Docstoc

A_Sign_Of_The_Times

Document Sample
A_Sign_Of_The_Times Powered By Docstoc
					A Sign Of The Times...

Word Count:
375

Summary:
Traditionally, California has had a low foreclosure rate. However, in the
last quarter of 2006, 37,273 Default Notices were sent to California
Homeowners; an increase of 36.9% since the previous quarter.

High appreciation and strong sales in many areas have masked the
possibility of on-coming problems. With the cooling housing market;
higher interest rates; those inventive loans (targeted at people with
weak or blemished credit), and prices out-of-reach for many buyers, ac...


Keywords:



Article Body:
Traditionally, California has had a low foreclosure rate. However, in the
last quarter of 2006, 37,273 Default Notices were sent to California
Homeowners; an increase of 36.9% since the previous quarter.

High appreciation and strong sales in many areas have masked the
possibility of on-coming problems. With the cooling housing market;
higher interest rates; those inventive loans (targeted at people with
weak or blemished credit), and prices out-of-reach for many buyers,
according to the Center for Responsible Lending (CRL) 2.2 million
American households will lose their homes; $164 billion due to
foreclosures.

A Default Notice is the prelude to foreclosure; however, most Homeowners
emerge from this tragic situation by:

1) Refinancing: drawing on the equity of the property to bring the
mortgage payments current OR
2) Selling the Property: using the equity of the property to pay off the
loan

Even so, earlier in the year, 32 percent of Homeowners who found
themselves in default actually lost their homes to foreclosure; a year
ago it was only 8 percent. This is in line with a study conducted by the
Center for Responsible Lending who predicts that housing prices over the
next five years will fall and cause exit strategies to shut down.

The housing boom is fading. The disconnection between incomes and high
real estate prices is evident; there is an increase in the number of
Californians struggling to hold onto their homes.
A majority of the loans that have gone into default originated between
January 2005 and February 2006. The median age of the loan was fifteen
months.

Homeowners were a median five months behind on their primary mortgage
payments when the Lender initiated the Default process.

On Lines of Credit, the Homeowners were behind a median of six months.

On a loan-by-loan basis, mortgages are least likely to go into default in
the Bay Area, but more likely to go into default in the Central Valley
and Inland Empire areas of California.

There are 7.87 million properties in California, when one home forecloses
the surrounding properties lose value, as well. By threatening the
stability of the neighborhood, foreclosures hurt everyone.

Homeowners work hard to provide the economic security and ownership
benefits to their families what changes can be made in this great country
of ours so that owning a home is fair, affordable, and sustainable?

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:23
posted:3/2/2010
language:English
pages:2