Yesterday I had the opportunity to hear a speaker address the current market for short sales and foreclosures. I was particularly interested to hear about our market here in Long Beach and disappointed to only get national statistics. Even though they are national and may not be a true reflection of our market, I think they are a reflection of the economic situation in our country. So I'm going to share them with you but keep in mind our market in Long Beach is different than the national statistics, each market is. Are we better or worse, I'm not sure.
50% of all homeowners are upside down in their house, meaning that they owe more than the current market value if they were to sell
1.2 million homes are currently in foreclosure
5.5 million homeowners are delinquent on their loans (we think this is the shadow inventory you keep hearing about)
That's a total of 6.7 million homes that are in some form of delinquency
1 in 186 households have an NOD (notice of default) filed on them
Every foreclosure in a neighborhood has the potential to drop the value of properties in that neighborhood by 13%
900 million option ARMS (adjust rate mortgages) will recast (rates will change) between 2010 and 2011
90 day delinquency rate is 32% and could double to 70% by the end of 2011
Of all the 90 day plus delinquencies, most have never spoken to their lender or to a Realtor
Staggering statistics. I think the changes in our market are not done, but the government has done some good things working with lenders to help homeowners, get modifications, reset the loans, or sell their property with no deficiency. If you know anyone that is struggling with their payments, don't let them wait until there is a notice posted on their front door, then it's too late. Tell them to call, if I can't help them, I'll point them in the right direction. There are lots of resources out there to help, don't put your head in the sand.
Heather@HeatherandSarah.netSarah@HeatherandSarah.net244 Redondo Ave.Long Beach, CA 90803