This is amazing. The Mortgage Bankers Association keep statistics on foreclosures, payment defaults etc. As a Certified Distressed Properties Expert, I get regular updates on this information. When I received these numbers, I just had to share them!
First, I would like to explain the definitions these numbers use. FORECLOSURE - Papers have been filed, sherrifs sale is probably scheduled. DEFAULT - payments are 30 days or more late. DEFAULTED - The combined total of mortgages already in foreclosure PLUS those that are now in default.
As of March 5th 2009. . . . . . . . . . . .
3.3% of all mortgages are in foreclosure. 7.88% are in default. Adding them together 11.18% have defaulted!
"Let's blame the sub prime loans for this", I hear you say. "We have good credit and it would never happen to us". Well, how about this ..........
6.94% of PRIME loans are in some kind of default! Yes, thats right, people with good jobs, good credit, money down - People from every walk of life are defaulting.
I am sharing these numbers to show that all of us could know someone that is in a distressed situation. We call them distressed properties, but I promise you - these properties are owned by some VERY DISTRESSED HOMEOWNERS.
Let's take a quick look at FHA loans: 2.43% in foreclosure, 13.73% in default, that's 16.16% defaulted. Notice how few are in foreclosure compared to distressed? This is because FHA do not want to become asset managers and will work with homeowners. Many other types of loan also have investors that will work with homeowners, but you need a shortsale expert to help you through this minefield.
If you are a homeowner in distress, PLEASE contact the author of this post by email so we can put you in contact with your local shortsale expert. There is no catch here. There is no charge. Holders of the Certified Distressed Properties Expert designation are trained to try and help you keep your home before we help you minimize damage to your credit by negotiating a shortsale.
Nigel Chapman, 515 321-8094 Nigel@RealEstateConcepts.net
Read all my blogs at www.DesMoinesBlogger.com
Nigel Chapman, Managing Partner, RE/MAX Real Estate Concepts, 550 36th Ave SW, Altoona, IA 50009. Each office independently owned and operated. Equal Housing Opportunity. Licensed to sell Real Estate in Iowa. http://www.NigelC.com
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