1 in 10 mortgagees to lose house


Inquiring minds are reading a new study by NewObservations.net is predicting that over the next two years 10% of Mortgage holders will lose their home. This will mean another 5 million homes in the foreclosure inventory…to go on top of the huge shadow inventory already ‘there’. The important thing to realize is this article is speaking to the national rate. California’s will be much higher.

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…

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.

For the entire article, please click on:

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