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Post by jeffolie on Sept 6, 2007 11:00:53 GMT -6
WASHINGTON - The number of homeowners receiving foreclosure notices hit a record high in the spring, driven up by problems with subprime mortgages. Now with home sales falling, the inventory of unsold homes rising and prices stagnant, some speculators are choosing to default on their mortgages. Another big problem is that an estimated 2 million adjustable rate mortgages are scheduled to reset this year at sharply higher interest rates, which will cause monthly payments in some cases to double or even triple, a problem that is especially severe in the market for subprime mortgages, loans offered to borrowers with weak credit histories. news.yahoo.com/s/ap/20070906/ap_on_bi_ge/late_mortgages
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Post by unlawflcombatnt on Sept 6, 2007 17:28:27 GMT -6
It would be interesting to know what mortgage number the "0.65%" foreclosure rate applies to. If it is all mortgages outstanding, it would be huge. At minimum, it should apply to most New Homes sold over the last 10 years. I looked up Census Bureau information to find out how many New Homes have been sold since the beginning of 1997. The following numbers are from the January, 31, 2001 New Home Sales Report from the Census Bureau. The strike-throughs indicate revision of the numbers since January 2001. " # New Homes Sold 1995................. 667 1996................. 757 1997................. 804 1998................. 886 1999................. 907 880 2000\p............... 898 877 " The total from 1997 through 2000 = 3.44 million New Homes Sold. Starting in April 2001, New Home Sales reports were available in pdf format. As such, the April reports were used to determine previous years total. The totals were as follows: 2001: 908K2002: 973K2003: 1,086K2004: 1,203K2005: 1,283K2006: 1,051K2007: 528K (through July 2007) The total from 2001 through July 2007 is 7.032 million New Homes sold. Adding them altogether, there were 10.479 million New Homes between 1/97 and 7/07. If the 0.65% foreclosure rate was applied just to New Home Sales, it would put 681,135 in foreclosure alone. It's difficult to apply this to Existing Home Sales, which are 5 to 6 times as many as New Home Sales. Since Existing Homes are being re-sold, and earlier foreclosures have been finalized, it would be necessary to determine how many homes have active mortgages in payment status. It would certainly add an an even larger number to the foreclosure total. Applying it to just the last 12 months' Existing Home Sales of 5.7 million would add 372 K to the total would put the total over 1 million. Again, it would be useful to know the total number of mortgages the 0.65% foreclosure rate applies to.
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