Six Months Delinquent On The Mortgage - So What?
Bad enough construction spending including improvements is down 34%...
Data compiled by the National Association of Realtors show:
In February, 5 million existing homes were sold on a seasonally adjusted, annualized rate, down 31% from the peak of 7.25 million in September 2005.
More than 4 million existing homes were on the market in February, 53% more than the 2.6 million average of the past nine years.
We told you so... about banks not sending customers delinquency notices or starting foreclosure proceedings, even afters six months of non payment.
Why? Because then the banks could not unload the bad paper on the public, as the loans would not be eligibl...
for the six month forebearance and possible refi under FHA, FHLMC & FNMA higher loan limits.
Banks are so overwhelmed by the U.S. housing crisis they've started to look the other way when homeowners stop paying their mortgages.
According to the Mortgage Bankers Association...
The number of borrowers at least 90 days late on their home loans rose to 3.6 percent at the end of December, the highest in at least five years.
Mark Rodgers, a spokesman at CitiMortgage:
"In a number of cases, we have delayed foreclosure proceedings to allow our loss mitigation teams additional time to explore potential solutions to keep distressed borrowers in their homes."
Mark Zandi, chief economist at Moody's Economy.com:
"Lenders who allow owners to stay in their homes are distorting the record foreclosure rate and delaying the worst of the housing decline.
These borrowers will eventually push the number of delinquencies even higher and send more homes onto an already glutted market.
We don't have a sense of the magnitude of what's really going on because the whole process is being delayed.
Looking at the data, we see the problems, but they are probably measurably greater than we think."
Hattip to Bloomberg.
Data compiled by the National Association of Realtors show:
In February, 5 million existing homes were sold on a seasonally adjusted, annualized rate, down 31% from the peak of 7.25 million in September 2005.
More than 4 million existing homes were on the market in February, 53% more than the 2.6 million average of the past nine years.
We told you so... about banks not sending customers delinquency notices or starting foreclosure proceedings, even afters six months of non payment.
Why? Because then the banks could not unload the bad paper on the public, as the loans would not be eligibl...
for the six month forebearance and possible refi under FHA, FHLMC & FNMA higher loan limits.
Banks are so overwhelmed by the U.S. housing crisis they've started to look the other way when homeowners stop paying their mortgages.
According to the Mortgage Bankers Association...
The number of borrowers at least 90 days late on their home loans rose to 3.6 percent at the end of December, the highest in at least five years.
Mark Rodgers, a spokesman at CitiMortgage:
"In a number of cases, we have delayed foreclosure proceedings to allow our loss mitigation teams additional time to explore potential solutions to keep distressed borrowers in their homes."
Mark Zandi, chief economist at Moody's Economy.com:
"Lenders who allow owners to stay in their homes are distorting the record foreclosure rate and delaying the worst of the housing decline.
These borrowers will eventually push the number of delinquencies even higher and send more homes onto an already glutted market.
We don't have a sense of the magnitude of what's really going on because the whole process is being delayed.
Looking at the data, we see the problems, but they are probably measurably greater than we think."
Hattip to Bloomberg.
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