Mortgage default rate at highest level since the financial crisis

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Real Estate Agent with (408) 425-1601 CA bre 1519182

Sam Shueh

Realty One Group

Cupertino, Ca

 

 

National Association Home Builders recently mentioned that the mortgage default rate is on the rise again-highest since the Great Recession. With average mortgage interest rate of 3.58% and full employment how possible is it we are seen a rise in default rate? The speaker did not quantify the rates. As late as 2010 most lenders claimed everything was fine there was nothing to worry about. Shortly the entire America was flooded with bank owned properties in every town.  

My personal observation is there are some bank owned properties surfacing again locally. Auction sites are again advertising REO properties and had very ambitious goals wanting to get better than market price. I have worked and showed a few looking for basement bargains. They mostly require a 5% service fee from the bargain hunter.   

Housing Default Rate is on Rise since the Great Recession

Sam Shueh (408) 425-1601

    Silicon Valley Realtor    

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Sam Shueh Realtor

 I've called San Francisco South Bay home for over many years. We love this area and all it has to offer, and I enjoy sharing what I know about homes.  I documented in several books about Silicon Valley history. I have much expertise in real estate...please give me a call.  

Prediction of 2018 Silicon Valley Real Estate 

 Silicon Valley Realtor Sam Shueh Website   (Four-O-Eight)  425-1601  

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Rainmaker
414,570
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

There are people out there who still lose jobs, or quit jobs, or find out due to unforseen circumstances that they can no longer afford their home. We are seeing the older generation passing and this is creating issues for the estate to sell the family home, sometimes having to keep the loan current themselves to get the property to sell.

Sep 02, 2019 04:49 PM #1
Rainmaker
5,086,053
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Sam Shueh there are many who can no longer afford their mortgage.... they may have health care expenses and they are not white collar workers... many have lost their jobs and/or have multiple jobs in an attempt to maintain that mortgage.... doesn't always work well.... 

Sep 03, 2019 03:47 AM #2
Rainmaker
4,136,384
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sam, this is sad news truly, and hope we don't see what we saw back in 2008.

Sep 11, 2019 07:21 AM #3
Rainmaker
529,330
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Interesting. I know that sales prices have gone down in San Jose, so that means some home owners are under water.  Even with low mortgage rates, housing is so expensive.

Sep 11, 2019 08:19 PM #4
Rainmaker
1,712,229
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Plus ca change - plus le meme!  We live in cycles and they just keep turning from one part of the cycle to the next 

Sep 17, 2019 11:55 AM #5
Ambassador
2,087,733
Michelle Cherie CarrCrowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Sam,

I'm curious, do you know if the NAHB is referring specifically to default rates among new home buyers? I haven't seen mention of this elsewhere.

Oct 27, 2019 07:35 PM #6
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