RE and economic charts: LPS: Average Loan in Foreclosure Is Delinquent for Record 599 Days

Wednesday, August 31, 2011

LPS: Average Loan in Foreclosure Is Delinquent for Record 599 Days

[mEDITate-OR:
miss "the Game" that's goin on..., out there.
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New delinquencies are down
foreclosures are about the same
and long-term delinquencies are huge.
They be play'n wid U.S.
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in-foreclosure rate at 4.11% is barely below the peak rate of 4.21% in March 2011.
There are still a large number of loans in this category (about 2.16 million)
- and the average loan in foreclosure has been delinquent for a record 599 days!
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what is happening is a large number of loans each month
have been moving from "in foreclosure" back to "90+ days delinquent" status
- so the number of loans "in foreclosure" hasn't increased recently.
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the surge in shorter duration loans.
This is probably being driven by two factors:
1) older borrowers are hoping to pay off their loans as part of their retirement planning and are taking out 15 year mortgages, and
2) many jumbo borrowers are probably taking out 5 year loans with a balloon payment since 30 year jumbo rates are much higher.
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So, let's U.S. ask This Question:
Where are the loans located that are being moved back from "foreclosure" into "90+ days delinquent"
This matters, a lot.
Bcuz, if this is in states where foreclosures are selling to all cash investor buyers - like AZ and Nev
that might explain why the numbers of "foreclosure sales" appears to going down.
IF, however, this in the states where their are huge backlogs - such as Fla & NYC
that simply means that it will take them MUCH longer to work through the problem.
Very different pictures, very different results - on the ground.
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