Real Estate Blog - People Facing Foreclosures in Broward County FL-42 New Mortgages were Subprime Loans in 2006

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People Facing Foreclosures in Broward County FL-42 New Mortgages were Subprime Loans in 2006

People Facing Foreclosures in Broward County FL-42 New Mortgages were Subprime Loans in 2006

My wife told me she was surfing on The Sun Sentinel main page this afternoon and found an interesting link to a graphic search feature that allows you to view a map of Broward County FL.

These figures show you that the percentage of people facing foreclosures more than tripled last year and in 2006 .....42 percent of new mortgages were subprime loans.

In red.... you will see all the hot spots.

Check out >>> this link if you are interested in seeing these graphic figures.

For more information please contact Neal The Real Deal Bloom-CRS-Realtor® /RE/MAX Premier Associates.

2500 Weston Road ,Suite 103

Weston FL 33331

(954)608-5556

Posted by Neal Bloom-Realtor ® Assoc.-CRS-Weston FL on 04/17/2008 07:06 PM

Comments (11)

facing, forclosures, broward county, fl, new mortgages, subprime loans

Originally posted at: Weston Florida Real Estate Blog, Neal"The Real Deal"Bloom : People Facing Foreclosures in Broward County FL-42 New Mortgages were Subprime Loans in 2006

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11 Comments on People Facing Foreclosures in Broward County FL-42 New Mortgages were Subprime Loans in 2006

APR

2008

Fascinating. I believe you discovered a nexis.

And they said we didn't know what we were talking about.

Neal. This could be a first step in documenting mortgage companies that perpetrated mortgage fraud. I've long contended that the feds could easily identify the banks, mortgage companies, brokers/investors who sold those loans and connect them to the defaults.

When is is going to happen???

Lenn,

You're probably right...I wonder if anyone actually compiled a list. It is pretty interesting to actually see it in a visual

Neal, I know that Florida has a high number of foreclosure, and a large part of the blame can be put on Subprime Mortgages. But 42% of new mortgages being subprime seems REAL high to me. I think I would want to see a little more detail on how they obtained at that figure.

That interactive map was great. It covers all the areas. I wish we had soemthing like this. I think Lenn's idea makes a lot of sense but I also have this big brother feeling that it might not be handled well. I would want to see that the innocent are protected. Be it homeowner or lender. But I also takes two to couple dance (had to correct that) as I have line danced,lol

APR

2008

George,

It's not even the blame it's these figures which I also knew were quite high but didn't realize how high they were.....42% tells me a lot just as Lenn said. I'm wondering if anyone is going to be or already has started to investigate these. I know everyone wanted to live the American dream of owning a home but I wonder fron the 42% how many actually lived in their home and didn't just by for investment reasons.

William,

I am glad that at least my city of Weston wasn't as high as other areas such as Miramar....but those areas hit the hardest are going through a tough period right now and I hope there is some sort of relief. I'm not sure if the banks are just sitting back and letting these slip through the cracks or are they pursuing any...most of them are so overwhelmed with the mess that there is probably little time for them to concentrate on going after them...maybe later in the future it will come back and bite them.

Neal... I agree with George..... these numbers seem to high.

But in regards to fraud and all of this talk about subprime. Here is my take on the whole thing. In Florida and California, a good part of the mortgages obtained were stated loans and no doc loans. It's almost impossible to commit fraud on a no doc loan, because you don't share anything, zero, on the application. No job, no assets, nothing. But you usually needed a credit score of 680 or higher.

Now, stated loans is another thing... yes, there was some fraud in this section of mortgages. But a lot of it was also greed of investors and wall street. They even had a loan out there was called... stated loan for W-2 people. Meaning, even if you were paid W-2 and fit the guidelines, you could just state your income to make it work. Now, the only checks and balances on this was that lenders required a job search check on incomes. They had to use a service to put the type of work that you did, to see what the salaries were...or income. The problem with this is if you had a job that had a wide range, from 50 k to 90 k.... even if you only made 55 k, they would put 90 k down. At this part of the process, the consumer is now way over their head in payment. This is a fine line on fraud, but the investors got greedy and left themselves opened for this.

Overall, it would be interesting to see the break down, of these foreclosures, which loans were stated. I bet you 50% or more......

Neal - Jeff hit the nail on the head with his assessment on the lending practices of the recent past. Personally, I think less than 5% of the loans I did were stated and/or no doc. What may be even more telling is when all of the Pay Option ARMS/Pick Your Payment/Teaser Rate/Interest-Only loans get re-cast and the REAL payment hits....that's when the dung could really hit the fan for some.

APR

2008

Jason - I agree with you and Jeff there! I think these Pay Option ARMS/Pick Your Payment/Teaser Rate/Interest-Only loans are the next to surface and create a mess. My biggest challenge right now are the phone calls I get from borrowers in these loans. They were put in these loans by brokers and even lenders themselves. They only made the minimum payments whether they didn't understant the product or just chose to. Even after 8 months, they want out. Most of these borrowers did loans above 80% with no income verification so the margin is even higher than normal (3.5 to 5% margins) and the fully indexed rate right now is between 7.5 and 8.8 if you add to the index (using the MTA). They've already eaten the equity by making the minimum payments and adding declining market values. Also, the killer is most have a 3 yr pre pay penalty which could be $10,000 - $20,000 just to payoff the loan. When going through the possibilities to help, I ask if they can afford to at least make an interest only payment. When they tell me they can't even afford the interest only payment you've got trouble and I have nothing left to do for them. If they can't afford to interest only at 8%, then they can't really afford a 30 yr fixed at 6.25% nor would they qualify.