Saturday, November 5, 2011
Freddie Mac Default statistics show that the rate of mortgages in default or foreclosure have measurably improved in 2010 and 2011. The worse years for mortgage companies were 2006, 2007 and 2008 just before the big real estate melt down. For example, for conforming loans that were originated in 2007, now there are almost 7% of those that have been foreclosed or sold-short. That's a horrible number.... Almost 7 times worse than what was experienced during 2000 and 2001 (of course back then the prices of homes weren't as high... So it's easier for home buyers who bought in 2000 to sell their house and have enough to pay off their mortgage; whereas, many more people who bought in 2007 are underwater in their mortgage. So they be choosing to strategically walk away or look for a short-sale that the bank agrees to.