Wikinvest Wire

Scary housing statistics of the last 24 hours

Tuesday, March 16, 2010

Following the remarkably high 60 percent back-end debt-to-income ratio for homeowners whose loans have been made "permanent" via the government's HAMP program as noted here a couple days ago come more scary statistics on the nation's housing market.

From Diana Olick's Loans Going Bad Faster Than the Fixes comes word of how long the foreclosure process is being dragged out:

More than 31 percent of loans that have been delinquent for six months are not yet in foreclosure, while 22.8 percent of loans delinquent for 12 months have not been moved to foreclosure status...
More evidence of banks being hopelessly behind or not wanting to take market prices for REOs comes in California foreclosure starts rise nearly 20% in February from the LA Times:
The number of properties scheduled for foreclosure sale also remained near record levels. However, actual sales of foreclosure properties, whether back to the bank or those sold to third parties, dropped 11.9% in February from the month prior.
Lastly, Paul Jackson at Housing Wire concludes that Housing Recovery is Spelled R-E-O after culling through yesterday's report from Lender Processing Services:
On average, severely delinquent borrowers have gone more than 9 months without making a mortgage payment—and yet foreclosure has not yet started for them. For those borrowers who are in the foreclosure process, it’s been an average of 13.6 months—more than one full year—since they last made any payment on their mortgage.
With this kind of data piling up, it's hard to get excited about the prospects for any sort of a near-term recovery. Based on how the banks and the government are handling the problem, we're probably in for a housing market bottom that will take years to form.

Bookmark and Share


Alex said...

"Based on how the banks and the government are handling the problem, we're probably in for a housing market bottom that will take years to form."

I agree. Now the question is whether it will take something like 5 years or 20? Very hard to say, but I have a feeling we are going to see a generation of children who will be laughing at their parents, who said it would bottom any year now, right up until they go off to college!

Anonymous said...


Any breakdown available by states? Is this an issue affecting the entire nation, or selected states?

Tim said...

They have some delinquency and foreclosure rate data broken down by state in the Lender Processing Services report but I didn't see any details on the "extended stay" data for homeowners who stopped making payments.

  © Blogger template Newspaper by 2008

Back to TOP