Past Due: 7.3 Million Mortgages
The housing valuation and mortgage servicing company, Lender Processing Services (LPS), tracks the number of delinquent mortgages and says that as of the end of March 2010 7.3 million U.S. households were late on the mortgage or had actually been foreclosed. According to LPS over 12% of the active loans in the U.S. are now delinquent or in default. Distressed mortgages are up 19.3% from a year ago.
The number of bank-owned properties at the end of March was at the highest levels since 2008 when there were at least 675,000 REOs in the country. Now there are 1.09 million bank-owned properties, at least.
On the good news side, delinquencies in March were down 10.3% compared to February. The foreclosure rate dropped 3.27% in March from the month before. LPS believes the Home Affordable Modification Program (HAMP) is making a positive difference because more property is going from 30 or 60 days late to current than in the past.
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[...] This post was mentioned on Twitter by Bob Massey. Bob Massey said: New blog posting, Past Due: 7.3 Million Mortgages – http://tinyurl.com/25u6nuw [...]
Bob, what is the estimated value of these homes? Do you know if they are mostly high end? Just curious, a co-realtor told me now there are a flux of high end properties and all the stuff under 250K is done with.
Bob, I’d like to know the same information as Liz. I’ve been working on REO’s in south FL and all of my cash offers are getting ignored. Banks are selling REO’s for close to adjusted retail value (i.e., approx. 70-80% of pre-bust market values). I’m consistently being told by Realtors that there is no room for an investment flip in any price range REO because the bank will either wait it out OR the market is good enough that people are beginning to purchase.
Dear Bob,
I personally appreciate all the information I have been provided through your e-letters. Thank you once again, and let us keep on going to the top. by helping people under these circumstances.
Best,
Cecil8ia
[...] foreclosed. According to LPS over 12% of the active loans in the U.S. are now delinquent or… Click here to read the rest of this story Arizona and Florida Release Hardest Hit Fund Plans Florida and Arizona are among the hardest hit [...]
[...] foreclosed. According to LPS over 12% of the active loans in the U.S. are now delinquent or… Click here to read the rest of this story Arizona and Florida Release Hardest Hit Fund Plans Florida and Arizona are among the hardest hit [...]
Liz and Tim,
There is no way to know the exact range of those expected foreclosure houses. They are expected to be more high end that what has been over the last couple of years because of the number of Option ARMs and ARMs in general that are due to mature in the next 12-36 months. The high end opportunities should increase along with the failure rate of those notes. It is increasingly difficult to get pretty REOs at a price that you can flip them and make a profit. The REOs that need work are where the best opportunities are. My suggestion is that you work the pre-foreclosure market aggressively and get them as a short sale rather than as an REO. Although they tend to be a lot of work, they can be very lucrative. When you work pre-foreclosures you will find all types of deal opportunities. They are not all pure short sales. I am working one now that will be extremely profitable and I am able to do it without a short sale even though I found it through the foreclosure notices. I also suggest that you develop a very active relationship with as many real estate agents as you can. They know about the deals earlier than anyone else and you may be able to “steal” and REO before anyone else knows about it. For more information on how to work with agents check out my Agent Magnet program.
Bob
Glad to do it, and thank you for continuing to read!
Bob,
Thanks for the information…appreciate it!
Tim