Report Released By Mortgage Bankers Association On Homes Repossessions Causes Apprehension

Posted on June 12, 2008
Filed Under Repos | Leave a Comment

The recent report released by Mortgage Bankers Association has caused a feeling of fear and apprehension for the future trend. California and Florida is accounting for most of the troubled numbers.

Across the country 6.35% of all the house mortgages were lagging behind a month but had not been repossessed upon. It was an increase of 5.82% from the fourth quarter of 2007 and 4.84% jump from the first quarter of the previous year. An extra 2.47% of the mortgages were in foreclosure as on 31^st March. This was a rise of 2.04% from 1.28% noted at the end of March 2007.

Jay Brinkmann of the association commented, “the problems in California and Florida are extraordinary and they are the main drivers of the national trend.” California holds 13% of all the national mortgages but accounts for 21% of the houses that have entered foreclosure during the last quarter. Florida has 8% of the nation’s mortgages but is responsible of 15% of those being foreclosed upon. The numbers of all three categories – those loans first entering foreclosures, those already in foreclosures and those in delinquency reached an all time high since the last 29 years.

The point to be noted is that although the foreclosure crisis started with sub-prime loans it has now touched the prime loans also. Of all those loans that entered foreclosure during the first quarter of this year, 42% emanated from prime loans. 50% came from sub-prime mortgages. The loans covered by FHA insurance accounted for the remaining 8%.

In the first quarter of 2008 in California the delinquency number dropped by 5.26% from 5.39% of the previous quarter. But according to Brinkmann in California the chances are high of these delinquent loans entering foreclosure as compared to other states. This is because of the severe decline in housing market in California. The percentage of state loans, high jumped to 3.13% as noted on 31^st March. Three months previously it was 2.23%.

The overall picture is that the real estate market is being flooded with foreclosed houses making the outlook worse for the real estate market. With the release of the report, housing shares took a tumble. Major building stocks dropped by 0.8% – it being the lowest since March. At a particular point it had plummeted to 3.7%.

Ohio, Michigan, Indiana and 20 other states saw a decline in foreclosure numbers. But the increases in California, Nevada, Florida and Arizona off set the gains.

Search Repo Homes

• Arizona Repo Homes
• California Repo Homes
• Florida Repo Homes
• Georgia Repo Homes
• Michigan Repo Homes
• Ohio Repo Homes
• Texas Repo Homes
• Repo Homes In Other States

Popularity: 4% [?]

Related Tags

Nobody landed on this page from a search engine, yet!

Comments