MORE THAN HALF OF MODIFIED LOANS DELINQUENT WITHIN SIX MONTHS

I found this information interesting this morning from the California Association of Realtors. It is an insight into how messy the housing market really is right now. A few years ago when I first started selling Real Estate in Long Beach; the company I worked for was pushing people into loans they could not afford. Once I saw what was happening I left... it only took about two weeks to figure this out.

Real Estate like many careers attracts both the good and bad. Many agents just care about getting the job completed fast and getting paid. Many will not show homes if the commission is too low.

I feel it is important to take care of the client and when you do it all works out. When working with a client I often have them explain what type of loan they are getting to hopefully keep them out of hot water. If they cannot afford it... the should not buy. If the home is not right... they should not buy...

It is very important to work with an agent who keeps your best interest in mind. At all times!

So, all they being said... take a look at the following information.

New data shows that more than half of loans modified in the first quarter of 2008 fell delinquent within six months."After three months, nearly 36 percent of the borrowers had re-defaulted by being more than 30 days past due. After six months, the rate was nearly 53 percent, and after eight months, 58 percent," said U.S. Comptroller of the Currency John C. Dugan. A report scheduled to be published later this month will show continued increasing delinquencies and foreclosures in process for all first-lien mortgages held by the largest national banks and federally-regulated thrifts, Dugan said. However, new foreclosures decreased by 2.6 percent from the second quarter.The mortgage metrics report covers nearly 35 million loans worth more than $6.1 trillion, or about 60 percent of all first-lien mortgages in the United States. The quarterly reports are unique in that they are not merely surveys, but instead consist of validated, loan level data using standardized definitions for prime, Alt-A, and subprime mortgages, and standardized definitions for loan modifications.

I hope you found this interesting as well.

Have a great day,

Jeff

http://www.jeffhallrealtor.com/

jeff@jeffhallrealtor.com