Over Half Of All California Delinquent Mortgages Have Not Received A Foreclosure Notice After 15 Months
Here’s one reason that our shadow inventory is so hard to pin down: 59% of delinquent California mortgages still have not received a Notice of Default after 15 months.
From Mish:
Here are some interesting stats courtesy of Jon Maddux, CEO of You Walk Away.
Says Maddux
In Florida, 45% of our clients are in pre-foreclosure status. On average, these Florida homeowners are 17 months delinquent and have yet to receive even their first formal foreclosure notice. 59% of our California clients are in pre-foreclosure status. These California borrowers are an average of 15 months delinquent and also have yet to receive their first formal foreclosure notice. Eighty-five percent of the homeowners we’re working with are in pre-foreclosure and have not made a mortgage payment for an average of 14 months.
Wow. I guess I should go get one of those 3.5% down FHA loans, “buy” a nice place, and live rent-free for a while…
Not good news for the market, but it does give some people who are struggling a break. I have very mixed feelings about this, there are people I know who are having a very hard time and it is nice someone getting a break. On the other hand, our country would be in a lot better shape if we had used the swedish model with the banks and cleared the market. That would have required prosecutions and respecting the rule of law so it hasn’t been on the table. It will be interesting to see what changes after the election, perhaps Obomney will turn out to be a loose cannon.