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Luxury Foreclosure Trends Report: March 2010
National Luxury Foreclosure Trends
A Record 2.8 Million Foreclosure Filings Were Reported In 2009!
The foreclosure tsunami that began with faulty sub-prime loans will likely continue to ripple out to higher-priced segments of the housing market. In 2010 as a growing wave of Option-ARM loans recast with higher monthly payments and increasing delinquency rates for prime mortgages which translates into higher foreclosure activity for traditionally low-risk borrowers.
High-end properties are falling into foreclosure; and foreclosure activity on adjustable rate mortgages represented nearly 50 percent of the total U.S. foreclosure activity by the fourth quarter 2010 said Daren Blomquist, Managing Editor of RealtyTrac.
As of January 2010 Jumbo Prime Mortgages by far had the highest year over year deterioration for both delinquencies and foreclosures up almost 180 percent. From the same time period a total of 2.9 Million loans nationally are 90+ days late with the average loan 272-days late up from 2008 when the average loan was 204-days late.
The Foreclosure evolution: As of January 2010 there were 1.8 Million loans in the foreclosure pre-sale status with an average of 410-days delinquent for an average loan in delinquency up from 260-days in 2008, partly because of the foreclosure moratoria, loan modification, loss mitigation efforts and a backlog of foreclosures already in the system. What this means is a total of 8,472,618 mortgages are non-current or bank owned (REO) phase. Source: LPS Mortgage Monitor.
Top Areas for Mortgage FraudMaryland Ranked 5th In Mortgage Fraud Cases!
GREENBELT, Md., March 9, 2010 (UPI) -- Authorities Tuesday arrested a Maryland man in what the Department of Justice called a massive mortgage fraud scheme that left victims homeless. Rolando Alonzo Cousins, 31, of Bowie, Md., was indicted Monday on charges of conspiracy to commit mail fraud, mail fraud and money laundering, the Maryland U.S. Attorney's office said in a news release. Prosecutors said the alleged scheme involved promises to help homeowners avoid foreclosure, keep their homes and repair their credit, but ended up leaving victims homeless and with no equity.
BALTIMORE, Maryland - Maryland Mortgage Fraud Task Force members highlighted their progress and plans, including the filing of criminal, civil, and regulatory actions against more than 250 individuals and companies in 2009. With the additional resources now devoted to mortgage fraud, we expect even more cases to be prosecuted in 2010.
Priorities include pursuing mortgage brokers, lawyers, accountants, appraisers and other professionals who generate fraudulent loans as well as con artists who market fraudulent ‘foreclosure rescue' and ‘loan modification' services." "The FBI is committed to collaboration with our Mortgage Fraud Task Force partners in order to detect, investigate, and prosecute criminals who perpetrate mortgage fraud in Maryland," said FBI Special Agent in Charge Richard A. McFeely. Download The Common Red Flags:
https://www.efanniemae.com/utility/legal/pdf/commonredflags.pdf
Prince Georges CountySevere Foreclosure Hot Spot
Notice of Foreclosure Sales: Statewide a total of 8,311 notices of foreclosure sales were issued in the fourth quarter of 2009. As a result, Notices of Foreclosure Sales grew by 43.4 percent over the third quarter and grew by 576.8 percent over last year.
According to RealtyTrac property foreclosures in Maryland increased to 16,788 events in the fourth quarter, up 13.4 percent over the previous quarter and up 67.4 percent above last year. The states overall foreclosure rate is one in every 138 homes. That's 6.1 percent above the national average. In 2009 Maryland reported a total of 43,248 properties with foreclosure filings, up 33.7 percent over the previous year.
That means in 2009 one in 54 housing units received a foreclosure filing, ranking the state 13th highest nationwide. Prince Georges County has 319,922 total housing units and recorded a total of 13,412 foreclosure filings for 2009, or 31 percent of the statewide foreclosures while accounting for only 13.8 percent of the overall housing units in Maryland. That means that one in every 24 Prince Georges County home received a foreclosure filing in 2009, the highest concentration of foreclosures in Maryland.
In the fourth quarter of 2009 Loan Defaults in Prince Georges County accounted for 26.8 percent of the defaults statewide, by far the largest share among the State's twenty-four jurisdictions. Severe Foreclosure Hot Spots include: Hyattsville, Riverdale, Bladensburg, Brentwood and Beltsville. Source: DHCD Property Foreclosures in Maryland Q4 2009.
Prepared By:
Aaron Rice, CDPE, CLHMS, CRS, GRI, SHS
443-244-0051
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