More Foreclosures To Come?

By
Mortgage and Lending with CNN Mortgage

A struggling economy and worsening labor market ranks Phoenix-Mesa-Scottsdale's housing market number three of the top ten high risk housing markets for mortgage default according to a first quarter 2009 report from First American Core Logic.   The report tracks house price depreciation/acceleration as it relates to housing affordability.  According to the report, the top three best places to own real estate from a low risk perspective are 1:Austin - Round Rock, Texas, 2:Omaha - Council Bluffs IA/NE, and 3: Wichita, KS.  The report includes a few predictions on new foreclosure activity based on lender servicing data.

Interest Rates for July 13, 2009

Poor economic numbers have reversed the upward trend for mortgage interest rates over the last two weeks. Dow is recovering some of last week's losses this morning up 150 pts.  MBS prices relatively flat.

Conv/Conf 30Yr Fixed*  5.375%

Conv/Conf 15Yr Fixed*  4.750%

FHA 30Yr Fixed*  5.250%

* Above Conventional rate quotes are as of  7/13/09 on a Conventional $165,000 loan amount, primary residence at 80% loan to value, with a 720 FICO score.  $1,200 in lender fees and 980 in title charges (title charges may vary).  FHA Quote assumes a $125,000 loan amount and a 680 FICO score, and a 96.5% LTV. Documentation of income and assets required.  No origination or discount points.

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Rainer
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Sandra White
John L Scott Real Estate - Port Townsend, WA
Experienced Residential Resale Broker

It seems that all the 2004 to 2006 adjustable rate mortages should be due now for an increase with little possibiltiy of refis for those people whose homes have lost a lot of their value, so looks like we will have another wave of foreclosures to deal with. 

Jul 19, 2009 10:11 PM #1
Anonymous
Anonymous

Sandra,

Based on the servicing default numbers coming out of the MBAA, I think there are more REO homes that will come on the market over the next year.  It is not across the board though, the REO inventory seems to be drying up in a few of our markets and I am not expecting (hoping) a flood of new REOs.  Housing starts were even up in June nationally. 

There is a growing interest in low cost foreclosure mediation which has been promoted by the Center for American Progress.  This may be a good resource for homeowners that need some help.  According to the article the mediation is available to homeowners for about $400.

Jul 20, 2009 09:29 AM #2
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Rainer
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Julie Messina

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