The delinquency rate does NOT include loans that somewhere in the process of foreclosure. If you combine the current foreclosures with the delinquents, you get a whopping 14.41 percent.
The MBA didn't pull any punches when assessing the situation (emphasis ours):
"The outlook is that delinquency rates and foreclosure rates will continue to worsen before they improve. First, it is unlikely the employment picture will get better until sometime next year and even then jobs will increase at a very slow pace.
Perhaps more importantly, there is no reason to expect that when the economy begins to add more jobs, those jobs will be in areas with the biggest excess housing inventory and the highest delinquency rates.
Second, the number of loans 90 days or more past due or in foreclosure is now a little over 4 million as compared with 3.9 million new and previously occupied homes currently for sale, although there is likely some overlap between the two numbers. The ultimate resolution of these seriously delinquent loans will put added pressure on the hardest hit sections of the country."
Delinquencies Continue to Climb in Latest MBA National Delinquency Survey (Press Release) [MBA]
(Photo:Nick Bastian Tempe, AZ)
@TecmoTech: Those people wouldn't learn their lession, and would borrow again.
]]>I can get an adequate condo rental for 1/5 of my mortgage payment. That means I have way less pressure in keeping my higher paying job. I have freedom. I have time. No responsibilities.
BTW, I didn't make 9 payments now and a used to get a few collection calls and nothing more. Nobody knows who owns my mortgage.
Also, I think that the are not in a hurry to foreclose because just like I cant sell my house neither can they. They are thinking to just let me stay there a while and come for the house when things get better.
In the meantime I am paying down my credit cards and banking as much money as I can.
]]>@TecmoTech: People need to buy only what they can afford, and pay a sufficient down payment so as to have "skin in the game". And after purchase, continue to live within their means.
As a result, home prices won't be or need to be artificially inflated by loose lending or tax credit scams, which only kick the can down the road and pull future demand into the present.
]]>@harvey_birdman: True enough. Now these overextended people are underwater on their homes. And the groups like the lenders, appraisers, and realturds enabled them. One sick system.
]]>All that would do is inflate house prices by 25% temporarily while the "haves" move into other homes and the "have-nots" wait 5 more years for their wages to inflate to the point they can buy their first house.
The best way to fix the situation is to put the brakes on idiotic mortgages (They still exist, Canada, for example, allows mortgage terms so long the average new home buyer will be retired before they have their house paid off) and allow people who abused their houses as magical money printing self-filling piggy banks to bankrupt themselves as the economy would have if they had invested that poorly in anything else.
]]>@holytrainwreck: You forgot one group - homebuyers who overpaid and bought houses they can't afford. It's easy to blame others, but this is a problem that is just as much our fault as it is the moneylenders.
]]>@xkaluv: Either way would have solved nothing. We are helping one group at the expense of our currency's value.
]]>@TecmoTech: Forgive it how? The only way to do so is to continue printing money at a dangerous level. Our money is already being inflated to epic proportions, why do you want to devalue the dollar so?
]]>Seems that if we had applied bail out money to these people's mortgages then that precentage would be much lower and the banks investments in these loans would have been protected. But we choose to give the money to the banks, which solved nothing.
]]>It just shows how overpriced that housing prices got . Even with good credit at the time of purchase I think too many house buyers were simply over paying . That over paying could've been used on down payments or another couple years of payments .
]]>As I chose the same namesake on the Housing Bubble Blog by Ben Jones, it is Ben and his blog that hasn't "pulled any punches" these past years as the enormous train wreck that is the housing bubble has upended the American, and by extension, the global economy.
Exotic mortgages, derivatives, realtards, homebuilders, and people like Casey Serin have all combined to make the situation one gigantic clusterfuck train wreck.
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