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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]

One in Ten Mortgage Borrowers Will Lose Their Home To The Bank 260310banner2 [2]


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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/

[3] Bank of America to settle with Fannie Mae, sell mortgage assets: http://www.prisonplanet.com/bank-of-america-to-settle-with-fannie-mae-sell-mortgage-assets.html

[4] Geithner Sees “Economic Improvement” As Mortgage Delinquencies Hit All Time High: http://www.prisonplanet.com/geithner-sees-economic-improvement-as-mortgage-delinquencies-hit-all-time-high.html

[5] Mortgage Investors To Bank Of America: We’re Pissed And We Want Our 47 Billion Dollars Back: http://www.prisonplanet.com/mortgage-investors-to-bank-of-america-we%e2%80%99re-pissed-and-we-want-our-47-billion-dollars-back.html

[6] Couple Lives In $1.3 Million, 4,900 Square Foot Home For Five Years Without Making A Single Mortgage Payment: http://www.prisonplanet.com/couple-lives-in-1-3-million-4900-square-foot-home-for-five-years-without-making-a-single-mortgage-payment.html

[7] Same Person Forged Billions of Dollars Worth of Mortgage Documents for Bank of America, Wells Fargo, U.S. Bank and Dozens of Other Lenders and Shells: http://www.prisonplanet.com/same-person-forged-billions-of-dollars-worth-of-mortgage-documents-for-bank-of-america-wells-fargo-u-s-bank-and-dozens-of-other-lenders-and-shells.html

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