Foreclosures = Crashing Market?
- Charles "Skip" Geiser
- Sep 3
- 8 min read
You may be seeing headlines about how foreclosures are rising. And if that makes you nervous that we’re headed for another crash, here’s what you should know.
According to ATTOM, during the housing crash, over nine million people went through some sort of distressed sale (2007-2011). Last year, there were just over 300,000.
So, even with the increase lately, we’re talking about numbers that are dramatically lower. But what does the future hold? Is a wave coming? The short answer is, no.
Here’s why. Experts in the industry look at mortgage delinquencies (loans that are more than 30 days past due) as an early sign for potential foreclosures down the line. And the latest data for delinquencies is reassuring about the market overall.
Right now, delinquencies as a whole are consistent with where we ended last year, which means we’re not seeing the kind of increase that would signal widespread trouble.
But there are some key indicators to continue to watch. Marina Walsh, Vice President of Industry Analysis at the Mortgage Bankers Association, explains:
“While overall mortgage delinquencies are relatively flat compared to last year, the composition has changed.”
Right now, borrowers with FHA mortgages currently make up the biggest share of new delinquencies (see graph below):
And here’s why that may be happening. Borrowers with FHA mortgages may be more sensitive to shifts in the economy. And with recession fears, stubborn inflation, employment challenges, and more, it makes sense this segment of the market may be feeling it a bit more. But that doesn’t mean it’s a signal a crash is coming.
If you look back at the graph, it shows, while there are more FHA loans experiencing hardship than the norm, delinquency rates for other loan types remain low and stable. Back during the crash, delinquency rates were significantly elevated for all 4 categories.
That means the broader mortgage market is on much stronger footing than it was back in 2008. As ResiClub says:
“The recent uptick in mortgage delinquency seems to be concentrated among FHA borrowers, however, mortgage performance remains very solid when viewed in light of the twenty-year history of our data.”
The Region with the Most FHA Loans
Here’s another reason this isn’t a signal of trouble ahead. FHA loans only make up about 12% of all home loans nationwide. But like anything else in housing, local data matters. There are some regions of the country where there are more of this type of loan than others, particularly the South.
The map below does not show how many FHA loans are delinquent. It just shows the overall
concentration of FHA loans by state, so you can see which regions have the greatest volume (see map below):
As the Federal Reserve Bank of New York explains:
“Looking at geographic concentrations of loans, recent data indicate that a higher proportion of mortgage balances are delinquent in many of the southern states . . . we see that higher delinquency rates coincide with a higher share of FHA loans across states.”
Just remember, even the delinquencies rates we’re seeing now aren’t as high as they were in 2008. Again, this is not a signal of a crisis. But it is something experts will monitor in the months ahead.
If You’re Experiencing Financial Hardship
No one wants to see anyone face the challenges of foreclosure. But just know that, if you’re a homeowner struggling with payments, you’re not alone – and you do have options.
The first step is reaching out to your mortgage provider. In many cases, you may be able to set up a repayment plan or explore loan modifications to help you stay on track. And for many homeowners today, you may also have enough equity to sell your house and avoid foreclosure. Odds are, at least some of these delinquencies will go that route since homeowners today have near record amounts of equity in their homes. It may be worth seeing if that could be an option for you too.
Bottom Line
Foreclosures are rising slightly, but they’re nowhere near the levels of 2008. And delinquency trends don’t point to a crash ahead.
This is something industry professionals are going to watch in the days ahead. If you want to stay up to date, let’s connect so you always have the latest information.If you have questions or want to talk about what builders are doing in our area, let’s connect.Want to find out what the market looks like where you’re buying? Let’s connect.
Today's Pensacola Realtors MLS Information Today's Active Homes For Sale Escambia and Santa Rosa County 3155 v (39) Above $600,000 658 v (2) Between $500,000 - $599,999 194 v (5) Between $400,000 - $499,999 368 v (6) Between $300,000 - $399,999 866 Between $200,000 - $299,999 750 v (18) Between $100,000 - $199,999 279 Under $99,999 40 ^ (1) RED is UP Black Remained the Same Green is DOWN Current Mortgage Rate 30 YR Fixed 6.53% (+03%) 15 YR Fixed 5.88% (+.02%) |
Current Mortgage Rates
Florida
SkipSOLDMyHome.com with
Plum Tree Real Estate Marketing
850.221.6442
Alabama
SkipSOLDMyHome.com with
Rob Brooks Realty
850.221.6442
Think Your Smart?
Done...What Most Religions Don't Tell You About The Bible
Cary Schmidt's Introduction of Done  |
Time is Short...
God gave His only begotten Son Jesus Christ for us to be saved from this sinful world. Time is at Hand and while it is not too late, secure your salvation. If you don’t know how to secure salvation, this simple easy to follow “ABCs of Salvation” will guide you on how to accept genuinely Jesus Christ as your Lord and personal Savior to secure salvation for you to surely go to Heaven. But before going through the steps you might ask: Why do I need to Secure Salvation? And why do I need to go to heaven? This because:
So how to secure salvation?
A – ADMIT that you are a SinnerWe all have sinned.
19 For as by one man’s disobedience many were made sinners, so by the obedience of one shall many be made righteous. 20 Moreover the law entered, that the offence might abound. But where sin abounded, grace did much more abound: 21That as sin hath reigned unto death, even so might grace reign through righteousness unto eternal life by Jesus Christ our Lord. And no matter how you try to be good, you will still fail.
You are still unclean.
B – BELIEVE on the Lord Jesus ChristGod gave His only begotten Son Jesus Christ to save us. And through His blood, our sins washed away.
Only by His grace and not by works.
There is no other way but only through Jesus Christ alone.
God commended His love toward us.
If we have Jesus Christ living in us, we will live eternally.
By the blood of our Savior Jesus Christ
C – CONFESS with your mouthNow that you accepted that you are a sinner and believe in the Lord Jesus Christ, confess with your mouth your sins and that you believe in Him. Let Him come to you and accept Him as your Lord and personal Savior.
Now do the Sinner’s Prayer: Holy, thoughtful, gracious, and Heavenly Father, I recognize and acknowledge I am a miscreant not deserving of your grace and I ask forgiveness of my sins. I know your son is the truth the light and the way, I give myself freely to His control and welcome him into my heart. I ask you to walk with me and guide me, teach me your way and your truth. Thank you for the gift of your Son’s sacrifice on the cross that I may live. Thank you for your forgiveness and for accepting me as your child. Amen. Now that you are saved and you have Jesus Christ living in you, you should not stop there. What is next? Follow Him, His words, submit yourself, and don’t forget to D – DEPART from evilThis is not part of the step to secure salvation but it is a way of proving yourself that you are now truly of Christ. Forget your past and follow Him.
|
My Church
(Come Grow With Us)
5801 N Century Blvd, Century, FL 32535
Missionary Brother Ricky
This article provides information and opinions but is not meant as investment advice. Skip Geiser LLC, Charles "Skip" Geiser or Plum Tree Real Estate Marketing does not assure the accuracy or completeness of the information or opinions presented here. It is important to conduct your own research, due diligence, and seek professional advice before making any investment decisions. Skip Geiser LLC, Charles "Skip" Geiser or Plum Tree Real Estate Marketing is not responsible for any loss or damage resulting from relying on the information or opinions in this article.
Comments