“To say there is a second wave implies the (current) wave has receded,” [Sam Khater, senior economist, First American CoreLogic] “I don’t see that the wave has receded.”
This graph is from Matt based on data from American CoreLogic.
Khater said ... federal and state efforts have mostly delayed foreclosures, preventing few. ... So to tune out the noise, just look at the 90-day rate. In Khater’s view it shows “one giant wave.”
90 day delinquency rate: "everything 3 months late or more. Likely includes most all Foreclosures in Process. The categories are not separate."
Foreclosure Rate is actual foreclosures in process: "Everything with NOD and Trustee's Sale filing."
REO Rate: "Everything foreclosed but still held by bank or servicer. This category is separate from other two."
Mr.Mortgage Summary:Expect to see more home inventory come on the market in the next two years. It takes 12-14 months after a payment is missed to actually get listed by a realtor for sale as an REO. With the unemployment rate at 10% give or take that is a lot of new folks entering the foreclosure line. This will pressuree prices in market that were the former bubble states.