Tuesday, July 07, 2009

More Evidence of the "Foreclosure Backlog"

by Bill McBride on 7/07/2009 09:00:00 PM

From Peter Hong at the LA Times: L.A. County's May default rate double last year

May's 9.5% [seriously] delinquency rate [more than 90 days] for L.A. County was up from 5% of mortgages ... in May 2008 [First American CoreLogic reported today].

... the final foreclosure stage -- has shrunk. In May, the L.A. County repossession rate was down to 1% of mortgages, from 1.1% a year ago. This discrepancy is the "foreclosure backlog" now looming over the housing market. ...

Nationally, First American reported 6.5% of mortgages were in default in May, up from 4% in May 2008. The national repossession rate was 0.7% in May, up from 0.6% in May 2007.
Ramsey Su (REO broker in San Diego) sent me some data today. He wrote:
[Pent Up Foreclosures - a stat Ramsey follows] measures the difference between foreclosures completed versus defaults. This gap is widening as a result of government intervention. ... If they do not ACCELERATE the foreclosure process and release some of the pressure now, the consequences will be disastrous.
The foreclosures are coming. The foreclosures are coming!