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Better or Worst?

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April 04, 2008 – Comments (2)

Big Picture has a piece that suggests that the current foreclosure rate and problem is under reported because lenders do not have the man power to handle it, so they are looking the other when when home owners start to default and homes that should be under foreclosure are not.

Data that supports this is that days to process foreclosures have increase from 37 to 61 days.

Previously Mish has shown that there is evidence of walking away from homes before there is a problem and before rate resets.  That suggests that some of the problems that are expected to happen in 2009 and 2010 are showing up now, so there should be less problems with those resets than expected.

So, is the problem better or worse than expected?

2 Comments – Post Your Own

#1) On April 04, 2008 at 9:20 PM, Tastylunch (29.25) wrote:

I'm going to go with worse, mainly because this adds uncertainty what the numbers actually are in terms of the crisis (which screws up projections, valuations and allows the media continue to fuel the fire) and it's also proof that consumer confidence is really starting to weaken precipitously if people are giving up on their homes before rate resets.

That's what it looks to me at any rate. 

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#2) On April 05, 2008 at 8:35 AM, dwot (66.58) wrote:

Yup, when I think about what I know, I think worse as well...

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