I am a Certified Distressed Property Expert (CDPE) Realtor who specializes in short sales (helping homeowners who are default on their loan and may owe more than what their house is worth).  Most people are hearing the news that the economy is lifting out of the recession and we have hit bottom, however, they may not be hearing both sides of the story.  Loans that are currently going into default are increasing faster than ever, not the other way around.  Read the article from RealTrends below for further detail.

If you know of anyone that may be in default and not sure where to turn to, please have them call me, I can discuss their options and save the financial health of the borrower.

Delinquencies and foreclosures at record highs, with shadow inventories looming
 
Even as home prices are beginning to show signs of stabilizing and the industry is ramping up efforts to keep troubled borrowers in their homes, the latest market study from Jacksonville, Florida's Lender Processing Services (LPS) shows that mortgage delinquencies and foreclosures remain alarmingly elevated.  The company's October Mortgage Monitor report also cites large "shadow" foreclosure and REO inventories. The number of loans deteriorating further into delinquent status is now more than twice the number of foreclosure starts, indicating another major wave of troubled loans in an already clogged loan pipeline, LPS said.
 
Nearly one-third of foreclosures remain in pre-sale status after 12 months-twice as many as the year prior, LPS said in its study, further adding to the threat of a shadow eclipse. In addition, the six-month average deterioration ratio on troubled mortgages has risen the past two months to 300 percent, showing that for every loan that improves in status, three more deteriorate further, LPS explained.  LPS' October Mortgage Monitor reveals record high rates for non-current loans. The company reported that total U.S. delinquency rate stood at 9.37 percent at the end of September, while the nation's September foreclosure rate hit 3.12 percent - a month-over-month increase of 2.6 percent and a year-over-year increase of 88.9 percent.
 
Among individual states, it comes as no surprise that Florida posted the most troubling results, with 10.4 percent of loans in foreclosure and more than 12 percent more delinquent.  Other states reporting high levels of non-current loans were Mississippi, Georgia, and Michigan, as well as the usual high-foreclosure states of Nevada, Arizona, and California

 

Derek Gutting, The Gutting Group, Keller Williams Realty, www.GuttingGroup.com

www.Indyshortsaleexpert.com, 317 846-4888