The supply of foreclosed homes and REOs has been shrinking by 20 percent or more for the past few years and now a noted columnist covering mortgages reports foreclosures have probably already peaked and now are in decline.
Homeowners with positive equity in their homes have fewer problem loans and are outperforming the national average for defaults. Their default rates are close to pre-crisis norms.
Homeownership fell across all age groups in the first quarter of the year, but declines were greatest not among younger Americans under 35 who have been having problems getting financing and finding homes to buy but among middle aged households over 45, which traditionally register the highest homeownership rates but suddenly registered significant decreases.
After accounting one out of four home sales in the depths of the housing recession and fueled turn-arounds in dozens of markets where waves of foreclosures and battered home values scared off other buyers, real estate investors today are playing a greatly diminished role in the housing recovery.
In another sign of institutional investors' appetites for foreclosures, inventories of presale foreclosures have declined nearly twenty percent since last year as lenders have made volumes of foreclosures available via REO tapes to well-funded hedge funds eager to buy in bulk.
In the first quarter, it took nearly 16 months to process the average foreclosure in America, a new record and an increase of 14 percent over the fourth quarter of 2012.
While the median national list price rose by only a modest amount in March, all indicators suggest that a broad-based housing recovery is beginning to take hold across the nation as a whole. List prices are appreciating at a year-over-year basis in more than 100 of the 146 markets tracked by Realtor.com and nearly all are within reach of achieving positive year-over-year price growth by the end of the year. A successful spring market could move the entire nation into the black.
Are zombie houses where the monsters live in the latest Resident Evil sequel? Or are they fraternities decked out for Halloween? Neither.
The inventory of properties in the foreclosure process expanded by nearly 10 percent in the first quarter, casting a pall over the housing recovery as local markets prepare for more foreclosures than expected. However, a high level of demand driving by investor activity may mitigate their impact.
Perhaps the greatest advantage of a short sale to beleaguered homeowner facing default and foreclosure is the opportunity to move on with life and put the bad debt behind them as quickly as possible. That advantage is shrinking as short sales take longer to sell than foreclosures.
While the rest of the nation's housing markets experience various levels of recovery, most markets in Florida seem to be relapsing to the heyday of the Foreclosure Era after a brief period of improvement.
Last month the New Republic published a provocative article on hedge funds and real estate investing (Your New Landlord Works on Wall Street) by former TV producer David Dayen. He said out loud what many people have been whispering.
The 23 states that require court orders to foreclose and other states that have enacted legislation that delays foreclosure processing will take twice as long as the rest of the nation to clear backlogged foreclosure inventories at their current rate.
The low prices that make foreclosures attractive to investors also make foreclosures toxic to communities and homeowners. The discount between "normal" priced homes and the prices paid for properties than have been through the foreclosure process can spell the difference between profit and loss to an investor at the same time that they drive real estate values into the ground.
While prices of normal foreclosures and short sales have been rising, damaged distressed properties are actually becoming less expensive, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.
It's deja vu all over again in Florida. In a virtual re-run of Florida's housing economy, its foreclosure starts lead the nation, prices are falling and inventories are too big, especially on the coasts.
Hot foreclosure markets have come and gone over the past seven years but one thing seems to stay the same. The markets with the most and the cheapest foreclosures are still located in Florida.
Data reports showing prices zooming in Florida and California markets that once led the foreclosure hit parade mask the reality that prices fell so far in some of those metros they still have a long way to go to reach their peaks in 2007-if they ever do so.
Some 10.7 million homeowners, or 22 percent of all residential properties with a mortgage, were in negative equity at the end of the third quarter of 2012, down by 100,000 from the second quarter. But the "sand states", the states that dominated foreclosures for years, still account for a lion's share of underwater borrowers.
Despite falling delinquency rates among lenders as a whole, delinquencies increased for Fannie Mae and Freddie Mac borrowers, especially in Florida. Coincidentally, CoreLogic announced today Florida leads the nation in the size of its foreclosure inventory.
Completed foreclosures fell 23 percent in November compared to a year ago and the national foreclosure inventory declined 18 percent from November 2011, from 1.5 to 1.2 million properties as demand from investors kept local inventories low.
The current residential shadow inventory as of October 2012 fell to 2.3 million units, representing a supply of seven months. The October 2012 inventory level fell 12.3 percent from a year earlier, when the shadow inventory stood at 2.6 million units.
Among the five lenders involved in the National Mortgage Settlement - Bank of America, Wells Fargo, JPMorgan Chase, Citi and Ally/GMAC - non-judicial pre-foreclosure activity (NOD, NTS) decreased 41 percent in November compared to a year ago, led by Bank of America with a 63 percent decrease and Citi with a 40 percent decrease. Meanwhile judicial pre-foreclosure activity (LIS, NFS) for the five lenders combined increased 26 percent from a year ago, led by Chase with a 114 percent increase and Wells Fargo with a 37 percent increase.
For the first time ever, sales of properties in some stage of foreclosure (largely short sales) outnumbered sales of bank-owned properties (REO) in the third quarter, as short sales continue to gain market share at the expense of REO and sales of completed foreclosures at auction.
Iinventories of foreclosures accumulated during the processing slowdown in the wake of the Robogate scandal are slowing shrinking, absorbed by demand so healthy that distress sales are actually rising faster on a national basis than full-priced homes.
As the nation's real estate economy has evolved and slowly improved over the past two and a half years, the geography of almost every leading metric measuring the health of local housing markets has changed to reflect local economic trends and conditions except the one that many economists and policy makers consider to be critical to the national economic recovery.
New Jersey , New York and Connecticut got hit with a storm of new foreclosures just days before Superstorm Sandy smashed homes and a knocked out power to missions of homeowners.
The national average discount on foreclosures has shrunk by 1.4 percentage points over the past year as competition for foreclosures as inventories tighten is driving prices closer to full-price properties.
Completed foreclosures plunged 68 percent in September from a year ago yet the national foreclosure inventory hardly budged in 12 months, according to the latest CoreLogic report.
Squabbling between governors, legislatures and the attorneys general who negotiated the National Mortgage Settlement with major lenders has tied up more than $588 million of the $2.5 billion paid by lenders as a result of the agreement and diverted $988 million more into states' general funds for non-housing uses, according to a study by Enterprise Community Partners.
September's foreclosure data showed America has become bipolar over foreclosures, with dramatic decreases in most states but increases nearly as great in judicial states where lenders are speeding up processing of defaults.
The shadow inventory of foreclosures fell in July and the flow of new seriously delinquent loans into the shadow inventory has been roughly offset by the equal volume of sales, but large numbers of potential foreclosures still linger in five states where processing timelines are much longer than the national median.
The long-feared backlog of foreclosures that accumulated during the Robogate processing slowdown in 2010 and 2011 has declined further as the number of new foreclosures dwindled in August and completed foreclosures are being quickly absorbed in markets hungry for discount priced distress sales.
CoreLogic today released a new analysis showing that 10.8 million, or 22.3 percent, of all residential properties with a mortgage were in negative equity at the end of the second quarter of 2012. This is down from 11.4 million properties, or 23.7 percent, at the end of the first quarter of 2012. An additional 2.3 million borrowers possessed less than 5 percent equity in their home, referred to as near-negative equity, at the end of the second quarter.
The average foreclosure-related sales price in the second quarter ($170,040) soared 6 percent from the first quarter of the year and was up 7 percent from the second quarter of 2011 - the first annual increase in average price since Q2 2010 and the biggest annual increase since Q4 2006.
Foreclosure activity patterns are varying significantly from state to state, often hinging on the level of dysfunction that exists in each state's foreclosure process, reported RealtyTrac yesterday. Recent legislation and court rulings could lengthen the foreclosure process in some of the states with the shorter timelines, however, resulting in a temporary foreclosure lull and subsequent rebound in those states as well, said Daren Blomquist, Vice President of RealtyTrac.
Nearly half of all seriously delinquent borrowers have stayed in their homes more than a year in judicial states, which have developed a serious backlog of pre-foreclosures, according to June data from LPS Analytics.
Despite a shortage of lower priced homes in markets across the country, the huge foreclosure inventory refused to decline in June, raising renewed fears that the overhang of discounted properties will put downward pressure on home prices.
Six months after the historic agreement between 49 attorneys general and leading lenders, foreclosure and pre-foreclosure inventories are as high as they were in January, even as investors and first-time buyers fight over scarce discounted properties in the marketplace.
The explosion of single family rentals-houses bought by real estate investors and rented to a single tenant-is creating a new category of property management companies to serve them.
Not only are short sales nearly as prevalent as foreclosures in many markets today, they also are selling at discounts almost as great as foreclosures. Both forms of distress sales are selling at discounts greater than six months ago.
The disparity between foreclosure inventories in states where a court order is required to foreclose and non-judicial states is growing dramatically, reaching 2.5 times higher in judicial states
Though the level of completed foreclosures remains high, it is down 27 percent from a peak of 1.1 million in 2010 according to the latest data from CoreLogic. Inventories at the national level remain the same as a year ago.
Significant price increases in bank-owned foreclosures are driving gains at the national, regional and local levels, helping home prices turn the corner with small quarterly and yearly gains.
FHA foreclosures rose 73 percent in April, driven primarily by defaults of loans made in 2008 and 2009 vintage loans, raising new questions about the solvency of the popular government program, which accounts for about a third of all new mortgages.
Inventories of bank-owned foreclosures for sale vary increasingly by state as the latest local data suggests that lenders are beginning to release a long-awaited wave of more than one million backlogged foreclosures, primarily in states where a court order is required to foreclose, known as judicial states.
More than half of all Americans are concerned that a huge wave of backlogged foreclosures to be released by major lenders in the wake of the Robo-signing scandal will lower home values in their markets.
Eleven of the nation's 20 largest metro areas based on population documented annual increases in foreclosure activity, led by the Florida cities of Tampa (59 percent) and Miami (38 percent). Other cities with increases included St. Louis (29 percent), Chicago (26 percent), Philadelphia (24 percent), and Atlanta (21 percent).
Short sales, once a rare event in local real estate market, today are nearly as prevalent as foreclosures as lenders seek to avoid adding to their foreclosure inventories and troubled homeowners opt for a faster way out of default. (See Banks and Investors Learn to Love Short Sales).
Standard and Poor's Rating Services' estimates that the time it will take to clear the supply of distressed homes, or the shadow inventory, on the U.S. market is now 46 months. For the city with the greatest estimate of the time it will take to clear its inventory of foreclosures and short sales, New York City, it will take 202 months, or nearly 17 years.
For years, the Washington metro area has ranked high on every list of the nation's hottest markets. Now, however, the region's multiple listing service, MRIS, is holding its breath and closely monitoring the situation as a wave of backlogged foreclosures freed by the resolution of the Robogate processing scandal prepares to wash over local markets and threaten vulnerable jurisdictions.
March foreclosure starts increased a modest 8.1 percent in March over February while foreclosure sales continued to behave somewhat erratically, dropping to their lowest level since December 2010, and most sharply in non-judicial states.
While inventories of homes for sale have been shrinking this spring, MLSs are filling the void with rental listings for single family homes that until recently were foreclosures. Some 16.1 percent of all listings on MLSs today are rentals, more than double the number in 2006.
The market share of foreclosures and short sales have fallen 27 percent from a year ago, pulling down March overall existing home sales 2.6 percent as inventories of foreclosures and short sales suddenly declined last month.
The rates that foreclosures and short sales are discounted from full-price properties have declined significantly in 2012, especially discounts for higher priced properties and in some of the markets hit hardest by foreclosures in the past.
Most of markets with the highest median year-over-year list price increases in March also experienced the largest reductions in their for-sale inventories and were among the hardest hit by the foreclosure crisis.
Even though foreclosure activity over past three months hit the lowest level in five years, don't break out the bubbly. We're enjoying the calm before the storm.
Lenders and investors no longer give short sales short shrift, according to the latest reports on the distressed sales market.
Will Chicago be the next big city to witness its housing market implode, virtually without warning?
Some 244 lawsuits were tracked in Mortgage Daily's fourth-quarter 2011 Mortgage Litigation Index the highest number since the index's 2007 launch.
Median home prices have continued to fall in the Midwest, now 2.4 percent below January levels, while every other region has shown improvement over the past three months.
Last month both foreclosure starts and sales suddenly retreated, declining quickly on a month-over-month basis after a sharp increase in January.
The inventory of homes awaiting foreclosure continued to grow in February as the number of new foreclosures actually declined, a sign that the recent filed multi-state AG agreement hasn't had any early impact on the backlogged foreclosure inventory.
Markets that experienced the biggest boom in foreclosures in 2009 and 2010 today are experiencing a decline in new foreclosures.
Millions of homeowners have lost their homes to foreclosure because they owed more on them than they were worth. Now a new study from two economists at the Cleveland Federal Reserve suggests that some homeowners in poorer markets are losing their homes because their lenders inaccurately overvalue them.
The latest data from RealtyTrac and CoreLogic makes it official. Driven by the still suffering economy, Foreclosures are marching northward from their traditional haunts in the recovering Sand States, invading markets that have seen relatively few foreclosures to date.
For six years the so-called "Sand States"-Arizona, California, Florida and Nevada-have absorbed the lion's share of punishment from foreclosures. But as many of those markets stabilize, the foreclosure plague is moving north and east and a major cause is the congestion of the region's foreclosure processing.
Despite enduring notably higher levels of foreclosures in February, three out of the nation's four regions shrugged off the uptick in foreclosures and achieved higher prices.
Moderate income to low income homeowners are twice as likely to be underwater on their mortgages, owing more than their homes are worth, making them much more vulnerable to default than those who bring home a bigger paycheck.
The average price of a foreclosure-related sale was only 29 percent below the average price of a non-foreclosure sale during the fourth quarter of 2011, down from a 34 percent foreclosure discount in the third quarter and a 35 percent foreclosure discount in the fourth quarter of 2010, according to RealtyTrac's Q4 and Year End 2011 U.S. Foreclosure Sales Report.
After ticking upwards last fall, the mortgage delinquency rate (over 30 days due) resumed its decline in January falling 2.2 percent from December's low. Defaults also fell from 2.24 percent in December to 2.16 percent last month.
Local markets will probably not be swamped by waves of foreclosures following the multi-state mortgage settlement announced yesterday. Rather, the huge inventory of one to two million foreclosures will enter markets gradually.
Both the number of completed foreclosures and the volume of homes in the foreclosure inventory fell significantly last year, suggesting that foreclosures have peaked.
Home prices in the U.S. decreased 4.7 percent in 2011, achieving the fifth consecutive annual loss after prices fell five straight months in a row in the second half of the year.
Mortgage originations plunged 10.1 percent from November to December, continuing a decline from 2011's September peak. At the same time, loans originated over the last two years have proved to be some of the best quality originations on record.
In another sign that buyers are having an increasingly difficult time getting mortgage financing, nearly one out of three home sales in December went to buyers paid all cash.
This year will be a tale of two cities. Local employment created by economic growth will drive housing market recoveries, and those markets that create more jobs will see property values and rents improve faster than others that don't.
Foreclosure activity and the national foreclosure rate last year both fell to their lowest annual level since 2007 and a new state law has brought foreclosure starts and sales to a virtual standstill in the state of Nevada, which has led the nation in foreclosures for the past five years.
Home prices in Atlanta plummeted during the fourth quarter as a flood of foreclosures saturated the market, leaving economists across the nation scratching their heads and local homeowners hoping for a turnaround.
The largest banks and federal savings associations created a 21.1 percent increase in new foreclosures during the third quarter when they lifted voluntary moratoria implemented in late 2010.
Just three weeks after Congress restored $40 million in its budget for homeownership counseling, a new study by the Urban Institute reports that counseling greatly increased the ability of homeowners to stay current once they cured a serious delinquency or foreclosure.
The Housing Crisis, which kicked off with the melt down of the Miami condo market in 2006, is changing Florida into a state where new properties are being exclusively marketed for foreign ownership and snow-state retirees who once were the lifeblood of the state's huge second home market now rent instead of buying.
Despite solid demand for home purchases overall, a glut of distressed properties is continuing to put downward pressure on home prices, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.
As the year winds down, a growing number of homeowners are 30 days or more behind in their mortgage payments. Delinquency rates, which have been in decline for months, are creeping up again.
Foreclosure filings decreased 3 percent from October and 14 percent decrease from November 2010. One in every 579 U.S. housing units with a foreclosure filing during the month, according to RealtyTrac's Foreclosure Market Report.
While activity increased on mortgage fraud cases being prosecuted in California, New York also saw acceleration in fraud and fraud activity in Minnesota zoomed, Florida's mortgage fraud index topped the list for the Third-Quarter 2011 Mortgage Fraud Index from MortgageDaily.com.
The UFA Default Risk Index for the fourth quarter of 2011 edged lower to 131 from last quarter's revised 133, which has suggests that residential mortgage default and prepayment risks are continuing their return to normalcy.
Mortgage banks made an average profit of $1,263 on each loan they originated in the third quarter of 2011, up from $575 per loan in the second quarter of 2011 and $346 per loan in the first quarter, according to the Mortgage Bankers Association according to the Mortgage Bankers Association. That's a 377 percent increase over a six month period.
After rising slightly to a rate of 6.02 percent in the first quarter, 60-day mortgage delinquencies will resume their decline, falling to about 5 percent of all performing mortgages by the end of next year
During the boom, the only way first-time buyers, minorities and working families could afford to buy a home was through subprime and creative financing. Now that homeownership is affordable, new barriers to financing and competition with investors are locking them out of homeownership and changing the residential fabric of our communities from ownership to rental.
Nearly half, 45 percent, of October foreclosure starts were redefaults-mortgages which had previously defaulted and were modified unsuccessfully either by the lender or the federal government. About 105,000 redefaults increased total foreclosure starts in October to 232,865, 11.5 percent more than the level of a year ago.
In a time of 4 percent mortgages and programs like HARP designed to help homeowners refinance at lower rates, more than 15 million homeowners who are underwater on their mortgages are paying rates higher than 5 percent.
The national delinquency rate for residential home loans fell to 7.99 percent in the third quarter, the lowest reading since the fourth quarter of 2008, and it represents a decline of 45 basis points from the second quarter of this year and a drop of 114 basis points from the third quarter of last year
In another sign that more foreclosures are on the way, defaults on first mortgages rose last month as defaults on other credit categories declined.
Foreclosure default notices are on the rise as the economy continues to take its toll and lenders become more aggressive as they move past the processing problems that have plagued foreclosures for more than a year.
Nearly half of all foreclosures listed for sale are so seriously damaged they need major repair before they are habitable, a percentage that has remained virtually unchanged over the past two years.
A new survey of former homeowners who have walked away from their homes found that their credit was good enough after foreclosure for the vast majority to rent new housing and few were required to make a larger than normal deposit.
The average time to process a foreclosure in New York State in the third quarter is now 986 days, the longest of any state and a new record for New York. When sales time is added, the time from default to a new owner closes is now 1179 days, or 3.2 years.
Of the approximately 4 million mortgages that are either 90 or more days delinquent or in foreclosure, the number that are delinquent 90 days or more days has shrunk to levels not seen since 2008.
FICO's latest quarterly survey of bank risk professionals found that growing optimism of late 2010 and early 2011 has been replaced with a markedly pessimistic outlook for defaults and home prices.
The so-called shadow inventory of foreclosures-properties that are seriously delinquent by not yet listed on multiple listing services for resale-is shrinking faster than a Weight Watchers spokesperson.
Litigation over the foreclosure process reached its highest level in the second quarter than in any quarter since MortgageDaily.com's Mortgage Litigation Index was introduced in 2007.
Processing delays have taken their toll on first-time homebuyer interest in short sales, which now account for more than one of every six house sales, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.
After two months of increases during and following the Congressional debate over the federal deficit last June, mortgage delinquencies may have resumed their decline.
Foreclosure filings rose 7 percent in August, but they are still down nearly 33 percent from August 2010. Foreclosure activity on a year over year basis now has been down for 11 straight months.
The percentage of mortgages in default more than 60 days in Fannie Mae's portfolio have fallen to the lowest level in two years, another sign that defaults are slowly but steadily declining as more homeowners pay their mortgages on time.
The average home entering the foreclosure process today won't house new owners until the next President has been inaugurated and in office for three months.
Short sales of pre-foreclosure properties jumped 19 percent in the second quarter even as sales of bank-owned foreclosures declined and overall distressed sales were flat.
It's official! With the nation on the brink of a double dip recession, mortgage delinquency rates, especially 30-day delinquencies-- have shifted course and they are trending up again.
Though the national delinquency rate is about percent below the level of a year ago, the inventory of foreclosures yet to be sold is about 10 percent higher.
First and second mortgage default rates in July fell to levels lower than three years at the onset of the recession three years ago despite continued high unemployment levels.
Bank-owned foreclosures (REOs) are taking significantly longer to sell than foreclosures bought and resold by investors, extending the timeline for REO foreclosures even longer than the extraordinary delays for resulting from slower processing.
The national mortgage delinquency rate (the rate of borrowers 60 or more days past due) decreased for the sixth consecutive quarter, dropping to 5.82 percent at the end of the second quarter in 2011 according to a quarterly analysis of credit-active U.S. consumers by TransUnion.
The average loan in foreclosure today has not seen a payment for 587 days, a new record and the total of loans in foreclosure or seriously delinquent now is 12.8 percent higher than last year.
June prices of non-distress sale homes were down only 1.1 percent from Juje 2010, and improvement over May, when prices were 2.1 percent below the previous year.
Foreclosure activity decreased in 85 percent of nation's metropolitan areas in the first half of the year and all top 10 metro areas with the highest foreclosure rates posted decreasing foreclosure activity.
Foreclosure filings in the first half of this year fell 25 percent from the last six months of 2010 and are off 29 percent from the first half of 2010.
Homeowners living in houses worth over $417,000 can live in their homes mortgage-free without fear of foreclosure for more than a year, but those in the less valuable homes are getting thrown out in 300 days or less.
There are significantly fewer foreclosure sales today than there were before foreclosure moratoria were put into place during the Robogate scandal last fall and foreclosure sales are declining.
The so-called "shadow inventory" of foreclosures, properties in the foreclosure pipeline but not yet listed on multiple listings services, slowly shank over the pst year but still amount to five months' worth of home sales.
Default rates on first and second mortgages sank lower than they have been since 2007 and 2006 as more and more homeowners are meeting their mortgage obligations on time.
New mortgage delinquencies reported by Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., rose 8.6 percent in May and the major mortgage insurer reported a slower pace of the decline in its delinquency inventory.
Four of the nation's largest mortgage lenders are "in need of substantial improvement" to service homeowners applying for mortgage modifications under the Making Home Affordable Program (HAMP).
Despite double dipping to their lowest levels since 2009, housing prices in the first quarter failed to drive up the percentage of homeowners who are underwater on their mortgages.
After more than 3.5 million families have lost their homes to foreclosure over the past five years, Fannie Mae has issued new standards requiring servicers to take a consistent approach for handling delinquent mortgages.
One out of ten Realtors (11 percent) report that low appraisals are killing home sales contracts and an addition 10 percent say they are delaying closings, according to an April NAR practitioners survey of Realtors. Some 14 percent report that appraisals coming in under the purchase price are sending purchase deals back to the negotiating table.
First-time buyer market share fell 18 percent below the level of a year ago, reducing absorption of distressed properties, which accounted for nearly half of all sales during the month.
Negative equity, which remains "stubbornly high" as the economy slowly improves, is concentrated among lower valued properties in foreclosure and in properties valued between $100,000 and $200,000 reported CoreLogic in its monthly US Housing and Mortgage Trends Report.
The inventory of homes in foreclosure awaiting resale fell slightly in April, but they are still 12.7 percent higher than they were a year ago, according to Lender Processing Services April 2011 month-end mortgage performance statistics.
"Massive" delays in foreclosure processing brought the number of new foreclosures to a 40-year low in April, extending the average foreclosure timeline to 400 days but reached 900 days in some states.
Yesterday the Justice Department sued Deutsche Bank AG, one of the world's 10 biggest banks by assets, for at least $1 billion for defrauding taxpayers by "repeatedly" lying to a federal agency when securing taxpayer-backed insurance for thousands of mortgages.
The pace of foreclosure starts increased by a third in March, building the national inventory of REO properties to an all-time high of 2.2 million at the end of the month.
Sales of distressed properties rose to 48.6 percent in March - the second highest level seen in the past 12 months, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.
Mortgages delinquent 30 days or more are continuing to decline steadily even though the number home owners who owe more on their homes rose slightly in the fourth quarter last year.
Reforms in the processing of foreclosures that have been put in place in the wake of the Robogate scandal are slowing the foreclosure timeline and extending the corrosive effects of large numbers of foreclosures on local markets.
Some markets are stabilizing now and on the macro level, the housing recovery is not far away, according to Sam Khater, senior economist at CoreLogic. But the long awaited recovery won't be much to get excited about, at least initially.
Nationally home prices fell for the seventh month in a row in February according to the CoreLogic HPI, declining by 6.7 percent year over year after declining by 5.5 percent in January 2011 compared to January 2010.
The inventory of unlisted properties that are in the foreclosure pipeline shrank slightly over the past year but remains at a nine months' supply.
Despite a steadily improving economy and declining mortgage delinquency rates over the past year, more homeowners still are paying credit card bills before their monthly mortgage payment, a three year old practice than roughly parallels the foreclosure era and the emergence of "strategic defaults," where mortgage holders walk away from their homes even though they can afford the mortgage payments
An enormous backlog of foreclosures dominates the foreclosure picture at every level, outpacing the monthly sales volume by a factor of thirty and promising to continue the Foreclosure Era for months and years to come.
The delinquency rate on mortgages 30 days or more past due fell by more last month than it has in nearly a year, according to Lender Processor Services' Mortgage Monitor report to be released later this week.
The potential default risk on nonprime mortgages that were closed in the first quarter rose to the same level as loans closed last spring and fall after a drop in the fourth quarter, according to the UFA Default Risk Index, which measures the risk of default on newly originated nonprime mortgages.
Foreclosures hit their lowest level in three years in February, in part because of the continuing confusion and disruption caused by the Robogate scandal last fall and in part because delinquencies have fallen steadily for a year as the economy slowly recovers.
New delinquencies and foreclosure starts continued to fall in January, but increases in foreclosure processing and sales were not enough to offset swelling foreclosure inventories or lengthening foreclosure timelines. In fact, the average loan in foreclosure has not made a payment in over 500 days, according to Lender Processor Services' February Mortgage Monitor report.
Almost half of the homes sold in January were foreclosures or short sales, the highest level of distressed sales in nearly a year, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.
Delinquency rates (on mortgages 30 or more days past due, but not in foreclosure) have been the brightest light in the gloomy foreclosure picture over the past year. Two new reports confirm that delinquencies are falling to pre-recession levels, a sign that the economy is steadily improving and the end of the foreclosure plague may be in sight.
Not so long ago, foreclosures were rare and mortgage-backed securities were considered sleepy, conservative, super low risk investments. In fact, there is reason to hope that the end of the multi-year foreclosure nightmare is finally in sight. The flow of future foreclosures has steadily slowed over the past year. Delinquency and default rates have been falling consistently.
A report by Lender Processing Services today confirms Fitch Ratings' analysis yesterday that the volume of defaulted loans moving to REO status has fallen to a trickle as a consequence of the Robo-gate scandal, contributing to a backlog of foreclosures that threatens to reverse the overall decrease in foreclosure inventory caused by the steady decline in new delinquencies last year.
Fall-out from the scandal known as "Robo-gate" will lengthen the time frame for clearing all the current non-agency inventory of distressed properties to four years, according to a new report today by Fitch Ratings.
Homeowners who modified their mortgages under government's Home Affordable Modification Program (HAMP) are staying current on their loans at a far better rate than critics expected and are outperforming industry modifications, according to the largest data from the Treasury Department.
Things were looking up for luxury home sales during the tax credit boomlet last year. However, the credit wasn't the primary reason; after all, $4000 isn't a compelling incentive to well-heeled move up buyers in the million dollar plus housing bracket.
The Federal Reserve is moving ahead with plans to change the right-of-rescission rule as part of the Truth in Lending Act (TILA) despite intense outcry from consumer advocates and top members of the Senate Banking Committee.
The Federal Housing Administration (FHA) offers new guidance for homeowners and lenders for borrowers with reverse mortgages falling behind on property taxes and insurance premiums, placing them at risk of foreclosure. “We understand that some senior citizens have not paid their taxes or insurance for some time and may be at risk of losing their [...]
“Not since the Great Depression has an economic downturn and the accompanying foreclosure crisis left so many lives in ruins. How can individuals and families find the resources and support they need to put their lives back in order?” asks A Resource Guide for Foreclosure Recovery, a 25-page handbook published by the Community Affairs division [...]
All loss mitigators are not created equal. The odds of curing a foreclosure and avoiding redefault are 1.7 times better for homeowners enrolled in the National Foreclosure Mitigation Counseling (NFMC) Program than for homeowners who do not receiving such counseling, according to the Urban Institute. The group released a report yesterday analyzing the NFMC program [...]
Low-income homebuyers who participate in matched savings plans (IDAs) and financial education are three times less likely to lose their homes to foreclosure than other low-income buyers in the same locale.
Mortgage delinquencies will drop nearly 20 percent by the end of 2011 to 4.98 percent of all mortgages from an expected 6.21 percent at the end of 2010, according to the latest forecast from TransUnion, one of the three top credit rating bureaus.
The New York Times once described downtown Scottsdale as “a desert version of Miami’s South Beach” with “plenty of late night partying and a buzzing hotel scene.” Luxury marketer and builder Luetta Newnam of Casa Buena Realty LLC, is a second-generation Realtor who has watched the real estate market swing to dizzying heights and record equity [...]
The quality, as well as the quantity, of many bank-owned properties in the REO inventory is creating a drag on home values because they are difficult to sell in today's market, Scott Sambucci, vice president of Altos Research, said yesterday in a Webinar for investors.
You've heard of the Shadow Inventory? The Heartland's foreclosure inventory isn't in a shadow. It's totally hidden.
Not only did the number of foreclosures grow during the third quarter, so too did the "foreclosure discount," the difference between the average price of foreclosed properties and properties for sale that are not in foreclosure.
Not until March 1, 2014 will the last of the seven million properties that are currently delinquent, in foreclosure, or bank-owned finally return to life as homes or investments.
As investigations and multi-month delays in the foreclosure process begin, those who will suffer most are JP Morgan Chase, Bank of America and Wells Fargo, according to a new survey of foreclosure exposure, and foreclosure suspensions are coming at a bad time, just as foreclosue sales are down and REO inventories are rising.
Almost hourly the nightmare facing the housing industry worsens as the ramifications of what is being called ForeclosureGate become clearer.
In its second quarter report, Fannie Mae confirmed what others have previously reported: since the first of the year, serious mortgage delinquency rates have slowly but steadily declined.
Though the Administration's Home Affordable Modification Program (HAMP) is falling far short of its goal of helping three to four million homeowners, the program is succeeding at helping those who do make through the program are stay current on their payments and avoid re-default.
While foreclosure starts remain high, the longer term foreclosure picture is improving as evidence mounts that delinquencies, though still very high, are declining, despite the economy.
Could 62 million homeowners be secure from the threat of foreclosure because their mortgages are held by an industry-run electronic mortgage registry that a California bankruptcy court recently ruled cannot be used to establish ownership of the loans?
Distress sales, foreclosures and short sales will increase their market share during the fourth quarter as the tax-credit induced sales bump disappears and buyers return to bargain shopping.
The consensus among the experts that home prices will fall farther before they hit bottom may become a self-fulfilling prophecy as the very buyers so desperately needed to buy up the excess inventory and stop the price slide will wait until they are absolutely sure that prices have reached their lowest point.
Rising numbers of real-estate owned properties (REOs) and delinquencies are creating excess supply in housing markets across the country.
Another provider of national credit data reported today that mortgage delinquencies have been falling during the first half of the year, suggesting that the housing sector is beginning to stabilize.
However, RealtyTrac;s news wasn't all bad. In fact, it confirmed a trend of declining default, suggesting foreclosures will decline as well in the months to come
A new study by the Pennsylvania of Realtors provides new evidence that job losses and unexpected medical bills, not subprime mortgages, are the two leading causes of foreclosure in that state.
While foreclosures fell in nine out of the nation's ten highest foreclosure markets during the past six months, they are increasing almost everywhere else in the nation as the changing causes of mortgage defaults bring foreclosures home to hundreds of communities.
Foreclosure filings fell 5 percent in the first half of the year but still exceed the first six months of 2009 by 8 percent, according to figures released today by RealtyTrac. One in 78 home0wners received a foreclosure notice in the first half.
Sales of foreclosed properties fell by one third in the first quarter from a year ago and 14 percent from the last quarter of 2009, according to a new report released today by RealtyTrac, the leading online marketplace for foreclosure properties.
Despite the recent publicity and current debate about homeowners who walk away from their mortgages even thought hey have the ability to pay; the phenomenon of "strategic default" may have peaked before it was identified.
The inventory of unsold existing homes remained unnervingly high in May, raising questions about the price outlook for the balance of the year, especially in light of an immense backlog of foreclosed properties, known as the "shadow inventory," that will certainly have a depressing effect on prices as those homes begin to come on market.
Despite the extensive and lengthy process required to modify mortgages in default so that borrowers could afford their payments, most will default again in a year or less, according to Fitch Ratings.
Good news on the foreclosure front continues as defaults fell 7 percent in May. Overall foreclosure activity fell 3 percent during the month and is virtually unchanged from the level of a year ago, according to RealtyTrac's latest report.
The worst looks to be over for the high risk loans that ignited the housing depression. Alt-A delinquencies declined for the second consecutive month following a steady four-year increase and subprime delinquencies also fell for the third straight month, according to the latest performance metrics from Fitch Ratings.
Processing of so many foreclosed properties has slowed down and the so-called “shadow inventory” has grow so large that it will take until 2013 to work them through the system.
Default risk for nonprime mortgages fell during the first quarter.
The Trulia-RealtyTrac survey produced the highest number yet of potential strategic defaulters.
The large number of homes in serious delinquency, or in the foreclosure process, suggest that the so-called "shadow inventory" of properties owned by lenders but not yet on the market has reached 4.2 to 4.3 million homes, said Jay Brinkmann, MBA's chief economist.
The percentage of foreclosures that were perceived to be strategic was 31 percent in March 2010, compared to 22 percent in March 2009.
The Mortgage Monitor report released today by Lender Processing Services, Inc., a leading provider of mortgage performance data and analytics, showed modest improvements in the number of loans curing to current and reductions in total new delinquencies.
Bank repossessions of homes (REOs) hit a record high in the first quarter.
Despite a slight seasonal improvement over last month, mortgage delinquencies still hover near record highs, 21 percent above a year ago
When asked if financial distress makes stopping payments on an underwater mortgage acceptable, 15 percent of respondents said yes in Fannie Mae's National Housing Survey, a remarkable level of public acceptance for homeowners who walk away from their mortgages in light of the growing number of defaults in Fannie Mae's portfolio.
The share of home purchase transactions involving distressed properties surged to almost half in February, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions.
The February 2010 Mortgage Monitor report, released by Lender Processing Services, Inc. shows that while delinquency rates in the U.S. have risen to historic highs, the pace of deterioration has slowed. However, the nation's housing market remains far from a full recovery.
For the second time in three weeks, a major national report on foreclosures and delinquent mortgages suggest that the flood of foreclosures that washed over the housing markets in 2009 is ebbing and may even be at an end.
With the year nearly one quarter over, inventories give no sign of a large "shadow inventory" of foreclosed homes being kept off the market.
The delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 9.47 percent of all loans outstanding as of the end of the fourth quarter of 2009.
The trend suggests that no locality is immune from what has become the leading cause of mortgage defaults, negative equity.
Federal programs now stretch from origination to guarantor to securitization and finally to domination of mortgage backed securities markets.
The higher end of the US housing market continued to weaken in January.
So many properties are in the pipeline that huge numbers of delinquent properties won't come to market until this year or later.
Thousands of homeowners who have been making payments on interest only mortgages are in for a rude shock this year
At first, all was well at the new location until a neighbor reported the chickens to the county's nuisance line last month.
Crime rates fell in nearly every one of the nation's leading foreclosure markets last year, exceeding a decline in the national crime rate in many cases, despite the widespread belief that foreclosures spawn crime.
To a small group of legal professionals who have figured out how to made foreclosures their pot of gold, the Foreclosure Era continues to be a time of prosperity and profit.
A New York speculator convinced ten different banks to give him 20 separate mortgages to buy 10 homes with no money down and he defaulted on every one.
That's the good and bad news from the latest Mortgage Metrics Report from the Office of the Comptroller of the Currency and the Office of Thrift Supervision.
Unwilling to appear Scroogy a week before Christmas, Bank of America, JPMorgan Chase and OneWest Bank joined Citigroup, Fannie Mae and Freddie Mac in postponing foreclosure evictions through January 3.
The 1.7 million homes currently in the "shadow inventory" significantly increases calculations of the inventory of homes for sale, according to a new report from First American CoreLogic.
Not only were Fannie and Freddie 27 days later this year than last announcing their moratorium, they're giving families facing foreclosures only 15 days of holiday peace, from December to January 3, 2010.
Recent industry studies suggest factors are at work that will make bargains harder to find and profit margins slimmer.
Some 4 million would be at risk of losing their homes and 2 million would have lost them, if the survey's findings proved to be true on a national level. Total foreclosures in 2009 are expected to exceed 3.5 million, according to RealtyTrac.
"While many have predicted a wave of foreclosures and REO's, I believe we are instead likely to see a wave of foreclosure cancellations as the Administration kicks off their conversion drive to make more modifications permanent, said ForeclosureRadar CEO Sean O'Toole.
In the San Francisco Bay region, where foreclosures reached record levels this year, rats and bugs are moving into abandoned houses as quickly as humans depart.
Some 86 percent of Florida condominium and homeowners associations expect foreclosures and delinquencies to stay the same or increase next year, creating additional revenue shortfalls for their associations.
Foreclosure filings fell nearly eight percent from October and were down 15 percent from the July peak.
Rather than foreclosing on defaulted mortgages in neighborhoods devastated by the economy, lenders are abandoning them because the cost of proceeding with foreclosure is greater than their value.
"I would have tried to place the animals somewhere safe," the farmer said. "Apparently they're not animal people at all."
Nearly one out of ten homeowners, 9.2 percent or 7.4 million homeowners, say they would likely walk away from their homes, default on their mortgages and suffer the consequences to their credit if they felt financially vulnerable and owed more on their homes than they are worth, according to a new national survey released today.
In San Diego, one person's pain is another's...place to party.
Of home loans that were current as of December 2008, more than two million, or 4.02 percent, were delinquent or in foreclosure by the end of October 2009.
A year ago fire safety organizations and insurance companies warned that desperate homeowners and business owners facing foreclosure would be burning their property to collect insurance money and avoid the stigma of foreclosure.
Last week’s ruling by a Suffolk County, New York judge wiping out $525,000 in mortgage debt has sent shudders throughout the lending industry.
When they owe more on a property than it is worth, investors are more likely to stop paying on their mortgage and default than owners living in a primary residence.
Freddie Mac's mortgage delinquency rate for its single family mortgages past due by 90 days or more rose for the 30th straight month in October, reaching a record 3.54 percent of its portfolio.
Fourteen percent of all American mortgages are either delinquent or in the process of foreclosure.
Like suburban areas, rural communities also are suffering the devastating impact of negative equity on their housing markets.
Last month a process server drove up to his Mokena, Ill. home and handed Franson papers notifying him he owed his old lender $93,702.51 and they were foreclosing on his home.
The number of consumers interested in investing in real estate has doubled since March 2009.
Today one out of every eight American homeowners with a mortgage (12.49 percent) is either in foreclosure or delinquent in their payments.
The first wavelets of a long-dreaded tsunami of new defaults are washing up on the shores of California, Nevada and other markets where prices soared during the housing boom.
Foreclosures fell in five of the top ten markets for distressed sales during the third quarter, but new foreclosure hot spots cropped up in unlikely Western markets.
A Los Angeles-area couple and three partners were charged last week with torturing two employees of a loan modification company who they believed had defrauded them and reneged on a promise to help save their home in a Los Angeles suburb.
Real estate agents participating in the Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions report that residential property values rose 6 percent from August to September.
Churches, parsonages, church schools and other properties are becoming victims of the same sour national economy that has devastated secular real estate.
After reaching an all-time high in 2009, foreclosure starts will to decline after the first of the new year, according to a new forecast from UFA LLC.
Nearly one million homes received some form of foreclosure notice during the third quarter, setting an all-time high for foreclosure filings reported by RealtyTrac.
A Reno law firm is preparing a class action lawsuit on behalf of Nevada homeowners who face foreclosure by a surrogate company that represents thousands of mortgage owners but doesn't actually own the loans themselves.
A day of music, children's entertainment, food and a healing sanctuary begin at 10 AM tomorrow in Novato, California's Hamilton Amphitheater to raise money to help nearly 80 families from Marin and Sonoma counties who are facing losing their homes to foreclosure
Nearly one out of twenty mortgages guaranteed by Fannie Mae was seriously delinquent in July, according to the latest data released today from the Congressionally-chartered company.
Owners may abandon as many as a million or more animals in foreclosed homes this year and many could possibly starve to death before they are discovered, a senior official of the American Society for the Prevention of Cruelty to Animals said today.
State and local programs to help troubled homeowners stave off foreclosure through mediation have yet to make much difference to date, according to a new report from the National Consumer Law Center.
Even if the disappointingly slow Federal foreclosure program achieves the goals for which it was designed, the foreclosure crisis could be as bad in three years as it is today. A flood of new foreclosures generated by the double whammy of unemployment and resetting exotic loans will overwhelm the government efforts and impede recovery.
Two reports out yesterday revived fears that waves of new foreclosures will come crashing down on residential real estate markets as borrowers default on exotic adjustable rate mortgages (ARMs) that will reset over the next three years.
"Cure rates," the percentage of borrowers who recover on their own after falling delinquent on their mortgages, may not be as great as previously assumed, according to a new report from Fitch Ratings.
Just when you think the foreclosure picture can't get any worse, it does. MBA's quarterly delinquency survey set another distressing record today.
Foreclosure filings for July rose 32 percent over a year ago and seven percent over June, according to RealtyTrac. One in every 355 US homes received a default notice, was scheduled for auction or was repossessed by a bank last month
Like a bride preparing for her wedding, the residential real estate industry is slimming down, primping up, and generally working hard to reinvent itself in anticipation of the day when long-absent consumers will return to the marketplace.
Increasing minority homeownership has been a national policy of both Republican and Democratic Administrations for decades, and for good reason. Traditionally, homeownership has been the path most families have taken to establish financial security. Moreover, homeownership has long been associated with such positive factors as safer neighborhoods and better neighborhood schools.
Like black markets that spring up in ravaged cities during wartime, there's something inherently unhealthy about the existence of a two-tiered housing market, one for "normal" sales and one for "distressed" sales.
The best news in this week's June existing home sales report was not the increase in sales in the face of rising interest rates, which was certainly welcome news, but the fact that inventories declined despite record foreclosures during the first half of the year.
Nearly one third of all homeowners who seriously default on their mortgages end up paying what they owe and don't need to renegotiate their loans, according to a new, massive study by economists at the Federal Reserve Bank of Boston.
As long as Americans have owned homes and records have been kept, never have more families lost more homes to foreclosure than in the first six months of this year. The raw numbers in RealtyTrac's latest report are startling.
Just what is the world coming to?
Five months and 1,1 million foreclosures after President Obama announced the Making Home Affordable programs, the Administration has yet to identify a single borrower who has closed on a modified loan under the program, though at least one servicer reports approving 87,100 mods.
A recent study conducted by researchers from the graduate schools of business at the University of Chicago and Northwestern University found that one out of four homeowners who default on their mortgages make a strategic decision to clear out their belongings and walk away from their homes-even if they can afford to pay their mortgages.
Standard & Poor's latest report on the cost of mortgage losses to the financial sector does a good job of totaling up the dying bodies to date killed by securities backed by tainted, exotic loans. The tally is frightening, but what may be scarier are the good old fashioned foreclosures yet to come.
Last week's report that the economy lost 467,000 jobs in June and the unemployment rate climbed to 9.5 percent, the highest rate since August 1983, was not just bad news for Wall Street. It was also terrible news for the war against foreclosures.
With the raging recession killing jobs, falling prices driving even more homeowners underwater, and thousands of loans that should never have been made resetting, reports of record foreclosures have become the norm.
The Administration's loan modification program is aiming for millions of mods over its three year lifespan, HUD Secretary Shawn Donovan told a conference of real estate journalists today and there are 200,000 trial modifications in process right now, 40,000 were added in the last week alone .
For a year or so, rumors of a "shadow inventory" of foreclosed homes have captivated the real estate industry.
The May foreclosure numbers from Realty Trac show a six percent decrease in Foreclosure filings—default notices, scheduled auctions and bank repossessions—over April and several media outlets decided the report was good news.
What was suggested strongly by the latest MBA quarterly delinquency survey (see Delinquencies: Trading One Nightmare for Another) has been confirmed by a new report from TransUnion.
If there is any slight comfort to be taken from today's record-breaking mortgage delinquency numbers from the Mortgage Bankers Association, it's that there are early signs that the option ARM nightmare may not be as bad as many feared.
Families struggling to stay in their homes and working through loan modifications with their lenders are being targeted with the following message broadcast by the National Taxpayer Advocate.
For the past three months, the number of homes possessed by lenders (REOs) has fallen, reaching the lowest level in a year in April, even though the total level of foreclosure filings has risen to a record high.
Foreclosure filings surge in March to an all-time record as banks lifted moratoria on filings. Five states accounted for nearly 60 percent of foreclosures in the first quarter of the year.
For real estate market watchers anxious to see the end of the foreclosure plague that has poisoned property values across the nation...
Last year the gap between sales prices of REO properties and non-foreclosed homes grew dramatically in a number of the nation’s leading residential markets, suggesting that REO properties are increasingly discounting their prices and driving down home values at a faster rate.
The Obama foreclosure mitigation plan offers hope for the future but the present foreclosure situation illustrates the magnitude of the problem it faces. Foreclosure filings in February were 290,000, up 6 percent from a month earlier and up nearly 30 percent from a year earlier. With the economy contracting and shedding a large number of jobs on a monthly basis, it is likely that the grim foreclosure situation will continue throughout the remaining months of this year
Foreclosures in February soared 30 percent in 12 months, increasing 6 percent over January. The rise cannot be blamed on the lifting of moratoria on foreclosures alone because moratoria instituted in January by Fannie Mae, Freddie Mac and leading lenders remain in effect to allow defaulting borrowers to participate in the Administration’s new foreclosure prevention program.
In the fourth quarter of last year, more homeowners—nearly 8 percent—were delinquent on their mortgages than 1972, when records were first kept. Jay Brinkmann, MBA’s chief economist and senior vice president for research and economics attributed the increase in delinquencies to factors that had nothing to do with the economy.