- Prison Planet.com - http://www.prisonplanet.com -

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

Posted By admin On May 21, 2010 @ 3:57 am In U.S. News | Comments Disabled

Michael White
Implode-meter blog [1]
Friday, May 21st, 2010

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.

Full article here [1]

[2]


Article printed from Prison Planet.com: http://www.prisonplanet.com

URL to article: http://www.prisonplanet.com/one-in-ten-mortgage-borrowers-will-lose-their-home-to-the-bank.html

URLs in this post:

[1] Implode-meter blog: http://blog.ml-implode.com/2010/05/one-in-ten-mortgage-borrowers-will-lose-their-home-to-the-bank/

[2] Image: http://purewaterfreedom.com/

Copyright © 2013 PrisonPlanet.com. All rights reserved.