Thursday, February 25, 2010

New wave of foreclosures by end of 2010 is feared - latimes.com

  • Most reports are showing that the foreclosure crisis isn't going to get better any time soon. Another new wave is expected as unemployment is taking its toll.

  • tags: foreclosures, wave

    • About 4 million U.S. homeowners are 90 days or more delinquent on their loans or in foreclosure proceedings, Moody's Economy.com says. A federal loan modification program is helping a relative few.
    • BofA holds about 1 million mortgages that are at least 60 days delinquent.
    • About 4 million homeowners nationwide are 90 days or more delinquent on their mortgages or in foreclosure proceedings, according to Moody's Economy.com
    • Trial modifications and other delays have kept many of those mortgages out of foreclosure, but by the end of this year, 2.4 million borrowers are expected to lose their homes, said Celia Chen, a housing economist at Economy.com.
    • That would be up from 2.1 million foreclosures and short sales last year and five times the annual numbers earlier in the decade.
    • their large numbers are likely to push home prices back down this year, to a bottom in the fourth quarter, Chen said. And that would make things worse for the 25% of homeowners who already owe more on their mortgages than their houses are worth.
    • 11.4% of California homeowners were 90 days or more late on their loans, according to First American CoreLogic, a Santa Ana real estate data firm. That compares with a delinquency rate of 8.4% nationwide.

I've decided that the forclosure situation is officially unreal. Nearly 1 in every nine California Homes is behind on payments! That's crazy. The sad thing is that as values continue to decline it's going to put even more people underwater. Home values are going to be even less than they were before the boom happened. Just think how much better off the housing market and economy would have been if the housing bubble never happened.

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