Delayed foreclosures ready to hit the market?

A recent HousingWire news release just confirmed what most insiders already suspected...that banks have been holding off on foreclosures-but the day of reckoning must come eventually!

Amherst Sees 7m Foreclosures Poised to Distress House Prices

By DIANA GOLOBAY
September 24, 2009 10:34 AM CST

Recent analysis by the Amherst Securities Group indicates the housing industry will not only worsen as a delayed pipeline of foreclosed loans begins to liquidate, but that the Administration’s Making Home Affordable Modification Program (HAMP) will have no lasting effect on keeping delinquent loans current.

The early signs of stabilization seen among housing industry observers may soon recede as an overhang of the shadow inventory of foreclosures waits to enter the market.

The general outlook that the housing market has bottomed is “premature” optimism, according to analysis this week from Amherst.

Florida leads the way!

13.16% of Mortgages Delinquent: MBA

By DIANA GOLOBAY
Single-family mortgages set a new record delinquency rate of 13.16% in Q209, according to the quarterly survey by the Mortgage Bankers Association. The delinquency rate includes mortgages at least one payment past due or in foreclosure.

The results were lead by Florida with 12% of mortgages somewhere in foreclosure, another 5% at least 90 days past due and a total 22.8% at least one payment delinquent or in foreclosure at the end of June. Nevada followed Florida with 21.3% at least one payment past due or in foreclosure.

What housing recovery?

Not that Moody's was very accurate in assessing and assigning risk ratings to RMBS, but, if you live in Florida and were thinking of "holding on until prices come back" you'd better have a lot of stamina according to Moody's recent projections!

Moody's predicts that home prices will not reach their previous peak prices of '05/'06 until 2023-2030's (according to the article that accompanied the graph above).

If you have reason or a desire to sell, now or in the near future, you may want to sell sooner rather than later. However, if you're planning to live in your home until the kids are married and on their own, you may be able to weather the storm. Below is the bulk of the original article.