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Past due mortgages head wrong way in September 2012

Published on Oct 23, 2012 by

According to a report published today by dsnews.com and data compiled by Lender Processing Services, which has a loan-level database covering about 70 percent of the mortgages on the market, nationwide, the mortgage delinquency rate, which includes loans 30 days or more past due, but not in foreclosure rose in September 2012.

In August the number of mortgages in delinquency was 7.40%, that number for September rose to 7.72%.

Even though the above numbers rose, the number of foreclosures fell to 3.87% which was the first time in over two years that it had dropped below 4%.  (My assumption is that foreclosed properties are being sold quicker now than in the past as more investors are jumping into the market and buying low-priced properties.)

As of September 2012, there are 5.64 million properties that are 30 days or more past due or in foreclosure.  Of the 5.64 million, loans that were 30 days or past due but NOT in foreclosure totaled 3.7 million.  Of the 3.7 million, 1.53 million were 90 days or more past due, or on the verge of going into foreclosure.  Of the 5.64 million, 1.94 million were in foreclosure.

Looking to the future, currently there are 5.64 million in foreclosure, another 1.53 million are on the verge of foreclosure and another 3.7 million are 30 days behind on their loans.  Not very promising.

The states with the highest percentage of past due loans were Florida, Mississippi, New Jersey, Nevada, and Louisiana.

The states with the smallest percentage of loans still unpaid were Montana, Alaska, South Dakota, Wyoming, and North Dakota.

 
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Mortgage application rejected? You’re in good company.

Published on Sep 24, 2012 by

Mortgage lending fell to a 16 year low in 2011 according to a report by RISMedia.  Of the 11.7 million loan applications filed in 2011, only 7.1 million resulted in loan originations which equals roughly 60%.  That means, four out of 10 loan applications were rejected.

Additionally, there were fewer lenders on the market.  In 2006, the report covered details from 8,900 lenders, whereas in 2011 it covered details from 7,632 lenders.

The result, lending for home purchases declined over 5% from 2010 to 2011 and lending for refinances declined 13% from 2010 to 2011.

Whereas loan approvals were down, FHA insured loans were up.  The numbers indicate that in 2005 and 2006 only 3% of loans were insured by FHA.  In 2009 the numbers peaked to 37% of loans were insured by FHA and in 2011, the numbers dropped to 31% of loans were insured by FHA.  That means, 1 out of 3 loans are now being insured by FHA. Looking at total numbers, according to one expert, the FHA has 7.5 million loans outstanding and pays 12,000 claims per MONTH.

Looking at upside-down homeowners, roughly 23% of all homeowners owed more on their properties than the properties were worth.

No folks, you’re NOT alone!!

 

 
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