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Friday, May 21, 2010

One in Ten Mortgage Borrowers Will Lose Their Home To The Bank



New Observations is forecasting that a minimum of one in ten homes with a mortgage today will be lost to foreclosure in the next two years and that this loss represents a staggering five-million-unit addition to inventory-for-sale.
A record high 4.63% of mortgages were in foreclosure at the end of March The Mortgage Bankers Association reported Wednesday. Much worse, a mammoth 9.54% of mortgages are 90-days or more past due.
Given cure rates are slim-to-nothing-at-all beyond a 60-day delinquency, in practical terms, all of these seriously-delinquent homes will be lost through a sheriff’s auction, a short sale, a deed-in-lieu passing title from borrower to bank, or some other variant of distressed sale. Amherst Securities Group in a Sept. 2009 report said of the cure rate: “The cure rate on 60+ loans has decreased from 66% in early 2005 to 5% in Q2 2009.”
What is obvious and apparent from the cure-rate chart (see above-click for a clear view) is that borrowers who miss a payment are giving up quickly. After two payments are missed, the mortgage is a goner. It’s a new phenomena and adds a serious risk of falling prices for those who currently own homes.
If 50 million homes carry a mortgage, and with 10 percent lost to the bank in the next two years, five million units will be added to the current for-sale inventory. The five million bank-repo homes works out to about 10 months of sales at an average rate. Amherst estimated 7 million liquidations to the bank, but it was unclear over what period of time. The numbers will have even a more exaggerated impact if mortgage-payment performance continues to fall.

25 comments:

  1. "Consumer spending increased by the most in three years "

    Thats because no one is paying their mortgage lol.

    ReplyDelete
  2. 1056 govt stupid shill, a sheep if there ever was one.

    ReplyDelete
  3. But, But, But Japan's economic engine accelerated in the first quarter, with red hot growth in China spurring a broadening recovery.

    Real gross domestic product grew at an annual pace of 4.9 percent in the January-March period, the government said Thursday. The figure marks the fourth straight quarter of expansion

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  4. US employment grew at the fastest pace in four years in April as businesses ramped up hiring, suggesting the economic recovery was growing less dependent on government support.

    Employers added 290,000 jobs last month, the Labor Department said on Friday, far more than analysts had anticipated. In addition, 121,000 more jobs were created in February and March than previously estimated.

    Private-sector job growth in April was much stronger than expected, with government hiring for the decennial US census a secondary factor.

    "This is now a recovery that could survive the withdrawal of the policy support that we have in place. The missing pieces of the jigsaw are there now, labor market conditions are picking up and strengthening," said Paul Ashworth, senior US economist at Capital Economics in Toronto.

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  5. All of the above is falsified numbers nothing more, more lies, more propaganda, more deceit, nothing to see but the Truth, and the above are all lies.

    ReplyDelete
  6. Everyone buy your shares first thing in the morning. U.S shares will skyrocket soon. The DOW will shoot above 11,000 very soon, then 12000 by early next week.

    Buy your stocks while they are cheap and make a killing!

    ReplyDelete
  7. stock market will crash soon, get out now while you can, take it all out, let the suckers lose everything

    ReplyDelete
  8. Stock markets going to rally. People will become rich. Just because you are working class you think it will crash. There's big money to be made in the U.S markets, watch it rally!!

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  9. 10:56, 11:23, 11:45, 11:49, 12:33, and 12:57 are all the same person.

    Let us give him a name; Egghead101112. He is probably an Acorn employee sitting behind his desk being told to check in throughout the day and leave comments that attempt to thwart certain sites and leave the people distracted or confused who go on them. There are probably a couple thousand of them assigned to do this across the country and on many different sites, if not even make youtube videos and such to discredit the TRUTH.

    There are a massive amount of government employees and agents that it wouldn't be hard for them sitting behind their desk to just leave a comment once a day for each article, if not in time they'll up their game to posting several so they can be more believable.

    Everything that Egghead101112 said is absolutely nonexistent. Might as well delete his comments.

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  10. 2:15 , ok.. let's make a bet. $100 says the U.S markets rise tomorrow! Are you up for it?

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  11. Get use to living out of a tent. Why does one need an over priced home 10x time your income, or if you have no income you really have to rethink your strategy. You see at some point you may want to look at european designed Tents. Something made of canvas that can last many years and can pull you through the immediate timeframe. Lets just say 5 million homes at a regular rate of 4 people per home means in the very near future at least 20 Million new homeless are going to be finding any way they never thought of to survive, welcome to the new "liberal" society Obombya never told you he meant for his "hope and change" thingy...

    "Through control of banking, they acquired a total monopoly of "the movie industry, the radio networks and the newly developing television media...we took over the publication of all school materials... Even your music! We censor the songs released for publication long before they reach the publishers...we will have complete control of your thinking."

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  12. The HealthScare bill touts the fact that 32 Million Americans will now get health care by FORCING them to buy it from the big money insurance companies! Wow! Let’s take care of hunger the same way! Let’s mandate all Americans stop being hungry by forcing them to buy food! We’ll take care of homelessness by mandating that all American’s buy a house (or at least a tent)

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  13. Can anyone in the know offer me some serious advice or knowledge?

    In the last great depression, what happened to home loan interest rates? Did that go up or down?

    I'm struggling to find information on what would happen to home loan rates.

    Any advice would be appreciated :)

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  14. "Can anyone in the know offer me some serious advice or knowledge?

    In the last great depression, what happened to home loan interest rates? Did that go up or down?

    I'm struggling to find information on what would happen to home loan rates."

    I can offer you naught but knee kicks to your face. I also off elbow strikers, whip lashes and flung semen between your jail bars.

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  15. i love the guy saying retirements went up
    lets see they plummeted 60 percent and are up
    40 percent yes we are all rich
    and thats not with the next crash thats here
    you sound like an idiot babbel
    next youll be telling me how great it is that we bomb every country then tell them there free
    as we steal there oil and just getting rid of the dirty stuff
    and how the oil in the gulf is great for water skiing because you glid across the slim
    the big turn around 1.6 million jobs lost
    290 thousand hamburger flipin jobs started
    what a goverment schhil
    also clinton attacking north korea she loves to start wars
    12 57 11 49 and all your idiotic posts
    the maeket is collapseing
    buy the end of todauy down another 300 points
    golds going down stupid selling to cover loses
    construction is dead
    delusions buy a fool should be in your posts
    the cost of everything going up
    the best we can hope for is the bleeding to stop
    but thats not going to happen
    germany just started no naked selling
    congress just past reformm bill
    its to late 100 trillion to late
    buy this time next year it will be a w recovery
    then a double w when next sept it collapses
    only an idiot would put his money in there
    got gold buy know why you still can

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  16. weee race to the bottom
    5000 thousand buy next week
    take your money out while you can
    it a suckers rally

    ReplyDelete
  17. geithner clinton in china next week
    bowing to the masters
    maybe we americans can work for 10 cents a day
    like good slaves
    thank god we have these people looking out for us
    after all nafta was started by bill clinton
    and geithner ran the ny fed
    they saved us from our high paying jobs and benefits
    working for there chinese masters
    i salute you geithner and clinton
    you should get the highest chinese medals
    along with our nobel prize winning obama
    we are so lucky
    giethner running to europe and china
    bowing and begging dont let this fail
    you can have all our jobs and money
    well bomb everyone you want

    ReplyDelete
  18. last week 700 point drop
    know the panic selling sets in
    nice and sunny outside
    and yes the rich spend
    but the rest of you will live in tents
    and be told how lucky you are
    dont you feel lucky

    ReplyDelete
  19. 2:51

    I"LL TAKE THAT BET! LETS MAKE IT $100,000? Put your money where your mouth is boy!

    ReplyDelete
  20. If you have never herd of the "Bonus Army" look it up. Basically these were WWI vets that were promised extra money for each day they stayed in active duty. Thousands of them traveled to DC, one way or another, many brought their families and they all built tent cities all around the Whitehouse area. The story has a tragic ending.

    Minus the tragic ending, I would hope that every person who is forced into homelessness through job loss or foreclosure, move to DC and pitch your tent right there in the Mall. We can all wash our cloths in the reflecting pool.

    Better yet, hop the fence and pitch your tent on the Traitor in Chief's lawn. When you need to go potty, just knock on the door.

    ReplyDelete
  21. 6:22 looks like your winning the bet ... market is down right now ... but see how it ends today.

    7:32 everyone should look at how the value of the US dollar has dropped (other countries too) since the Federal Reserve took over. We should not just have an audit but a trial and make them pay all of that devalued money back with penatlies and interest like they do to us !!!

    ReplyDelete
  22. Monday, May 24, 2010
    9.25 Earthquake in Temecula, California
    HAARP induced

    Be ready

    ReplyDelete
  23. You people are not even getting the times right on your moron calling today!! Double check before you type.

    ReplyDelete
  24. Fears over the state of the UK housing market are on the rise, prompted by the announcement from the British Bankers�?? Association that mortgage approvals for September fell 14% compared to August.Total mortgage approvals for the month of September 2007 for BBA members were tallied at 52,685, significantly down on the 61,051 recorded in August, and weighing in at 27% lower than the same month last year. Indeed, the number of September approvals was at its lowest since 2000. Much importance is placed on the number of UK mortgages advanced in a month as they are a key indicator of the state of the market; a decline suggests that house prices will soon follow the downward trend.The director of statistics for the BBA, David Dooks said: �??Lower amounts of new mortgage lending combined with fewer approved house purchase loans signal a weaker outlook for the mortgage market, especially if loan supply is reduced following the recent financial market difficulties and costs of borrowing remain

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    ReplyDelete

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