Here are just some quick facts from a member call I was on recently. 

1 out of 10 prime borrowers are delinquent
4 out of 10 sub-prime borrowers are delinquent

Continuing increase in delinquencies, foreclosures, defaults.

Reverse mortgages could be the next subprime...which in my opinion does not seem to dominate NM so should not be much of a problem here.

Lender pursue mortgage payoffs long after homeowners default.

This type of mortgage recovery rose 48 percent to a record $1.01 billion in the first nine months of last year. Now that lenders have had a chance to 'catch up' they are now pursuing deficiencies.

Luxury Homes Deliquency 

Faster growing number of deliquent loans are loans over $1 million. Reasons: Very little
purchase money, no refinance money for loans at these amounts.

12% of US Mortgage of $1 million and larger were late this fall, twice the rate for loans under $350,000 and nearly triple the default rate on million dollar mortgatge 12 months earlier.

HAFA (Home Affordable Foreclosure Alternatives)

FHA opens HAMP for borrowers at Defaults door...this may help prior to default. Option for borrower.  Do not have to be behind to get a HAMP modification if the FHA borrower is facing "imminent default" meaning they are current or less than 30 days late.

HAFA program begins April 5, 2010 Pertains Non government FNMA, Freddie, VA, FHA...Starts with HAMP

Posted by NMWelcomeHome Team Associates (505) 886-1432 on
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Sellers need to understand deficiency judgments before they list their house for sale as a short sale! CDPE designees like you and me and our clients know this, but I'm sure some other sellers are in for a big bad surprise down the road!!!

Posted by rich cederberg on Friday, February 5th, 2010 at 11:31am

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