Dennis Norman
By: Dennis Norman
According to a report issued by the Center for Responsible lending, the number of homes that have had foreclosure proceedings begun on this year broke the 1 million mark this past weekend. The Center for Responsible lending website has a rather depressing “foreclosure meter” that shows, in real time (sort of), the number of foreclosure starts since January 1, 2009. At the time I am writing this it shows 1,010,866.
In a related report, last week the Mortgage Bankers Association released their report on mortgage foreclosures and delinquencies for the 1st quarter of 2009 showing foreclosure starts were initiated on 1.37% of first mortgages which is over a 26% increase from the 4th quarter 2008 rate of 1.08% and a 36% increase from the rate of 1.01% a year ago. According to the report both the level of foreclosures as well as the increase in foreclosure rate from the prior quarter are record highs.
The other disturbing information in the report was that, according to the Mortgage Bankers Association, 12% of all home mortgages were delinquent in the 1st quarter of 2009 (including the ones in foreclosure). This is a record high since the Mortgage Bankers Association began its delinquency survey.
Not very encourgaging news. As I have said on several recent posts about the real estate market, I feel it is maybe nearing the bottom. However, seeing the foreclosure and delinquency rates in these reports really disturbs me. Not only do we have a record number of people and families losing their homes, the impact of foreclosures on real estate values is generally negative…therefore the “bottom” of the market we are seeing may very well be a “false bottom”. I think the true bottom is going come aftger we see the foreclosure and delinquency rates return to something closer to normal.
Dennis Norman
By: Dennis Norman
According to a report issued by the Center for Responsible lending, the number of homes that have had foreclosure proceedings begun on this year broke the 1 million mark this past weekend. The Center for Responsible lending website has a rather depressing “foreclosure meter” that shows, in real time (sort of), the number of foreclosure starts since January 1, 2009. At the time I am writing this it shows 1,010,866.
In a related report, last week the Mortgage Bankers Association released their report on mortgage foreclosures and delinquencies for the 1st quarter of 2009 showing foreclosure starts were initiated on 1.37% of first mortgages which is over a 26% increase from the 4th quarter 2008 rate of 1.08% and a 36% increase from the rate of 1.01% a year ago. According to the report both the level of foreclosures as well as the increase in foreclosure rate from the prior quarter are record highs.
The other disturbing information in the report was that, according to the Mortgage Bankers Association, 12% of all home mortgages were delinquent in the 1st quarter of 2009 (including the ones in foreclosure). This is a record high since the Mortgage Bankers Association began its delinquency survey.
Not very encourgaging news. As I have said on several recent posts about the real estate market, I feel it is maybe nearing the bottom. However, seeing the foreclosure and delinquency rates in these reports really disturbs me. Not only do we have a record number of people and families losing their homes, the impact of foreclosures on real estate values is generally negative…therefore the “bottom” of the market we are seeing may very well be a “false bottom”. I think the true bottom is going come aftger we see the foreclosure and delinquency rates return to something closer to normal.
Dennis Norman
By: Dennis Norman
It seems home mortgages are in the news daily lately: record-low interest rates, record-high foreclosure rates, the sub-prime mortgage mess, lack of jumbo loans and so on. It’s confusing at best and causing much concern for many people wishing to buy a home or refinance their existing home mortgage.
H. John Frank, Jr., President Paramount Mortgage Co.
To find out just what is going on in the home mortgage world today I turned to someone I have known for over 20 years that is a highly respected mortgage banker, H. John Frank. John agreed to do an E-View TM to discuss what is going on with mortgages today and to share information to help educate consumers that may be seeking a mortgage.
John was a great source of information and I have a lot to share so I plan to share his E-View TM in a series of posts over the next few days. Read more…
By: Dennis Norman
For investors there is no lack of opportunities when it comes to real estate. The recession, record foreclosure levels and high unemployment are some of the contributing factors to why there are “deals” to be had. I keep hearing from investors though that the problem is financing. Even established investors with a good track record and existing banking relationships are finding that banks are reluctant if not flat out unwilling to loan money to investors at this point.
H. John Frank, Jr., President Paramount Mortgage Co.
To explore this issue and find out what types of financing is still available to investors I turned to someone I have known for over 20 years that is a highly respected mortgage banker, H. John Frank. John agreed to do an E-View TM to discuss financing issues for investors. John has been a great source of information and I want to be able to share everything I learned from him so I’m going to share his E-View TM in a series of posts over the next few days. Read more…
By: Dennis Norman
Last week the average interest rate on 30-year fixed-rate mortgages dropped to 5.53% from 5.97%, making it the biggest one-week fall in 27 years! The Mortgage Bankers Associaiton also reported that mortgage loan applications were up over 100% during the week of November 24th after news that the Fed’s plan to buy mortgages.
In addition, as I reported last week, The Treasury Department is strongly considering a plan promoted by the National Association of REALTORS(R) to intervene directly in the mortgage industry by buying down mortgage interest rates to 4.5%.
