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 (52121)	1/31/2006 8:21:51 AM
From: russwinter	Read Replies (4) \| Respond to of 110194

Notice we have a 11.4% increase in defaults from Oct-Dec (50,758 per month) versus Dec. 04-Sept. 05 (45,582 per month), with the cure rate now running at 67.8% average for the last three months (peaked at over 100% Feb-April, 05). Another way of looking at it: Dec.04-Sept. 05 uncured: 3,145 a month Oct. 05-Dec.05: uncured: 11,573 a month I'm not real clear on what the definition of "cure" and "default" is though? How many are cured through actual foreclosure, versus just getting caught up? If they are running below 70%, wouldn't that suggest foreclosures versus voluntary cures are more likely now? Going forward I'd be real interested in the location these defaults. The market in the northeast has gotten very weak, and California has rolled over. From Freddie site: freddiemac.com Cure Rate: Of a portfolio of delinquent mortgages, the percentage brought current or repaid. In the first case, the borrower makes missed payments, bringing the mortgage up to date. In the second instance, the borrower pays off the mortgage in full, thereby canceling the loan obligation. Default: When a borrower is in breach of a note or a security instrument--such as a mortgage or deed of trust--thereby entitling a lender to initiate foreclosure proceedings.