recovery timing and problems

All the issues communicated below will be solved by one of two methods #1 our country starts to produce jobs or #2 the number of properties foreclosed on finally goes thru the 13.4 million properties mentioned with negative or near negative equity or to turn the looking glass around, take the homes already foreclosed on yet not yet sold add them to the mix and you come up with a total distressed property total of over 15 million homes when you realize that number then you clearly see the solution needs #1 instead of #2 and even at that with a 4 million sales rate you are talking another 3.5 to 6 years of down real estate market Thoughts to ponder

The MBA reports that 14.42 percent of mortgage loans were either one payment delinquent or in the foreclosure process in Q2 2010 (seasonally adjusted). This is down slightly from the record 14.69 percent in Q1 2010.

Delinquency problem is widespread with 36 states and D.C. all having total delinquency rates above 10%.

When asked if he expected the slight improvements to continue, Brinkmann said "Improvements are more of a hope". He said the problem is jobs, and he is revising down his economic forecasts. He also the improvement in the 90+ day bucket might be because of modifications - and that might not continue.

CoreLogic reports that 11 million, or 23 percent, of all residential properties with mortgages were in negative equity at the end of the second quarter of 2010, down from 11.2 million and 24 percent from the first quarter of 2010. Foreclosures, rather than meaningful price appreciation, were the primary driver in the change in negative equity. An additional 2.4 million borrowers had less than five percent equity. Together, negative equity and near negative equity mortgages accounted for nearly 28 percent of all residential properties with a mortgage nationwide.
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"Negative equity continues to both drive foreclosures and impede the housing market recovery. With nearly 5 million borrowers currently in severe negative equity, defaults will remain at a high level for an extended period of time," said Mark Fleming, chief economist with CoreLogic.

Howard Sumner