Monday, July 12, 2010

Jumbo Mortgage Holders Default on Mortgages "At A Rate Greater Than Rest of the Population"

The NYTimes reports RE analytics firm CoreLogic's findings:
More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.
By contrast, homeowners with less lavish housing are much more likely to keep writing checks to their lender. About one in 12 mortgages below the million-dollar mark is delinquent.
But jumbos are a smaller share of the market, NYTimes, says Realty Check's Diana Olick:
A little less than 14 percent of the loans outstanding in the U.S. are "jumbo," meaning over $417,000, according to government statistics (FHFA). The number of loans that are over $1m are even less than that.
NY Times article here.  Diana Olick here.

Locally, there's been a noticeable bump up in foreclosure auctions scheduled (though not always completed) for houses or properties in excess of $1M.  In this area, a "jumbo" is a mortgage above the FHA's conforming loan limit of $437k.  See here:

June's $1M Foreclosure Auctions
May's record day of $21M in Scheduled auctions
April's Million Dollar Foreclosures 
High-End Defaults and Foreclosures in C'ville/Albemarle
2010 Foreclosures Surge Over 2009 


Anonymous said...

"The Rocks" - Embarrassing

Humpty said...

The 15 States With The Most Underwater Mortgages:

Nevada -- 69.9% of mortgages underwater
Arizona -- 51.3% of mortgages underwater
Florida -- 47.8% of mortgages underwater
Michigan -- 38.5% of mortgages underwater
California -- 35.1% of mortgages underwater
Georgia -- 27.8% of mortgages underwater
Virginia -- 24.3% of mortgages underwater
West Virginia -- 23.8% of mortgages underwater
Wyoming -- 23.8% of mortgages underwater
Maine -- 23.8% of mortgages underwater
Louisiana -- 23.8% of mortgages underwater
Mississippi -- 23.8% of mortgages underwater
South Dakota -- 23.8% of mortgages underwater
Maryland -- 22.9% of mortgages underwater
Idaho -- 22.7% of mortgages underwater

Anonymous said...

Virginia has 24.3% mortgages underwater. I'd bet my house that Charlottesville and Albemarle have a much higher percentage of homes under water.

(And that house I'm going to bet? I'll buy it for a realistic, non-bubble price this winter.)

Montpellier said...

I'd bet that Richmond and Fairfax are worse than C'ville.

I'm sure the official numbers do not adequately reflect the reality here in c'ville since extend-and-pretend has been remarkably tenable here...the comps just haven't fallen fast enough. I agree that this is just a very long Wylie E Coyote moment where we wait for reality to take hold.