Monday, March 30, 2009

Moratoria = Delinquencies

The FBs of the world are learning the rules of the game quickly. File this one under perverse incentives.

Wall Street Journal:
Mortgage Defaults, Delinquencies Rise
By JAMES R. HAGERTY

Defaults on home mortgages insured by the Federal Housing Administration in February increased from a year earlier.

A spokesman for the FHA said 7.5% of FHA loans were "seriously delinquent" at the end of February, up from 6.2% a year earlier. Seriously delinquent includes loans that are 90 days or more overdue, in the foreclosure process or in bankruptcy.

...
As of January, the cities with the highest FHA default rates in January were Punta Gorda, Fla., at 18%; Detroit, 15.6%; Flint, Mich., 15.1%; Fort Myers-Cape Coral, Fla., 15%, and Elkhart-Goshen, Ind., 12.1%, according to a HUD report.

Foreclosed FHA homes owned by HUD totaled 39,687 in January, up 22% from a year earlier.
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Delinquencies are not "curing" so expect more and more to default. Get ready for another leg down. Or two truly stunning legs as our government gets schooled as to the dangers of touching the goods.

7 comments:

Northern Renter said...

To truly understand the scope of this problem, we must realize that the subject is widespread and then dive right into the centre of this subject. Too often there are layers of obfuscation that must be quickly ripped asunder. Injection of liquidity could ease the pangs involved in a relevant delinquency and satisfy the need for a home that is felt by many members in your audience.

Thank you and goodnight.

NR

segfault said...

First?

7.5% of all homes with FHA mortgages are in foreclosure? That number alone is pretty staggering.

Northern Renter said...

Shit. I forgot to say first.

NR

segfault said...

NR beat me by one minute...

Rob Dawg said...

Sorry Seggy but NR also beat you hands down on snark content. He wasn't shy about looking under the skirt and getting to the bottom of the issue.

Cobradriver said...

"Punta Gorda, Fla., at 18%;"

I am in Port Charlotte,right across the river. The number of empty homes that have not been NOD is every bit as bad as the HUD default rate. Mom and Dads neighbor across the street held on for three years. Instead of a NOD the bank told him to keep the place up,pay the utilities and he could stay there rent free for a MINIMUM of 2 years before they go after him. He will end up filing BK. Went from 25.00/hr to 10.

Out of 10 homes on the street 3 still have the original owners from 5 years ago. All those are owned outright. This is an established hood with the average home age of 20 years...

Chris

Rob Dawg said...

As you might recall my mom lives about 15 miles directly west along at the end of the Tamimami.

So, tell me. Are you seeing snowbirds turning into year round or empty houses year round as they stay up north?