Tuesday, December 6, 2011

The average loan in foreclosure has been delinquent for 631 days. That’s nearly 21 months


Florida, for example, has gotten slammed in the foreclosure crisis. LPS shows that a whopping 22.8% of loans there — nearly one out of four — are not being kept current. Of those, 8.4% are delinquent and 14.4% are actually in foreclosure.

REO prices for the big Florida metro areas reflect the problem: In Tampa, for instance, prices were down in October by 6.7% from the year before, while in Miami, they were down 4.0% from the previous year. http://www.housingwire.com/2011/12/01/average-time-to-foreclose-sets-new-record-of-631-days

FHA has 7.3 million loans outstanding, a delinquency rate of 17 percent means over 1.2 million loans are delinquent. What's worse is FHA insures 100 percent of the losses on loans it insures, and as a result its loss severities are extremely high. http://www.cbsnews.com/8301-505123_162-57335131/fhas-financial-condition-worsened-in-october/

The national median average price has dropped less but still substantially, from $248,000 in 2006 to $176,000 in this year’s third quarter. Another factor is continued low interest rates. Rates for a 30-year conforming loan (that is, a loan with a balance of $417,500 or less) were 4.23% last week, according to data released today by the Mortgage Bankers Association. http://moneyland.time.com/2011/11/28/home-affordability-near-highest-level-in-20-years/?iid=pf-article-editpicks