Foreclosures are Down as Mortgage Delinquencies Rise

By
Real Estate Agent with Colonial Real Estate Group - The Good House People, LLC

There is so much conflicting information about the housing market these days. We've been hearing for months now that foreclosures are starting to level off, and the housing market is stabilizing. Then information such as in this article from DSNews comes out: http://www.dsnews.com/articles/lps-report-shows-an-about-face-in-delinquency-and-foreclosure-movement-2011-05-17.

The article states that delinquncies are up. It also tells us that homes in foreclosure are down. This information completely turns upside down all the data that was gathered during the first quarter of this year.

Agents like me that are on the front lines of the distressed housing market believe that the banks are having a hard time reporting the actual number of non performing loans due to the fact that they do not want to spook their shareholders. But isn't the first step in solving a problem is to admit that you have the problem?

Anecdotally, the conversations I'm having with clients and other agents specializing in distressed properties all believe that we have a second wave of properties that are about to hit the market this year. Very quietly, the banks and servicers are beefing up their foreclosure and short sale departments in anticipation of this increase in activity they see coming. In the artcle linked above, the data has been culled from an audit of 40 million loans. The numbers are compelling.

If you are behind in your mortgage payment, contact the banks immediately. The earlier in the process that you get the lender involved, there's a greater chance of minimizing the long term damage to your financial future. Get a local expert involved early in the process as well. With the new MERS requirements. there is absolutely no up front cost for the services of a local expert. Also, make sure you are dealing with an expert. That means they have experience in closing these distressed sales, and can provide you references. The distressed market is constantly changing, and it is imperative that the person you pick to help you is sharp and current with this market right now.

If you live in the Washington, D.C. metropolitan area (Virgina, Maryland, And Washington, D.C.), and you are behind in your mortgage, you can visit my websites (www.thegoodhousepeople.com and www.livealexandriava.com) and develop a plan of action. Having an expert and a plan will calm you down and provide the realistic and necessary hope to help you get through this very difficult time. It's going to get worse before it gets better, despite what the banks are telling us - and not telling us.

Comments (3)

David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Funny that the data that is so utterly critical in making good decisions seems constantly skewed or flat left out of the equation. What do they say? Good data in makes for good decisions out bad data in makes for bad decisions out. How can we ever get out of a mess, and make goiod decisions, if the information we rely on is never truthful and sometimes not even part of the equation???

Very frustrating!

Personally I believe we could take about 5-10 highly seasoned real estate and finance experts and get out of this mess quicker and cheaper than leaving it the hands of the complete bafoons on capital hill. Their answer to everything is increased legislature and constantly changing the rules of the game??? As we ALL know this hasn't done anything for the industry other than increase costs to consumers, drive many smaller (and better) shops out of the business and further delay any semblance of a recovery.

On the other hand, even though all of the above is accurate you can make the arguement that the sheer number of foreclosures has dropped but the number of delinquencies are rising as there is a new wave of foreclosures pending. **This comment on potential fact does not negate the previous ones regarding no one can make a good decision with bad data.

 

Have a great day and thanks for the post

 

May 19, 2011 03:10 AM
Markita Woods NMLS#196099
American Financial Network - Woodbridge, VA
Queen of Mortgages - FHA, VA, Conventional, USDA

Mike I agree the information is completely turned upside down.

Honestly people do not who or what to believe.The numbers can be skewed to make anything look better or worse.

May 19, 2011 03:15 AM
Mike Shearer
Colonial Real Estate Group - The Good House People, LLC - Alexandria, VA

David, thanks for the reply. I agree with you totally about Capitol Hill. How about this for a novel idea: Let the market forces work! If you made a bunch a loans to people who cannot pay them, then come up with a plan to either modify of foreclose within a prescribed period of time. And then stick to that paln. Wasn't this supposed to happen with HAFA?

It's a real problem when people figure out that they can stay in the property for an extended period of time without paying the mortgage. 52" inch HD wall mounted TV's and new top end SUV's start popping up all over the place.Taxes, HOA's, and mortgages aren't paid, but these high end consumer goods provide the poor victimized souls "comfort".

Do you feel like you're travelling further down the rabbit hole?

May 19, 2011 03:29 AM