CNN.Money has an article on state rankings in foreclosures. It is by Les Christie, a CNN.Money staff writer. Florida Foreclosures Lead Nation
Nationally foreclosures are declining. This could be as people are getting out from under their Christmas debt they find a little more cash. Also housing sales are picking up in many areas as spring brings buyers back out.
My state, Oregon is ranked 27th with 725 filings. This averaged 1 in 2008 household going into foreclosure. This is up .55% from January of 07 and actually down 1.63% from February of 06.
Les attributes foreclosures in part to investment speculation and over production of housing and feels that the subprime ARM's adjusting could make these numbers rise. I would agree, but am concerned that subprime and speculation are being lumped together.
While I've sold my share of sub prime loans to clients who couldn't otherwise qualify for a loan, not one was for an investment property. These just never made sense. Every one of the investment properties that I have financed were with an Alt A loan. These are better priced and more lenient in underwriting. These are also the loans that are most likely being defaulted on with the investment properties.
ADDITION: I came across another article with more depth and a slightly different take. The Forecast On Foreclosures. More doom and gloom with a 3 year window. I would agree taht within 3 years all of the 2-3 year sub prime loans will be cleared out, but that doesn't cover all of teh 5 yr. ALT A ARMS...
Larry Morris is a Certified Mortgage Planning Specialist and Certified Mortgage Coach with Golf Savings Bank in Beaverton, Oregon. He specializes in USDA Guaranteed Rural Home Loans, FHA Purchase and Refinance, FHA 203k Rehab loans, FannieMae HomePath loans and conforming purchase and refinances in the states of Oregon, Washington, Idaho and California.
He can be reached at 503-421-0096, or larry@PDX-Mortgage.com.
Either the sky is falling or my head is in the clouds. Just looked down. My feet are on the ground. Yep. They are there. I am only 5'8. Maybe just one low cloud.
R
Randall: A glimmer of hope, but way to soon to be a trend. Especially if you live in Florida or one of the other high impact states. More than anything, I'm really learning that National news is nothing more than an average of many local events.
Rich: You obviously are on the "dirty" side of this. You get to see the lives that are torn apart. What is your take? Are you seeing mostly owner ocupied or investment? Good people making bad decisions or poor people being preyed upon?
While AZ is not at the top of the list, 3,116 filings in Feb, up 44% from same month last year, is not a good trend.
So many ARMs and creative mortgages have been coming due this last year it seems. Oregon has had it share of economic problems that has helped fuel this trend. On the plus side it might get people to rethink in the future that they can not have total security and only pay the interest on their homes while the economy is still fighting to breath.
Good post