50 to 1

A recent report by LPS (Lender Processing Services) stated that there were 4,084,557 mortgages 90 or more days delinquent or in foreclosure as of the end of May. Contrast that with actual foreclosure sales at 78,676 at month end, the volume of seriously past due loans over-shadowed the number of completed foreclosures by 50 to 1, according to LPS’ May Mortgage Monitor report released last Wednesday.

That is very scary...for every home actually sold at a foreclsoure sale there were FIFTY in line behind it where the owners were 90 or more days behind in their mortgage payments!

Right now I don't have the actual figures of the percentage of people who fall 90 or more days behind and eventually catch up on their back payments, interest, penalties, attorney fees, etc....but I have to believe it is fairly low. Then throw in the possibility that a big percentage of those delinquent homeowners are in a 'negative equity' position and any reasonable person has to assume that the chances of those delinquent owners getting current or even having the desire to get current is miniscule.

Additionally, LPS’ analysis found that inventories of foreclosures in judicial states ( In Florida we are a judicial stae) have increased twice as much as inventories in non-judicial states over the last year as courts have become clogged with high volumes of cases and lenders have slowed their processing of foreclosures, particularly in judicial areas muddled by affidavit issues.

Nationwide, the average time spent in foreclosure continues to extend, with more than 33 percent of borrowers in foreclosure not having made a payment in over two years, according to LPS latest study.

LPS says overall delinquencies are almost double and foreclosures are eight times higher than historical norms.

So..what's my point in writing this post? Basically the same as many of my other posts, mainly "don't rely on what you hear on TV or read in the papers"...those stories present only a sound bite...there is no analysis, follow up or discussion. Many times there is an agenda or spin being promoted. It is easy to hear a 'housing is rebounding' story on a Monday and a 'housing is getting worse' story on Tuesday.

Draw your own conclusions from the above... but that information from LPS tells me that there are many, many foreclosures and short sales that will be continuing to hit the market in the next 3-4 years...continuing to contribute to declining home values.

If you are thinking about selling...call me and lets decide if it makes sense to do it sooner rather than later. If you are thinking about buying, lets sit down and explore your options and see if it makes sense for you to buy now.

My direct line is 561 602 1258

Or you can email me HERE