Anonymous_IHB
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<A href="http://www.dqnews.com/Articles/2009/News/California/CA-Foreclosures/RRFor090422.aspx">http://www.dqnews.com/Articles/2009/News/California/CA-Foreclosures/RRFor090422.aspx</A>
CA Mortgage Defaults Jump to Record High
- Thread starter Anonymous_IHB
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Geotpf_IHB
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This probably means that, six months from now, there should be an ample supply of REOs, as opposed to the slim pickings currently available.
Basically, if you are shopping for an under $200,000 property AND qualify for the eight grand tax credit, I would buy now (I am). Everybody else should wait at least that long, and even those who qualify under both conditions should only pull the trigger if the deal is above average. If there's a dozen offers on the property, just walk away-don't get into a huge bidding war, there will be plenty more eventually.
Basically, if you are shopping for an under $200,000 property AND qualify for the eight grand tax credit, I would buy now (I am). Everybody else should wait at least that long, and even those who qualify under both conditions should only pull the trigger if the deal is above average. If there's a dozen offers on the property, just walk away-don't get into a huge bidding war, there will be plenty more eventually.
25inIrvine_IHB
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I'm guessing the reason the 2005 and earlier default rates are so low is due to the fact that they are responsible for the record high foreclosures in 2008. Is this correct?
caycifish_IHB
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Good news for me. Gives me more time to save.
graphrix_IHB
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[quote author="24inIrvine" date=1240475941]I'm guessing the reason the 2005 and earlier default rates are so low is due to the fact that they are responsible for the record high foreclosures in 2008. Is this correct?</blockquote>
Not really, most of them refi'd in 06 and 07 with inflated appraisals. I will have to check, but I believe the 05 and 04 MBS pools are performing nearly as badly on a % of the pool balance as the 06 and 07 pools, just the earlier pools are not as large on a $ basis due to more loans being paid off making the pools smaller by $'s. The 06 vintages of MBS were the ones that were responsible for the majority of the foreclosures in 08, and the 05 vintages were a close second.
Not really, most of them refi'd in 06 and 07 with inflated appraisals. I will have to check, but I believe the 05 and 04 MBS pools are performing nearly as badly on a % of the pool balance as the 06 and 07 pools, just the earlier pools are not as large on a $ basis due to more loans being paid off making the pools smaller by $'s. The 06 vintages of MBS were the ones that were responsible for the majority of the foreclosures in 08, and the 05 vintages were a close second.