Horrible Bank. Smart Dog.

Record Number Late on Mortgage Payments

As the media announces that the recession is over it's hard to ignore the record number of American's stumbling to make their mortgage payment.

The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.24 percent of all loans outstanding as of the end of the second quarter of 2009, up 12 basis points from the first quarter of 2009, and up 283 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
...
The delinquency rate breaks the record set last quarter. The records are based on MBA data dating back to 1972.

The delinquency rate includes loans that are at least one payment past due but does not include loans somewhere in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the second quarter was 4.30 percent, an increase of 45 basis points from the first quarter of 2009 and 155 basis points from one year ago. The combined percentage of loans in foreclosure and at least one payment past due was 13.16 percent on a non-seasonally adjusted basis, the highest ever recorded in the MBA delinquency survey.
...
“While the rate of new foreclosures started was essentially unchanged from last quarter’s record high, there was a major drop in foreclosures on subprime ARM loans. The drop, however, was offset by increases in the foreclosure rates on the other types of loans, with prime fixed-rate loans having the biggest increase. As a sign that mortgage performance is once again being driven by unemployment, prime fixed-rate loans now account for one in three foreclosure starts. A year ago they accounted for one in five....” said Jay Brinkmann, MBA’s Chief Economist.
emphasis added

Full Article Link from the Mortgage Bankers Association

Price Solves Inventory Problem:Dalton Sells Out

Maybe it was the tax break or maybe it was just the heady rush of shouting a number higher than the guy next to you, but that auction really worked out for the Dalton this past weekend. All 34 condos on the block sold (one of the units at the site was already in escrow). Debi Roks, a project manager for auction company Kennedy-Wilson, tells us the event was standing room only. She couldn't share specific prices, but everything went for under the latest asking prices (unshockingly), which were between $349,000 for a 684 square feet loft with one bath and $779,000 for a 1,721 square feet two bedroom, two and a half bathroom condo with a rooftop deck. Starting bids ranged from $165,000 to $395,000. For the inside scoop on Pasadena Real Estate and Pasadena Foreclosures visit our friends at www.rivasestates.com

Foreclosure Wave Continues to Grow

From Matt Padilla at the O.C. Register: Foreclosure wave gathers momentum

“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.”

Click on graph for larger image in new window.

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.

reposted from Calculated Risk.

Finding a Loan For Investment Property

Finding the Best Mortgage for an Investment Property

If you are considering buying properties either to hold as investments or to sell then you need to look at mortgages and mortgage rates differently. In order to make the most amount of profit you need to borrow as little as possible. Remember: the most important aspect in the process is retaining the capability to turn the property around to the buyers without causing you payments in the. Thankfully, there are several ways you can mortgage these investment properties to your benefit.

What Can You Afford?

Take a moment to review your current financial status. If you can afford to make the down payment on a property, you may want to go ahead and do so. You will be able to use the equity to both build your profits and the number of subsequent investment properties.

Finding The Best Mortgage

Since you want to spend as little money as possible when buying properties to sell, you will want to acquire a mortgage that requires minimal financial output during the time period in which you are trying to sell the property. This means looking for loans with low initial interest rates or loans that pay off the interest first too. For example, if qualified, you may want to go with a no deposit loan through which you would be lent 100% of the property value provided that you can demonstrate a solid savings history. The initial mortgage payments will be smaller than they would be in a traditional mortgage agreement and you will be able to purchase the property a lot sooner.

Also, a hybrid loan- one in which the interest is fixed for a period of time and then becomes adjustable- is another good option for investment property holders, and works well for those either concerned about the future movement of interest rates or investors that don’t want to take a particular stance.

How to Get the Best Loan for Your Needs

When you find a property that you want to invest in, it is important to discuss financing options with a variety of banks and lending institutions. Be sure to explain your plan for the property as well as what you are prepared to contribute monetarily. Keep in mind that it is best to work with a lender that has a background in working with investment property holders as they will often be better suited to serve your needs.

Recession Not Over:Treasury Sec Can't Even Sell His Home

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
Home Crisis Investigation
http://www.thedailyshow.com/
Daily Show Full Episodes Political Humor Joke of the Day

Conforming and Jumbo Rates Move Higher

Last week was a roller coaster ride for mortgage rate watchers. After a nice rally in the mortgage-backed securities market on Tuesday, the par 30 year fixed mortgage rate moved below 5.00% on Wednesday, however by Friday Treasuries and MBS prices had fallen back to Monday 's levels and mortgage rates consequently moved higher. This has been a consistent pattern lately, each time mortgage rates break the 5.00% barrier, they fail to remain below 5.00%. This implies, if you are considering a refinance and have yet to submit a loan application...you should do so to ensure that you are able to take advantage of the periods of mortgage rates below 5.00% (assuming you qualify).

Reports throughout the industry are indicating that the par 30 year conventional rate mortgage is in the 5.25% to 5.375% range for the best qualified consumers and 30Y fixed jumbo loans are at 6.25%. In order to meet the criteria of best qualified you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including 1 point loan. Looking at the national average in this volatile rate enviroment is like looking at last weeks temperature. To get a quote or a custom proposal contact us anytime.

Optimist Series:Don't Bet Against America

Why I Drink Wine Daily.

No promo. No plugs. I wish they would compensate me! Here is one of the great reasons to get a glass or two at dinner:

Economic Rebound, Not Yet! Rates to Remain Great.

The American Trucking Associations’ advance seasonally adjusted (SA) For-Hire Truck Tonnage Index rose for the first time since February 2009, gaining 3.2 percent in May. May’s increase, which raised the SA index to 102.3, wasn’t large enough to offset the March through April cumulative reduction of 6.7 percent. ...

Compared with May 2008, tonnage contracted 11 percent, which was the best year-over-year result in three months. Despite the improvement from April’s 13.2 percent plunge, May’s decrease is still historically large.

ATA Chief Economist Bob Costello said the month-to-month improvement was encouraging, but cautioned that tonnage is unlikely to surge anytime soon. “I am hopeful that the worst is behind us, but I just don’t see anything on the economic horizon that suggests freight transportation is ready to explode,” Costello said. “The consumer is still facing too many headwinds, including employment losses, tight credit, rising fuel prices, and falling home values, to name a few, that will make it very difficult for household spending to jump in the near term.” He also noted that he doesn’t expect tonnage to deteriorate much further and that any growth in tonnage over the next few months is likely to be modest.

Note on the impact of trucking company failures on the index: Each month, ATA asks its membership the amount of tonnage each carrier hauled, including all types of freight. The indexes are calculated based on those responses. The sample includes an array of trucking companies, ranging from small fleets to multi-billion dollar carriers. When a company in the sample fails, we include its final month of operation and zero it out for the following month, with the assumption that the remaining carriers pick up that freight. As a result, it is close to a net wash and does not end up in a false increase. Nevertheless, some carriers are picking up freight from failures, and it may have boosted the index. Due to our correction mentioned above, however, it should be limited.

Trucking serves as a barometer of the U.S. economy, representing nearly 69 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods ...

repost from our favorite blog: Calculated Risk.

Expect to see good conforming and jumbo loan rates for the next six months at least. It will take some time for the inflation rate to budge and force rates higher.

Recession Over as Wall St Relocates to an Island

Now back to the mainland where everyone else lives:

Any illusion that prime loans would emerge unscathed was shattered by a May 28 report from the Mortgage Bankers Assn. "For the first time since the rapid growth of subprime lending, prime fixed-rate loans now represent the largest share of new foreclosures," the bankers said. The grime in prime was responsible for the worst performance on record for the U.S. mortgage sector in the first quarter: Nearly 13% of loans were delinquent or in foreclosure, the most since the bankers started keeping tabs in 1972. The problems were worst in the bubble states of California, Florida, Arizona, and Nevada.
The biggest factor in this second wave of foreclosures is the inability of distressed homeowners to sell in order to pay off their debts. Prices in bubble cities such as Los Angeles, Phoenix, and Miami are down less at the high end of the market than at the bottom, according to data from Standard & Poor's/Case-Shiller home price indexes. But that's cold comfort to people who haven't managed to sell at all. According to research by the National Association of Realtors, there are enough $750,000-plus homes on the market to cover more than 40 months' worth of demand at the current rate of sales. That's four times the rate of oversupply in the housing market as a whole. .

Business Week Article

Recession Over? Wall St Thinks So..

I think not. Chart of the day: