foreclosure activity increases, more 6- and 12-month delinquent loans are moving to foreclosure, but the extremely delinquent category (more than 12 months) continues to grow and age. A payment has not been made in more than year on almost one-third of all loans that are 90 or more days delinquent. And, of loans that have not made a payment in two years, more than 18% are still not in foreclosure.
In the month of October, 263,000 loans entered the foreclosure process, which represents a 4.4% month-over-month decline. Total inventory of foreclosures is nearly 2.1 million loans with another 2.2 million loans in the “greater than 90-days delinquent, but not yet in foreclosure” status. While delinquencies remain elevated – currently registering at 2.7 times historical averages – an ever-growing number of new 60-day delinquencies are re-defaults of loans that had previously been 60-days or more delinquent, and had become current. The number of “first-time” troubled loans, however, remained relatively stable during the last several months.
As reported in LPS’ First Look release, other key results from LPS’ latest Mortgage Monitor report include:
Total U.S. loan delinquency rate: 9.29 percent
Total U.S. foreclosure inventory rate: 3.92 percent
Total U.S. non-current* loan rate: 13.20 percent
States with most non-current* loans: Florida, Nevada, Mississippi, Georgia, Louisiana
States with fewest non-current* loans: North Dakota, South Dakota, Alaska, Wyoming, Montana
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Note: Totals based on LPS Applied Analytics’ loan-level database of mortgage assets and are extrapolated to represent the industry.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help, We have helped others we can help you...
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Tuesday, November 23, 2010
Foreclosures Freeze Hurts Home Prices
Integrated Asset Services (IAS) has shown that there has been a reduction of 0.2% in the price of residential property during the third quarter of the present year. In context of a general slowdown of U.S. economy, the figures indicate difficult times for home sales in coming months.
According to IAS 360 HPI (house price index) statistics home prices have shown a positive growth of 1.6% in the North Eastern regions of US due to independent gains in Washington D.C. and New York. As compared to this positive trend the prices in other regions witnessed a fall. In South HPI fell by 0.4%, in West it went down by 0.5% while in Midwest it plunged by 1.4%. However the hardest hit region was Las Vegas which experienced a decline of 27.6%. IAS has described this as the poorest performing region of US in quarter 03.
There are counties where home prices have fallen by as high as 50% over the last three years, according to IAS reports. Monterey County in California is the worst affected with home prices sliding down 41% over last year’s prices coupled with an additional fall of 3.8% in 3rd quarter of this year. Florida Lee County closely follows with a decline of 39% in the corresponding period with an added decline of 4.3% in Q3 of this year.
Ryan Tomazin, IAS president has reported that the housing crisis is yet from over as is reflected by data collected over the last year. According to him though the worst phase is over, it would take some more time for home prices to recover in view of the overall slow economic growth in United States. The president of this Denver based company was speaking on the revival of housing market. The trouble was compounded by robo-signing controversy investigations initiated by state attorneys general and federal officials.
Apprehensions arise because these investigations could result in slowing down of housing market caused by holding back of foreclosures by banks. As per statement issued by IAS, lesser foreclosures lead to fewer numbers of homes available for sale in the market thereby attracting few investors. Tomazin has rightly commented that the housing market is very fragile at this moment.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help, We have helped others we can help you...
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
According to IAS 360 HPI (house price index) statistics home prices have shown a positive growth of 1.6% in the North Eastern regions of US due to independent gains in Washington D.C. and New York. As compared to this positive trend the prices in other regions witnessed a fall. In South HPI fell by 0.4%, in West it went down by 0.5% while in Midwest it plunged by 1.4%. However the hardest hit region was Las Vegas which experienced a decline of 27.6%. IAS has described this as the poorest performing region of US in quarter 03.
There are counties where home prices have fallen by as high as 50% over the last three years, according to IAS reports. Monterey County in California is the worst affected with home prices sliding down 41% over last year’s prices coupled with an additional fall of 3.8% in 3rd quarter of this year. Florida Lee County closely follows with a decline of 39% in the corresponding period with an added decline of 4.3% in Q3 of this year.
Ryan Tomazin, IAS president has reported that the housing crisis is yet from over as is reflected by data collected over the last year. According to him though the worst phase is over, it would take some more time for home prices to recover in view of the overall slow economic growth in United States. The president of this Denver based company was speaking on the revival of housing market. The trouble was compounded by robo-signing controversy investigations initiated by state attorneys general and federal officials.
Apprehensions arise because these investigations could result in slowing down of housing market caused by holding back of foreclosures by banks. As per statement issued by IAS, lesser foreclosures lead to fewer numbers of homes available for sale in the market thereby attracting few investors. Tomazin has rightly commented that the housing market is very fragile at this moment.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help, We have helped others we can help you...
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Friday, November 19, 2010
Foreclosures to increase another 4.25 Million by 2012
The Federal Reserve expects about 4.25 million more foreclosure filings through 2012, and problems with the home-seizure process may threaten the U.S. housing and economic recovery, Fed Governor Elizabeth Duke said in prepared testimony.
“In the end, an overhang of homes awaiting foreclosure is unhealthy for the housing market and can delay its recovery, as well as that of the broader economy,” she said in remarks that will be presented to a congressional subcommittee tomorrow. A copy of Duke’s testimony was posted on the U.S. House of Representatives website.
A report released yesterday by a Congressional Oversight Panel found that irregularities in the foreclosure process may undermine financial stability. Attorneys general in all 50 states opened an investigation last month into whether banks and loan servicers used faulty documents or improper practices to seize homes.
U.S. regulators, including the Fed, expect to complete the on-site stage of their review into foreclosure practices this year and plan to publish their findings in early 2011, Duke said. The Fed estimates that the U.S. will have about 2.25 million residential foreclosure filings this year, and again next year, followed by 2 million more in 2012, she added in the statement to the Subcommittee on Housing and Community Opportunity.
“Financial institutions face a number of risks if inadequate controls result in faulty foreclosure documents or failure to follow legal procedures,” Duke said. “We are gathering information to ensure that the institutions we supervise have adequately assessed these risks and have accounted for them properly.”
The Fed’s “forceful” response to the financial crisis over the past two years, including its purchase of mortgage- backed securities, has reduced mortgage rates and made home loans more affordable, she said.
But one of the major problems the Fed faces is they continue to manipulate the currency and borrowing policies while the White House has done nothing to stimulate real business growth in the last two years, as a matter of fact things have gotten worse.
The Fed needs to change it's focus and protect the value of the US Dollar. The Obama administration needs to become more business friendly and PDQ! Pretty Damn Quick! Otherwise these numbers are low.
And what about the paperwork debacle from Bank of America, Can anybody say clear title? We have not heard the last of that. As a matter of fact we will soon hear that Banks cannot legally sale the properties it currently owns, because guess what? It does not legally own them! The people foreclosed on still are the legal owners! Just wait, It will come out!
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help, We have helped others we can help you...
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
“In the end, an overhang of homes awaiting foreclosure is unhealthy for the housing market and can delay its recovery, as well as that of the broader economy,” she said in remarks that will be presented to a congressional subcommittee tomorrow. A copy of Duke’s testimony was posted on the U.S. House of Representatives website.
A report released yesterday by a Congressional Oversight Panel found that irregularities in the foreclosure process may undermine financial stability. Attorneys general in all 50 states opened an investigation last month into whether banks and loan servicers used faulty documents or improper practices to seize homes.
U.S. regulators, including the Fed, expect to complete the on-site stage of their review into foreclosure practices this year and plan to publish their findings in early 2011, Duke said. The Fed estimates that the U.S. will have about 2.25 million residential foreclosure filings this year, and again next year, followed by 2 million more in 2012, she added in the statement to the Subcommittee on Housing and Community Opportunity.
“Financial institutions face a number of risks if inadequate controls result in faulty foreclosure documents or failure to follow legal procedures,” Duke said. “We are gathering information to ensure that the institutions we supervise have adequately assessed these risks and have accounted for them properly.”
The Fed’s “forceful” response to the financial crisis over the past two years, including its purchase of mortgage- backed securities, has reduced mortgage rates and made home loans more affordable, she said.
But one of the major problems the Fed faces is they continue to manipulate the currency and borrowing policies while the White House has done nothing to stimulate real business growth in the last two years, as a matter of fact things have gotten worse.
The Fed needs to change it's focus and protect the value of the US Dollar. The Obama administration needs to become more business friendly and PDQ! Pretty Damn Quick! Otherwise these numbers are low.
And what about the paperwork debacle from Bank of America, Can anybody say clear title? We have not heard the last of that. As a matter of fact we will soon hear that Banks cannot legally sale the properties it currently owns, because guess what? It does not legally own them! The people foreclosed on still are the legal owners! Just wait, It will come out!
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help, We have helped others we can help you...
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
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