August 28th, 2008 1:56 PM

Next Wave of Foreclosures Hits

Well, we've all been waiting to see what happens next in the real estate foreclosure market.  Fannie and Freddie have had us on pins and needles.  GW has been working on solutions at the Fed level.  Cities continue to rise in foreclosures.  What next?  How about Prime mortgages going into default?

 

Yes, that's right, prime mortgages are now following the subprime meltdown.  According to CNN, this news will almost certainly curtail the housing recovery.  

LoanPerformance, a unit of First American CoreLogic, reports that Prime loans under $417,000 have increased in delinquency from 1.38% in May 2007 to 2.44% in May 2008.  That same statistic for prime loans greater than $417,000 went from 1.11% to 4.03%.

On top of everything else, reports that loans issued in 2007 are showing a delinquency rate higher than any prior year, indicating an ongoing default concern that has not reached its slow-down point.

Posted by NFSTI Foreclosure Training

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