Housing Foreclosure Rate Up 56 Percent in Minnesota from One Year Ago

5 Comments

1. Rudy on December 23, 2009 at 6:36 am

   Remember the delinquency rate includes loans in modification (something to remember – especially for the 90 day delinquent loans). Any modification that leaves a homeowner deep underwater is really converting the homeowner into a renter. And eventually most of those modifications will fail. There is no good solution, but at least we are acknowledging that many “homeowners” are really renters.

   Although the increases have slowed, about 40% of subprime loans are delinquent or in foreclosure. Historically house prices do not bottom until after foreclosure activity peaks in a certain area. Since the subprime crisis delinquency rates might be peaking, it would not be surprising if prices are near a bottom in the low end areas. But in general I’d expect further declines in house prices – especially in mid-to-high end areas.

   The data is really being impacted by all the loan mod programs and various moratoria. It is really unclear when (and how large) the next wave of foreclosures will be. The problem is that most of these people are so far underwater that small price increases don’t matter. The only thing that would help for many of these borrowers is more income.

   We’re all subprime now!

   Reply
2. Aaron Dickinson - Twin Cities Real Estate Blog on December 28, 2009 at 4:20 pm

   I have some counter arguments to the data that RealtyTrac is using and posted it on my blog… worth a read: http://www.twincitiesrealestateblog.com/

   Reply
3. being goode on December 28, 2009 at 9:06 pm

   The biggest personal finance story of the year was the further slide in home prices and the house had become the piggy bank. Home equity was the driver of over consumption, overspending, over borrowing in this decade. And now housing has returned to its rightful place, as a place you live. It is shelter; it is not an investment.

   A lot of people were saving for their retirement in their home, and I feel very badly for those people that when their equity eroded, they’re left without a broad array of financial assets, which should be the basis of future retirement security.

   I think one of the things we haven’t learned, is that we don’t learn lessons. They learn over-specific lessons. So, if you chased the hot returns of Internet stocks in 1999, and then you lost all your money in 2000, the lesson you learned was not to chase the performance of Internet stocks. So then you went out and you flipped condos in Ft. Lauderdale and then you got wiped out on that. And now the lesson you’ve learned is don’t flip real estate, but you’re piling into gold. And if that’s the way you learn lessons, then you haven’t learned any lesson at all.

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4. George Hayduke on December 28, 2009 at 10:15 pm

   Just more evidence of the growing delinquency problem. The non-credit enhanced serious delinquency rate is up from 1.06% last October to 3.28% in Oct ’09. That is actually increasing at a faster rate than the credit enhanced delinquencies.

   I have to wonder who holds the 2nds? ( or is that, “Hu holds the 2nds.”) They’re history and F&F don’t deal in that sphere, at least not yet.

   Unless my eyes deceive me, even the 2nd derivative is still climbing. Anyone for a poll on where (or when) the Delinquency Rate peaks?

   I say 8.9% in April, 2011.

   Reply
5. ReynaRyan on October 11, 2012 at 11:00 am

   Following my investigation, millions of persons all over the world get the mortgage loans from well known banks. Thence, there’s a good possibility to receive a secured loan in any country.

   Reply