Dr. Housing Bubble 10/20/09

[Crewleader]

California Sending out Approximately 475,000 Notice of Defaults for 2009 yet Overall Foreclosures Declining. Shadow Inventory, Q3 Defaults, Toxic Loans. The State of the National Housing Market.

California is on path for a record 2009. By the end of the year over 475,000 notice of defaults will be sent to California homeowners. This of course is simply from lenders that actually even bother to send a notice of default. The shadow inventory is growing and we have some concrete data showing the mismanagement in the housing market. Banks for the most part are playing hot potato with bad mortgages like Alt-A and option ARMs. It is interesting to note that today, we have data showing a record number of notice of defaults for 2009 yet actual foreclosures are less than 2008. What gives? Well for Q3 we found out that the median months behind before a lender filed a NOD is 5 months. That is right, 5 months with no payment before the lender even notices.

First let us look at this trend on a chart:



Source: Data Quick

http://www.doctorhousingbubble.com/california-sending-out-approximately-475000-notice-of-defaults-for-2009-yet-overall-foreclosures-declining-shadow-inventory-q3-defaults-toxic-loans-the-state-of-the-national-housing-market/

[CanonRay]

1. My wife is a former realtor

and former H.U.D. employee, and she cannot believe these numbers.

[NMDemDist2]

2. what can't she believe? that they are this bad, or that the numbers are accurate

to begin with

please expand your response, thanks :hi:

[CanonRay]

3. That the numbers are this bad