Approximately 5% of all U.S. mortgages are at least one month behind in payment, according to a WSJ chart. Nationally, there were 259,085 homes in foreclosure -- default notices, auction sale notices and bank repossessions -- in November; this is the lowest level since July. Hardest hit: Nevada where one in every 76 housing units -- 13,962 properties -- had a foreclosure filing. Number two is Arizona, where one in every 198 housing units receiving a foreclosure filing.
At the end of September, Fannie Mae had 67,500 properties in foreclosure.
The NYT reports that as many as 70,000 renters have been evicted "in recent months" due to foreclosures. If you are a renter who has been current with payments but receive a foreclosure notice, contact your local legal aid office for help. Do not just accpet a "cash for keys" offer from a bank unless you really want to move -- right this minute.
Comments
So if I walk up to a foreclosed home, carrying a wad of cash, I will be told to take a hike because the gov is happy with the present non-paying customers. What exactly is the business model here?
As a landlord I find it hard to believe that the landlord purposely did not pay the mortgage. Based on my experience as a landlord for 12 years and still going, the recent tax increases for non owner occupied dwellings coupled with renters not paying rent in a timely fashion, causes the landlord to not have enough money saved back due to other renters not paying previous rents and lawsuits tied up in courts. It will be interesting to see how FM will soon change it’s mindset about keeping people in the houses and dealing with the repairs and maintenance. Who will pay for those things?
First, I don’t think most people purposely intend to go into foreclosure.
Second, FM will sell the property not be long-term landlords. However, the process of the sale, closing and so forth, will give the renters time to find a new place to live… or … provide the investor with cash flow. IOW, it’s possible that the new owner will continue renting the property. In that case, having tenants is a bonus.
I think it is always dangerous to project our own circumstances out into the universe. In a perfect world, responsible tenants would rent from responsible landlords.
This is somewhat off point. . .there was a guy on 60 MINUTES last night who forecasted the next round ~ ARM-related foreclosures ~ would be brutal. 10% of homeowners are delinquent on their mortgages BEFORE their ARMs get adjusted! He opined 2009 and 2010 would make 2008 look like fun. Yikes!