Category Archives: Bedford

Relief from soaring home prices isn’t coming anytime soon | Bedford Real Estate

The US housing market is supply constrained, sending home prices in major US metros back to levels last seen in the winter of 2007.

Research out of JP Morgan published Thursday indicates that this situation appears unlikely to resolve itself anytime soon.

“Nationwide house price indexes have been pushing steadily higher—real house prices are now 25% above their 2012 trough and at the highest levels on record outside the pre-crisis boom years,” JP Morgan’s Jesse Edgerton writes.

“One might wonder if these high prices reflect growing demand that could soon elicit a wave of construction that would prove our forecasts wrong. We find, however, that high prices are concentrated in markets where supply is constrained by geography or regulation, suggesting there may be little room for additional construction.” (Emphasis added.)

In short, areas seeing home prices rise fastest — think San Francisco, San Jose, and Denver — are not in a position to meet the demand for housing implied by the rise in prices.

The problem here is two-fold.

As the chart below shows, high home prices haven’t influenced the aggressiveness with which homebuilders have added to the housing stock over time. This indicates the supply side of the market is content to accept elevated prices even if the volume of homes built and sold is below what the demand side alone might dictate.

View photos

Additionally, Edgerton’s work shows that markets equipped with both high home prices and an ability to meet the demand implied by these prices literally do not exist.

“Metro areas in the upper right quadrant of the chart would be the best candidates for a demand-driven construction boom,” Edgerton writes. “Unfortunately, sharp-eyed readers will note that there are no dots in the upper-right portion of the figure.”

View photos

Edgerton adds, “Thus, it is unclear how much we can expect high prices to drive construction in the coming years, as the data show that high prices are concentrated in areas where supply may be limited in its ability to respond to demand.”

Data out this week from S&P/Case-Shiller showed home prices rose 5.3% nationally in August, up from a 5% annual gain seen the prior month.

A report from the National Association of Realtors last week showed a 5.6% increase in median existing home prices, the 55th straight month of year-on-year gains. At the current pace of existing home sales, there exists just 4.5-months’ supply in the US market.

“Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in,” chief economist for the National Association of Realtors Lawrence Yun said in a report.

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http://finance.yahoo.com/news/relief-from-soaring-home-prices-isnt-coming-anytime-soon-174136415.html?_fsig=arxQ.NYjpRCtxgAPQstl9A–

Existing home sales rise | Bedford Real Estate

Existing home sales, as reported by the National Association of Realtors (NAR), increased 2.0% in October and reached the highest pace since February 2007. In October sales increased for the second straight month, and were up 5.9% from the same month a year ago. Total existing home sales in October increased to a seasonally adjusted rate of 5.60 million units combined for single-family homes, townhomes, condominiums and co-ops, up from an upwardly adjusted 5.49 million units in September.

existing-sales-october-2016

October existing sales increased in all four regions, ranging from 2.8% in the South to 0.8% in the West. Year-over-year, October sales also increased in all regions, ranging from 10.4% in the West to 1.4% in the Northeast.

Total housing inventory decreased slightly by 0.5% in October, and remains 4.3% lower than its level a year ago. At the current sales rate, the October unsold inventory represents a 4.3-month supply, compared to a 4.4-month supply in September.

The October all-cash sales share increased to 22% from 21% in September, but was down from 24% one year ago. Individual investors purchased a 13% share in October, down from 14% in September and unchanged from a year ago. The first-time home buyer share was 33% in October, down a point from the solid September report, but above the first-time buyer share of 31% in October 2015. Distressed sales, comprised of foreclosures and short sales, increased to 5% in October from 4% in September, which was the lowest rate since NAR launched that series in 2008.

The October median sales price of $232,200 was 6.0% above the same month a year ago, and represents the 56th consecutive month of year-over-year increases. The median condominium/co-op price dropped for the fourth consecutive month to $220,300 in October, but was up 6.2% from the same month a year ago.

 

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http://eyeonhousing.org/2016/11/existing-sales-revival/

San Jose to tackle homelessness with tiny houses | Bedford Real Estate

Homeless person in San Jose, California

Sprawling and largely suburban in character, San Jose — highly affluent de facto capital of California’s Silicon Valley — is home to one of the nation’s most well-educated, socially progressive, ethnically diverse and highest paid populaces. It’s also blessed with beautiful weather, a fabulous park system and a low crime rate for a city of its size. Everything is hunky-dory, all sunshine and Dionne Warwick songs, in the well-heeled epicenter of America’s busiest tech hub.

Except that it’s not.

Like its (technically smaller) neighbor to the north, San Francisco, the third most populous city in California struggles with exorbitant housing costs, severe income inequality and a homelessness crisis that shows no signs of abating.

Yes, there are homeless people in the Silicon Valley. And way more than you might imagine.

As reported by the Mercury News citing 2014 statistics released by the U.S Department of Housing and Urban Development, San Jose and greater Santa Clara County have the fourth largest homeless population in the United States. With an estimated 4,063 homeless residents, San Jose has the nation’s third largest population of chronically homeless residents and the nation’s fifth largest population of homeless veterans.

In total, 69 percent of San Jose’s homeless population are living on the streets, in cars, in abandoned buildings and in encampments. One such encampment, “The Jungle,” was one of the largest — if not the largest — homeless camps in the nation until it was cleared out in 2014. The site has since been reclaimed by nature and other, smaller settlements have popped up around the city’s secluded wooded areas along creeks and riverbeds. In lieu of overcrowded shelters or encampments, many of the Silicon Valley’s homeless sleep aboard the 22 Bus, the only 24-hour bus line in Santa Clara County.

Never a city to shy away from innovation and outside-the-box thinking, San Jose is now turning to the tiny house movement to give shelter — even if just temporarily — to those who most desperately need it.

San Jose skyline)

Crisis mode meets creative thinking

A new piece of legislation authored by Assemblywoman Nora Campos and signed into law by California Gov. Jerry Brown on Sept. 27 would allow San Jose to circumvent statewide building, health and safety codes that would otherwise impede the creation of garden shed-sized standalone dwellings. In lieu of abiding by state regulations, city officials will adopt their own unique set of building regulations that enable the construction and distribution of homeless-geared tiny houses.

The law, which will be valid for five years at which point its impact will be assessed, can only be enacted if San Jose declares a “shelter crisis” — and it already has.

When the law goes into effect in January of next year, San Jose will be the first city in California to officially embrace tiny houses as a means of combating homelessness.

Speaking to the Mercury News, Ray Bramson, the city’s homeless response manager, notes that the tiny houses, so en vogue with middle-class downsizers and flexibility-seeking Millenials, would serve as a sort of “temporary stopping point” while the city constructs 500 affordable apartment units over the next several years.

“This law really is the first of its kind,” Bramson tells the Mercury News. “It will allow us to create bridge housing opportunities — a stable place people can live and stay while they’re waiting to be placed in a permanent home.”

The Jungle, San Jose

Tiny houses with a big impact

San Jose will soon launch a competition seeking designs for the diminutive housing units. The emphasis, according to the Mercury News, will be on “innovative features, cost effectiveness and replicability.”

The legislation, Assembly Bill 2176, dictates that single-person “emergency shelter cabins” must measure at least 70 square feet while standalone shelters for couple must be no less than 120 square feet. Each unit must be insulated, wired for electricity, include at least one lighting fixture and be topped with a weatherproofed roof. And this is a biggie: Each tiny house must also include a privacy lock.

Tiny houses, often bespoke and kitted out with high-tech bells and whistles, are generally in the 200 to 300-square-feet range in a non-transitional housing context. So, yes, 70 square feet is on the extremely petite side for a tiny house.

As for location, it would appear that San Jose is following in the footsteps of cities such as Austin, Texas, and Olympia, Washington, by establishing transitional micro-housing villages. Although sites have not been selected — and this may prove to be tricky part — the new law states that the tiny houses must be placed on city-owned or leased land no less than a half-acre. Each cluster of tiny houses, referred to in the bill as “emergency bridge housing communities,” would include on-site supportive services and bathroom facilities.

“It was huge for the governor to sign this because it’s outside-the-box and no one else has done it,” Assemblywoman Campos announced in a statement. “Other big cities like San Francisco and Los Angeles will be looking at what we do here. We had to do something because what we were doing wasn’t working.

It’s interesting that Campos mentions Los Angeles, a city where officials have yet to embrace the concept of tiny houses for the homeless but where private citizens have.

Such is the case of Elvis Summers, a power drill-wielding mohawked Angeleno that, in the absence of action from city officials, stepped up and decided to do something for his neighbors living on the streets of South L.A.

In 2015, Summers and a team of volunteers began constructing dozens of tiny houses, each costing about $1,200 to build. For financing, Summers launched a successful crowdfunding campaign that raised big bucks and garnered international media attention.

However, not long after the recipients of Summers’ hand-built micro-shelters began to get accustomed to sleeping with honest to goodness roofs over the heads, L.A. sanitation workers, under orders from City Hall, began an aggressive crackdown on the structures. While some were saved by Summers and temporarily moved to private property, others were impounded by the city.

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http://www.mnn.com/your-home/remodeling-design/blogs/san-jose-tackle-homelessness-tiny-houses

Home Prices in August – Gains Continued | Bedford Real Estate

The Case-Shiller (CS) National Home Price Index, released by S&P Dow Jones Indices, rose in August. The index rose at a seasonally adjusted annual growth rate of 7.6%, faster than the 4.9% reported in July. After the deceleration in the beginning of 2016, house prices have accelerated since May due to tight inventory and the increases in existing home sales in the early part of this year.

The Home Price Index from the Federal Housing Finance Agency (FHFA) rose at a seasonally adjusted annual rate of 8.9% in August, after the 5.7% increase in July, confirming the reacceleration in home prices.

figure1_aug16

After the tumultuous boom and bust the increases of recent months have brought home prices more in line with long term trend levels and home prices are reaching the pre-recession peak in 2006.

Along with the gradual increases in national home prices, home prices gained in most metro areas in August. Figure 2 shows home price appreciation for 20 major U.S. metropolitan areas in August.

Among the 20 metro areas, San Francisco had the highest home price appreciation (12.2%), followed by Seattle (10.1%), Miami (7.2%) and Dallas (6.6%). Fifteen out of the 20 metro areas had positive home price appreciation, more metro areas reporting home prices increased than last month. Home price appreciation in the remaining five metro areas was negative. They are Minneapolis, Atlanta, Las Vegas, Chicago and Detroit, with the highest decline of 1.8% in Detroit.

figure2_aug16

 

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http://eyeonhousing.org/2016/10/home-prices-in-august-gains-continued/

Mortgage rates average 3.57% | Bedford Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving higher.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.57 percent with an average 0.5 point for the week ending November 10, 2016, up from last week when it averaged 3.54 percent. A year ago at this time, the 30-year FRM averaged 3.98 percent.
  • 15-year FRM this week averaged 2.88 percent with an average 0.5 point, up from last week when it averaged 2.84 percent. A year ago at this time, the 15-year FRM averaged 3.20 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“This week’s survey reflects pre-election market conditions. As a result, the 30-year mortgage rate increased to 3.57 percent, only 3 basis points higher than last week’s level. On Wednesday, the 10-year Treasury yield closed above 2 percent, about 25 basis points higher than its pre-election value and its highest yield since January. At this point, it is too soon to tell whether Treasuries will hold this new level or if the mortgage rate will increase as much over the coming week.”

Manhattan sales down 15.3% YOY | Bedford Real Estate

Manhattan

The Manhattan apartment market saw its lowest total sales figures since 2011 during the third quarter, which is usually the busiest part of the year. And many brokers said that uncertainty over the presidential election doesn’t bode well for a turnaround.

The number of co-op and condominium sales in the borough fell 15.3 percent from the same quarter in 2015, the Wall Street Journal reported, citing New York City Department of Finance data.

Sales of co-ops fell notably 17.5 percent, and those of lower-priced apartments below the $1 million price point dropped off 22.2 percent. Market experts said a lack of supply was to blame for the slowdown on the lower end of the market.

This was the slowest three months since the third quarter of 2011 when the market was still recovering from the financial crisis.

Brown Harris Stevens  president Hall Willkie said the market takes a hit every four years during a national election, but this year is particularly notable.

“It is a much more polarizing event,” he said. “Both sides have dire predictions of what will happen if the other side wins.”

Wilkie said he doesn’t expect the market to recover at least until the holiday season at the end of the year.

Median prices for Manhattan apartments were up 10.5 percent from the third quarter of 2015, but down from peak prices earlier this year.

On Friday, The Real Deal reported that the target offering price of new condos approved for sale in New York City is down 34.4 percent year-over-year, despite only a small decline in the number of offered apartments

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http://therealdeal.com/2016/10/03/manhattan-resi-sales-down-15-3-yoy/?utm_source=The+Real+Deal+E-Lerts&utm_campaign=9edfdea9c9-NY_DAILY_05_06_20165_6_2016&utm_medium=email&utm_term=0_6e806bb87a-9edfdea9c9-385733629

 

Longaberger Basket Building heading to foreclosure | Bedford Real Estate

Longaberger basket building

Cushman & Wakefield

The Longaberger Basket Building, the Newark, OH, office structure built to resemble a giant picnic basket, is heading to foreclosure if the home goods company does not pay more than $600,000 in back property taxes.

Olivia Parkinson, the Licking County treasurer, tells realtor.com® that the county recently sent a letter informing Longaberger that it is referring the property for tax foreclosure. The company, which hasn’t made a tax payment since November 2014, owes $605,219.12.

In order to halt foreclosure proceedings and an eventual property auction, the company must pay the bill in full within two weeks, Parkinson says.

The one-of-a-kind property has lingered on the market for 18 months. Brenton Baker, a spokesman for the Longaberger Company, says serious negotiations are underway with “several entities” who’d like to pack their employees into the basket building.

The basket backstory

It’s been tough to find a buyer for the 180,000-square-foot building in a suburb of Columbus. The basket landed on the market for $7.5 million about a year and a half ago, and the price has since been slashed to $5 million. The current asking price works out to about $27 per square foot, roughly half of what area office space—that doesn’t look like bologna sandwich storage—typically commands.

Inside Longaberger building
Inside the Longaberger building

Cushman & Wakefield

“It’s a very unique property, and I don’t know that there are a lot of basket-related businesses out there,” says Baker. “The inside is a very nice, high-end office space. But the outside does present certain challenges.”

Longaberger, which sells baskets through a national network of Tupperware-style home consultants and is now owned by JRJR Networks, completed the office building in 1997 at a cost of approximately $32 million. It was the brainchild and dream project of the company’s founder, Dave Longaberger, who wanted his headquarters to mimic his best-selling basket.

Initially, the project’s architects thought he was speaking conceptually. But after the third failed design, Longaberger grabbed one of his baskets, slammed it on the table, and said, “Make it look exactly like this.”

And so they did, handles and all.

The exterior consists of stucco-covered framed metal set in a basket weave pattern. Two 75-ton handles heated to prevent ice from forming grace the top of the basket, and two 725-pound gold leaf Longaberger tags adorn the sides. The interior contains a 30,000-square-foot atrium and a 142-seat auditorium, where employees used to gather for movie night.

“It was a great home for us for many, many years,” says Baker, who’s worked for the company for 25 years. The final employees emptied out of the basket in July.

It also was a tourist destination. TripAdvisor, which calls the building “World’s Largest Basket,” ranks it No. 6 out of 19 things to do if you happen to be in Newark. The Dawes Arboretum is No. 1.

“It did bring people to the area when it was new,” says Jennifer McDonald, vice president of Licking County Chamber of Commerce, which includes Newark businesses. “They’d make a stop because of the size of the building and the photo opportunity.”

Unpacking the basket’s fate

But after Dave Longaberger died in 1999, tastes in home décor changed and sales slumped. The company’s revenue shrank from $1 billion in sales in 2000 to about $100 million in 2014. In fall 2014, the company was nipping away at the back taxes it owed, paying $10,000 per week for eight weeks, says Parkinson. But the payments stopped in November 2014.

Those delinquent taxes are “the scary part” for prospective buyers, says McDonald. “Heating and cooling costs must be phenomenal. Plus, it looks like a basket.” A basket in need of a paint job, according to a TripAdvisor comment posted in August.

 

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http://www.realtor.com/news/trends/longaberger-basket-building-foreclosure/?is_wp_site=1

Wondering around Harlem | Bedford NY Real Estate


The street scene in Harlem, near Lenox Avenue

Jeff Reuben/Curbed Flickr Pool

Journalists Felix Zeltner and Christina Horsten are the brains behind NYC12x12, a project in which they move to one New York City neighborhood each month, living in different areas of the city for one year. They’ll be blogging for Curbed during their journey, sharing insights and anecdotes from their travels through the five boroughs. Read on for Felix’s second dispatch, and check back for more insights from their NYC exploration.

“How do you explore a new neighborhood?” is a question we get asked often, and while it’s not alwayseasy, we have a few tried-and-true methods of finding neighborhood gems. It’s a lot of research, and after a month we have barely scratched the surface.

But we try our best, and my wife Christina is a master. Partly due to her job as a New York correspondent for a German newswire, she religiously reads everything concerning New York and rips out articles that turn into discoveries. For Harlem, she dug out a recent piece by New York magazine about African restaurants, which introduced us to Somalian and Pan-West-African kitchens.

Then there was the old New York Times piece that brought us to an apartment in Washington Heights, where the graceful Marjorie Eliot hosts jazz concerts in her living room every Sunday, free of charge. The crowd spilled out of her living room into the hallway of the building, with everybody listening silently.

We have a stack of books like The Big City and Its Little Neighborhoods, New York Originals, and the recently released Food and the City, which reveal great discoveries in every borough. To find more, we do extensive Googling of best-of lists and just recently found really good self-guided tours.

We also use apps, e.g. Google Maps, Yelp, and The Scoop, a somewhat neglected New York Times product that attempted to have staffers recommend their favorite places. (“Oh, you are the one person using it!” a NYT journalist once exclaimed when I told him that I love the app.) The restaurants are mostly too expensive for us, but the bars and cafes never fail—the Times has its own coffee critic who turns followers into coffee snobs. In Harlem, it led us to the greatness of Lenox Coffee and Double Dutch Espresso.

And then there are the people, who’ve been perhaps the most invaluable resource when wayfinding in a new neighborhood. Here’s an example: we found a printout on our doorstep just a few days after we had met our neighbors for the first time. On top there was a handwritten Post-It note. “Hi Felix and Christina,” it read. “Here’s a list of a few recommendations in Harlem. Hope you guys find a few gems on here—many I’m sure you’re already familiar with. Have fun exploring!—Neal and Daniel”

We’d met Neal and Daniel through our current subletter, Maxim, and they tipped us off to Levain Bakery, where you can buy the most delicious fresh cookies. We left a cookie at their door with a thank you note. And then this sweet couple sat down in front of their computer, compiled what they’ve learned from almost a decade of living in Harlem, and shared it with us. The two pages, held together by a paper clip, contained a list, separated into “food,” “walks,” and “oddities.” Their estimate of our knowledge was wildly exaggerated—we had never heard of most of these places.

We started with the food: Jamaican jerk chicken at the pop-up outdoor restaurant tucked in a little alley between the equally amazing Malcolm Shabazz Market and the Mist Harlem art center; pizza at Babalucci; and soul food at BLVD Bistro, all of which wowed us.

Next up are the walks: We’re excited to see the triptych by Keith Haring at the Cathedral of St. John the Divine and the architectural gems along Astor Row and Strivers Row.

Another great community resource—and a place to find things to do in every new neighborhood—is the YMCA. It already feels like a companion. We signed up with the Y in Brooklyn because they offer free childcare, but by now we have seen many of their awesome facilities. At the massive Harlem Y, you find more fun in the classrooms than anywhere else—ever heard of Dancelates?

And last but not least, we walk—an actual, aware, conscious walk, along with the occasional run. A reporter from Chinese television recently interviewed us and asked if we walk around a new neighborhood in concentric circles. We don’t—yet.

From strolling through our current neighborhood near Malcolm X Blvd, we learned one thing: We’re surrounded by some of the most beautiful people in this city and probably on earth. We never felt so underdressed as during Eid, the Muslim holiday, when the area around 125th Street transformed into a West African catwalk.

And we feel humbled every day, especially on those bright early mornings, when the sidewalk in front of our house is filling with glowing sunlight and people who are timelessly, effortlessly stylish.

One Instagram follower asked us if we can post Neal and Daniel’s full list online, and we promise to ask them once they’re back from vacation. Meanwhile, we would love to hear your ideas about exploring New York City’s neighborhoods. Any books, websites, or feeds we missed out on? Any institutions or people we should know about? Drop us a line, and we’ll share it here next time around.

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http://ny.curbed.com/2016/9/28/13088950/nyc12x12-harlem-blog-exploring-nyc-neighborhoods?utm_campaign=issue-49013&utm_medium=email&utm_source=Curbed+NY

Average home price rises | Bedford Real Estate

United States House Price Index MoM Change  1991-2016 

The average prices of single-family houses with mortgages guaranteed by Fannie Mae and Freddie Mac in the United States rose 0.5 percent on the month in July 2016, following an upwardly revised 0.3 percent growth in June and beating market expectations of a 0.3 percent gain. Year-on-year, the FHFA house price index went up 5.8 percent compared to a 5.6 percent increase in June. Housing Index in the United States averaged 0.28 percent from 1991 until 2016, reaching an all time high of 1.20 percent in January of 2000 and a record low of -1.70 percent in November of 2008. Housing Index in the United States is reported by the Federal Housing Finance Agency.

United States House Price Index MoM Change
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http://www.tradingeconomics.com/united-states/housing-index

 

Serious Delinquency Rate on Single-family Mortgages Continues to Drop | Bedford Real Estate

In its quarterly National Delinquency Survey, the Mortgage Bankers Association reported that 3.11% of 1-4 family mortgages were seriously delinquent in the second quarter of 2016. Measured on a not seasonally adjusted basis, the rate of serious delinquency, which includes both mortgages that are 90 or more days past due and mortgages in foreclosure, was 0.84 percentage point less than the 3.95% recorded in the second quarter of 2015. Since reaching a peak of 9.7% in the fourth quarter of 2009, the serious delinquency rate has experienced a steady decline. The current rate of serious delinquency was last seen in 2007.

The decline in the overall serious delinquency rate partly reflects a falling rate on conventional mortgages. Conventional mortgages include both prime and subprime mortgages. In the fourth quarter of 2009, the share of conventional mortgages that were considered seriously delinquent reached its zenith at 9.8%. Since then, the proportion of conventional mortgages considered seriously delinquent has steadily fallen, reaching 2.9%. However, despite the long decline, the serious delinquency rate on conventional mortgages remains above its 2005-2006 average, 1.6%.

Presentation1

The decrease in the serious delinquency rate overall also reflects a drop in the rate on FHA mortgages. Although the rate of serious delinquency on FHA-insured mortgages also peaked in the fourth quarter of 2009, it did not begin to record a sustained decline until 2012. As of the second quarter of 2016, the serious delinquency rate on government mortgages was 4.4%, 1.5 percentage points greater than the serious delinquency rate on conventional mortgages. Although the serious delinquency rate on FHA-insured mortgages is higher than the rate on conventional mortgage, it is lower than its average level between 2005 and 2008.

The serious delinquency rate has been dropping partly because the number of new 90 or more day delinquent mortgages has also been falling. According to the most recent version of the Federal Housing Administration’sSingle-family Loan Performance Trends, the number of new 90 or more day delinquencies has been falling since 2012, largely reflecting a decrease in the number of new delinquencies 90 or more days because of unemployment or income reduction.

As illustrated by Figure 2 below, in fiscal year 2012, approximately 233,000 of the roughly 500,000 loans that were delinquent 90 or more days reached that stage because the borrower experienced unemployment or an income reduction*. By 2015, the number of new FHA-insured mortgages that were 90 or more days delinquent fell to 136,000. Meanwhile, the number of FHA loans delinquent 90 or more days due to excessive obligations, the second largest category, fell by 15% between 2012 and 2015, but number of these delinquencies in each year between 2013 and 2015 has remained near its 2011 level. The decline in the new number of borrowers delinquent 90 or more days due to unemployment or income reduction over the 2012 to 2015 time period accounted for 65% of the total decrease in the number of new FHA-insured mortgages 90 or more days delinquent over this same period.

Presentation1

* This document from the Department of Housing and Urban Development provides definitions of each category.

Unemployment – The delinquency is attributable to a reduction in income resulting from the principal mortgagor having lost his or her job.

Income Reduction – The delinquency is attributable to a reduction in the mortgagor’s income, such as a garnishment of wages, a change to a lower paying job, reduced commissions or overtime pay, loss of a part-time job, etc.

Death of Principal Borrower – The delinquency is attributable to the death of the principal mortgagor.

Illness of Principal Borrower – The delinquency is attributable to a prolonged illness that keeps the principal mortgagor from working and generating income.

Excessive Obligations – The delinquency is attributable to the mortgagors(s) having incurred excessive debts (either in a single instance or as a matter of habit) that prevent him or her from making payments on both those debts and the mortgage debt.

No Contact – Should be used rarely for any 90 day or more delinquency.  Indicates that the reason for delinquency cannot be ascertained because the mortgagor cannot be located or has not responded to the servicer’s inquiries.

 

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http://eyeonhousing.org/2016/08/serious-delinquency-rate-on-single-family-mortgages-continues-to-drop/