By William Hudson
CoreLogic’s April 2016 National Foreclosure Report shows that foreclosure inventory declined by 23.4 percent and completed foreclosures declined by 15.8 percent compared with April of 2015. The number of completed foreclosures nationwide decreased year over year from 43,000 in April 2015 to 37,000 in April 2016, representing a decrease of 68.9 percent from the peak of 117,813 in September 2010.
Hallelujah. At this pace, more than 425,000 Americans will be foreclosed upon this year, with untold hundreds of thousands more that will walk away, complete a short sale or modify. Since the financial crisis began in September 2008, there have been approximately 6.2 million completed foreclosures nationally. Homeowner-ship rates peaked in the second quarter of 2004, and since then there have been approximately 8.3 million homes lost to foreclosure.
This can hardly be called a recovery. The current foreclosure scenario shows a slight decrease in foreclosure. However, home ownership is at the lowest rate it has been since 1967. Less than 64% of all Americans now own a home, and it is probable that anyone who has experienced a foreclosure will not enter the housing market any time soon- if at all.
Home prices are also more expensive than they were in 2008 when the bubble popped. This is to be expected when big banks like Bank of America and Wells Fargo are offering 3% down loans with interest rate reduction incentives for buyers with poor credit. It is 2007-Part II in the making.
Miami and San Diego, that tend to be strong indicators of market trends, are showing an uptick in foreclosures and decreasing house prices. Investors are worried that the high-end condo market in Miami is preparing to implode.
CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due including loans in foreclosure or REO) declined by 21.6 percent from April 2015 to April 2016, with 1.1 million mortgages, or 3 percent, in this category.
The April 2016 serious delinquency rate is the lowest in more than eight years, since October 2007. However, there may be more to these numbers than meets the eye. As regulators start scrutinizing foreclosure practices and more class actions are filed, it is possible that these number are being “cooked” to provide a false sense of security for investors who have caused a record surge on Wall Street.
Dr. Frank Nothaft who is the chief economist at CoreLogic is reporting that there is a recovery in home prices and an improved labor market that have contributed to the drop in delinquency rates. Nothaft better conduct more due diligence. Home prices have not “recovered”, they have inflated due to cheap money flooding the housing market. The labor market is weak-enough that the Federal Reserve held off raising interest rates this week. “[T]he pace of improvement in the labor market has slowed while growth in economic activity appears to have picked up. Although the unemployment rate has declined, job gains have diminished,” the central bank wrote in its statement. Drink the red kool-aid…. it’s all good.
CoreLogic reports that the number of homeowners who have negative equity has fallen by two-thirds since its 2010 peak. That’s what happens when the central banks create yet another housing bubble, and mimics the exact financial properties of 2006-2007.
Additional April 2016 highlights:
• On a month-over-month basis, completed foreclosures increased by 0.3 percent to 37,000 in April 2016 from the 36,000 reported for March 2016. To compare, prior to the decline in 2007, completed foreclosures averaged 21,000 per month between 2000 and 2006.
• On a month-over-month basis, the foreclosure inventory was down 3 percent compared with March 2016.
• The five states with the highest number of completed foreclosures were Florida (66,000), Michigan (47,000), Texas (27,000), Ohio (23,000) and California (23,000). These five states accounted for about 40 percent of all completed foreclosures nationally.
• Four states and the District of Columbia had the lowest number of completed foreclosures: The District of Columbia (128), North Dakota (317), West Virginia (482), Alaska (653) and Montana (695).
• Four states and the District of Columbia had the highest foreclosure inventory rate: New Jersey (3.7 percent), New York (3.2 percent), Hawaii (2.2 percent), the District of Columbia (2.1 percent) and Florida (2 percent).
• The five states with the lowest foreclosure inventory rate were Alaska (0.3 percent), Minnesota (0.3 percent), Utah (0.4 percent), Arizona (0.4 percent) and Colorado (0.4 percent).
Filed under: foreclosure |
NEVER BUY A FORECLOSED HOME. HOW ABOUT THIS PEACEFUL IDEA
Get ready for round #2! This is all smoke and mirrors. Does anyone think this problem is getting solved or better? These banks have controlled the courts as we have all watched these ridiculous rulings that it begs the question: How could it be that when a homeowner is going up against a bank that is a self admitted global fraudulent enterprise that has paid in excess of $200 billion in settlements and just about every day a headline crosses with them being caught fixing this market or rigging that market and no homeowner wins? In CT – nobody wins – no matter what.
Let’s fast forward, I had been successful in getting my girlfriend a modification from Ocwen on an $840,000 mortgage. Only because when they came out to the house the first floor was basically missing due to super storm Sandy and I gave the guy the keys to the non–existent door and said – its all yours unless you cut her a deal. Well they saw the problem and gave her a modification of 2% for 2 years and extended the maturity to 40 years. Now this kick the can down the road approach is about to bite them in the butt.
Her loan will double its interest rate in 3 months to 4% and go up each year from there. So she will be forced to default because the house in still underwater(financially not literally) and her bill will double. She is not alone so be prepared for round two of this never ending mess. Lots of modified homes will be foreclosed on again with the interest rate reset.
These banks and Fannie Mae prefer to sell off these loans for pennies on the dollar to their hedge fund junk debt collector buddies rather than preserve the family, neighborhood and community by offering the homeowner the same deal. Why is a really good question.
Corelogic is another slightly fantastic and mysterious company that appears to also operate outside the law. It has a certain MERStification about it. They do not respond to written communication either.
They can lie because the people don’t know. Please watch zeitgeist addendum 2 and the others. Pass it on to others. When things for me started going south in 2009 and every fax I sent for a modification was lost but I had the report that said “25 pages” including the cover sheet was received I knew something was up. I was woken up to our 1933 USA bk right here on.living lies. The guy posted something about our birth certificates being sold as bonds and that all our future earnings are used as collateral for this bk. That is why they want us in debt. Mortgages, credit cards, ect. All drawn from our BC account and we p pay the interest. That is salaries have not gone up to keep us on debt. We need to educate the masses. If we stand up and end debt we end their facade that got past our grandparents eyes and our parents eyes but not US we are strong we are aware.
It baffles me how the housing market (strictly controlled by banks and realtors as to inventory and available funding) has inflated 6.2% in a sub-2% national rate of inflation while labor continues to disintegrate. It’s all completely fabricated. Sometime, there will be a major correction.
Soon, I suspect.
I read the FED Report. It says nothing about Kool Aid, however, it is a crock of shit that is crafted stricty to keep cheap money in the market for two reasons.
The only inflation the government and multi nationals will not stand for… wage inflation. A rosy report on labor means us po-shitheads get to demand a sliver of the “recovery pie”, COLA increase and a bump to the FED Funds rates.
When you have to pay interest on the admitted 30 trillion in debt (not inclusive of unfunded liabilities), 25 basis points is still smack in the pocket book.
Here is what to expect after the elections, regardless of the results…
Britain devalues the pound sterling
Other quasi-interrelated Countries like Poland and Sweden exit the Euro to some extent.
Initially, Fed Funds rates only move up 50 basis points to drain some dollars out of the system, followed by negative interests rates on overnights to push the excess reserves out into the market.
Gold and silver moves 22 percent higher..
The Dow pulls back to 14,800…
Housing retreats by 10%…
Fannie and Freddie continue to be held in conservatorship because the government likes to returns…
American’s will pick up the bill for the Puerto Rican default…
Every day of the week will end with a “Y”…
The sun will rise in the east…
and Erbey will be gang raped by a band of pirates that overtake his yacht off the coast of Malta, and he will like it.
“they have inflated due to cheap money flooding the housing market” NG
Another factor, in many places the low inventory is pushing prices, multiple offers are being placed, over the asking price….does this sound familiar?
Appraisers are lying and realtors are telling owners to push their asking price upwards of 25%…see Charleston, SC as an example!
What people forget: when they sell high in order to purchase another home they must also pay the “inflated” price to move forward, so it is a zero sum game.
How is it so easy to lie to people and they sign right up for the scam?