Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (47430)	12/15/2005 2:49:42 PM
From: Skywatcher	Respond to of 110194

Late Mortgage Payments Increase # An industry group says delinquencies rose in the third quarter because of Katrina but fell from a year earlier. From Reuters NEW YORK — Delinquencies on U.S. home mortgages rose in the third quarter because of the displacement of people by Hurricane Katrina, but they fell from a year earlier as the economy improved, an industry group said Wednesday. The rate of homes entering the foreclosure process, slightly up last quarter from a year earlier, is likely to grow once the effects of hurricanes Katrina, Rita and Wilma are reflected, the Mortgage Bankers Assn. said. Many lenders are delaying pushing delinquent loans into foreclosure as a means of hurricane relief. Katrina, the costliest U.S. natural disaster, was quickly followed by Rita and Wilma, MBA noted in its report. The mortgage delinquency rate rose to 4.44% in the third quarter from 4.34% in the second quarter, but fell from 4.54% in the third quarter last year, the MBA said. New foreclosures on homes edged up to 0.41% in the third quarter from 0.40% a year earlier. The hurricanes' effect will probably boost delinquencies and foreclosures for at least the next few quarters, according to the MBA. These figures are seasonally adjusted for one- to four-unit residential properties. Delinquent loans rose sharply in Louisiana and Mississippi during the quarter because of destruction from the storms, which slammed the Gulf Coast in August and September. Delinquencies for all loan types, however, were lower in the third quarter once hurricane effects were eliminated. Hurricane fallout, higher energy costs as well as rising interest rates and their effect on adjustable-rate mortgages could further squeeze homeowners in coming months, MBA Chief Economist Doug Duncan said in a conference call. But the improving economy is creating more jobs, which will help temper rising delinquencies and foreclosures, he said. "At the end of the day, the most important criteria are job growth and real income growth," Duncan said.

To: Ramsey Su who wrote (47430)	12/15/2005 3:43:41 PM
From: John Vosilla	Respond to of 110194

If delinquencies aren't up in bubble markets then they've even accelerated to higher levels in Ohio, Texas, Colorado and the rest of flyover country? I agree homeowners in Florida and California have a ton of options to avoid foreclosure for now but often it should at least get to a foreclosure filing before some deal gets worked out and a foreclosure sale is avoided. Don't forget it is after the filing that all the solicitations really start from mortgage brokers and investors to help out the damsel in distress<g>.. As to single family bubbles yeah this time it is going to be a lot more than SoCal, Boston and NYC metro that get hit. Basically any other area that has appreciated significantly and (or) has had a ton of new construction/investor activity..