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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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Buy vs Rent – What’s better? $1,500 rental vs $100,000 purchase price

Published on Sep 11, 2012 by

Let’s compare renting versus buying.

Let’s look at the specifics.  If you rent, let’s assume you’re paying $1,500 per month, that equals $90,000 in five years ($1500 x 12 months x 5 years)

If you bought a home, let’s assume you buy a $100,000 home and put $5,000 down payment and take out a loan for $95,000 at 5% over 30 years. We’re also adding $4,800 per year for property taxes and another $4,800 per year for home repairs and $600 per year for property insurance.

Realistically, your numbers will vary, but looking at this scenario, you would be over $16,100 AHEAD if you purchase a home now than if you rented over the next five years AND your monthly payment should be under $1,000 per month for principal, interest, taxes and insurance.

ONLY you can decide what’s best for you, but buying a house in 5 years will allow you to get a $16,100 car for free, or trip or boat or ??? (if you plan correctly and save the money you’re not spending on the rental.)

This data is for informational purposes only and accuracy of the figures hereinafter set forth is not guaranteed. The actual costs with respect to each transaction will vary depending upon the circumstances.

 

 
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Are Seller’s taking power in negotiation?

Published on Aug 30, 2012 by

According to a study by Redfin and posted in Inman News, more buyers are feeling the tides are changing and their power position is being jeopardized because of the changing market conditions.  7 out of 10 buyers surveyed said they encountered multiple offers on properties they were trying to purchase and 31% said they would back off when faced with multiple-offer situations, up from 28% during the 2nd quarter of 2012.

Still, 46% of buyers feel now is a good time to buy, which is down from 56% during the first quarter.  32% of sellers now think is a good time to sell,up from 13% during the first quarter.  All this points to a change in the power position of buyers-vs-sellers in the real estate market.

Regarding home prices, 61% of those surveyed believe prices will increase, up from 32% during the 1st quarter.  All this points to a slow but strengthening real estate market.

 
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