10 Million more Mortgages set to default.


Wow, OMG, WTF, how many other 3 letter words could describe this?

I was reading this article from HousingWire and the numbers are staggering.  If these numbers prove to be accurate I will be eating my words that “I think we have weeded a lot of our shadow inventory by Short Sales“.  10 Million – that is only 200,000 more mortgage defaults per State!  (and I hardly think North and South Dakota will have that many mortgage defaults, that’s more than half their population!  Sorry Dakotan’s – couldn’t resist!)  Good thing we have managed to sell off that excess 10,000 in inventory over the last 3.5years, looks like we have another 60.5 years in inventory to sell off!

Thought I would pass this along.  I am a little skeptical of these figures because these are figures being used to “get Congress to act” and quite often that kind of stuff involves Hockey Stick charts and such.  I do know there is a big number in shadow inventory.  I have been reading numbers more in line with 1.5million to 2million in Shadow Inventory and no one seems to really pin-point a number just taking estimates based on late payments.  But 10 million, that is a BIG number!

Any opinions on this?  Do you believe these numbers are for real?  1 in 5 outstanding home loans?  That tells me that the unemployment and under-employment are far bigger problems than we are being told… 

Roughly 10.4 million mortgages, or one in five outstanding home loans in the U.S., will likely default if Congress refuses to implement new policy changes to prevent and sell more foreclosures, according to analyst Laurie Goodman fromAmherst Securities Group….

…”Many analysts looking at the housing problem mistakenly assume it is limited to loans that are currently non-performing (or 60-plus days past due). Such borrowers have a high probability of eventually losing their homes. However, the problem also includes loans with a compromised pay history; these are re-defaulting at a rapid rate,” Goodman told a Senate subcommittee Tuesday.

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