Appears that mortgage defaults are still a concern.
See article link below from Market Watch via the New York Times.
http://www.marketwatch.com/story/1401-of-mortgages-delinquent-or-in-foreclosure-2010-05-19?siteid=bnbh
Love to hear your thoughts about the steady supply of foreclosures. I think it is here to stay for the next 18 months. With the initial wave of foreclosed homes, and the general economic meltdown, this overall rate of defaulted homes and foreclosures are not solely based on no doc loans. There has also been a secondary set of loans that have adjusted and reset creating more problems for many homeowners. The third wave is based in part on the job losses and employment cut backs over the past 12-18 months which has effected middle class buyers. When you have homes in your immediate area or neighborhood that are distressed and or foreclosed, the baseline value effects everyone. Then if you loose a job or get your hours cut, making ends meet is an issue. You can't refinance your way out it. And many governmental programs simply are too cumbersome and difficult to work through. So to me this is not a big surprise. As I have mentioned before, link all this with the commercial foreclosure market and "shadow inventory" of FDIC and bank owned new construction projects off the books and records, we have a long road ahead of us. Because every new media event erodes buyer confidence, keeps the lending institutions nervous and restrictive and keeps many people stuck without options.
Love to hear what is happening in your market or state? Thanks Greg
Comments