Foreclosure watch: New delinquencies outpace workouts

From Bloomberg News today: "Newly delinquent mortgage borrowers outnumbered people who caught up on their overdue payments by two to one last month, a sign that nationwide efforts to help homeowners avoid default may be failing."

More: "In April, 73,880 homeowners with privately insured mortgages fell more than 60 days late on payments, compared with 39,584 who got back on track, a report today from the Washington-based Mortgage Insurance Companies of America said. Mortgage insurers pay lenders when homeowners default and foreclosures fail to cover costs."

What about "Hope Now," the mortgage industry's effort to help homeowners avoid foreclosure? Bloomberg: "The Hope Now program has so far proven insufficient, Sandra Braunstein, the head of consumer and community affairs at the Fed, told the Conference of State Bank Supervisors at a meeting in Florida last week."

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Photo credit: AP

Comments

[Cal]

There was a one time surge in defaults based on a change in the way a MI company reports its numbers. Previous few months would have been a bit worse and this month Cure / Default ratio would have been better if they were reported consistently. Even so averaging the previous 3 months defaults and dividing into cures you get a 62% cure rate instead of 50%, not very good.

Also, Hope Now reports 183k workouts, so the pace of Repayment plans and modifications continues to increase. Also the ratio of modifications to repayment plans continue to increase.
http://tinyurl.com/6qlkk7

I don't think the foreclosure statistics capture how bad it really is it out there.

[Nick]

Restatement:

The number of loans becoming delinquent outpaced the number being paid off by the government with responsible taxpayer dollars, indicating that the bailout programs are not yet sufficient enough to pay off all the bad loans given to irresponsible speculators and people who bought houses they couldn't really afford.

"The bailout programs are working, but there's just not enough money being spent on them," said socialist bailout proponent Joe Democrat Lobbyist, "how do you expect to socialize trillions of dollars of speculative losses with only hundreds of millions in bailout funds? The government needs to do more to keep people in homes they have no chance of paying for, otherwise we run the very real risk of having housing become affordable again!"

Intelligent Thought was not available for comment at press time.

[shockg]

Great. Now tell us how many of those 74,000 homes are in southern ca. Nation stats are useless on the surface.