Steadfast FinancesChartporn: Number of Days Foreclosed Homeowners Not Paying Their Mortgage

Chartporn: Number of Days Foreclosed Homeowners Not Paying Their Mortgage

Filed in Infographics & Chartology , Real Estate 3 comments

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 and 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.

Keith Jurow
Seriously Delinquent Homeowners Undermine Hopes of a Market Recovery

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Posted by CJ   @   24 May 2011 3 comments
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May 27, 2011
4:04 pm
#1 Emily :

This is why you should buy much less house than you can afford at the time you buy.

May 27, 2011
8:17 pm
#2 Dan B :

Emily………Actually that’s NOT the moral of the story. The moral of the story is that one should take the “free roll” when it is presented to you. The option to bet on housing & keep the winnings if it goes up…………but to just walk away if it goes down (after living rent free for months or years)………is a free roll. Only downside is your credit score, but that too shall recover.

May 27, 2011
8:25 pm
#3 Dan B :

And before anyone gets on my case about the whole “right & wrong” thing……….I didn’t create the system, I didn’t write the rules. I live in California & I’ve got a number of friends who bought houses 4-5 years ago & have been paying their mortgage every month. They’re all underwater $100K+. They should have taken my advice to walk away 2-3 yrs ago but they decided to do the “right thing” & to stay & keep paying. If they had done as I suggested, they’d have a small pile of cash in the bank today & already almost half way to rehabilitating their credit score. Instead they keep watching their home value decline every month, live paycheck to paycheck………..with $50 credit left on their credit cards.

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