Data from First American Logic shows that foreclosure rate for the same period for November 2009 was 2.46%, which was an increase of 1.08 percent from 1.38 percent in '08. However, when you look at the REO or bank-owned foreclosure, that measure the percentage of loans not sold at auction but back to the lender, the rate stays flat in '09. What does this tell us? 1) Investors grabbing bank foreclosures left and right, or 2) the loan modification works or 3) bank haven't released much of their inventories (still in the shadow). The trend seems to show that in reached peak in February '09. Then slightly coming down after that.
So, if you have inside knowledge, let me know. Because HousingWire reports that the big guns (Bank of America, JPM Morgan Chase, Citigroup, Fannie and Freddie) - all suspend foreclosure through the holiday season. The other thing is, there's some 2.4 million foreclosure in the shadow inventory, that is supply of homes that are seriously in delinquent or in the foreclosure process. Look at the data below for DC region. Do we see shadow there?
|Washington-Arlington-||90+ Day Delinquency Rate||Foreclosure Rate||REO Rate|
Source: First American CoreLogic.