Legendary chartporn of this quality would almost make me ill had I not been so prepared for the smell of Castor Oil.
From the article:
This chart is really astounding. It shows the average number of days that homeowners with defaulted loans (NOD) have not made a mortgage payment. For New York, one of the states which requires court approval (judicial) of a foreclosure, it is more than 21 months. Can you imagine how many seriously delinquent loans there are in that state?
This figure for the average number of days delinquent continues to grow in nearly every state. It is the source of the “shadow inventory” pipeline. As prices continue their descent, the total number of properties in this situation will almost certainly increase. That’s because a growing number of seriously underwater homeowners are beginning to sense that their property’s value will not return to what they paid for it for many years, if ever.
The findings of a shocking new survey reported jointly by trulia.com and realtytrac.com were released on May 18 of this year. It revealed a dramatic change in consumer attitudes about when the housing market will “recover.” Only last November, 37% of those polled believed the recovery would begin no later than the end of 2012. That number plunged to 18% by April.
Most ominous in the report is that 54% of those surveyed thought the recovery would not occur until “2014 or later.” This percentage was only 34% in November 2010. Such an extraordinary shift in six months tells me that the number of potential walkaways is growing by leaps and bounds.
There are dozens of infamous quotes that would adequately sum up the ominous overtones of such bearish data, but I think I’ll let this one go and let the chart do the talking.
Of course, if you’re a vulture real estate investor looking to score serious discounts at foreclosure auctions, you’re about to enter the “seven fat years” period.
Seriously Delinquent Homeowners Undermine Hopes of a Market Recovery