By: Dennis Norman
Today the Office of the Comptroller of the Currency (OCC) and the Office of the Thrift Supervision (OTS) released their mortgage metrics report for 1st quarter 2009.
The report shows foreclosures continued to increase during the first quarter of this year. However the report also shows a significant increase in short-sales which I discussed yesterday in a post.
Below are some stats from the report:
- The number of newly-initiated foreclosures dropped among sub prime mortgages but increased for prime and Alt-A loans.
- Prime mortgages experienced the most significant increase rising by 21.5% from the previous quarter. The foreclosure problem has definitely hit main stream America.
- Completed foreclosures fell by 10,698 from the prior quarter, a decrease of nearly 12%. This was the result of national, state, local and servicer-imposed moratorium in effect for much of the first quarter of 2009 and the increasing number of loan modifications being offered to borrowers in an effort to curtail foreclosures.
- New short sales increased to 17,036 for first quarter, an increase of 17.1% from the prior quarter and a whopping 208.5% increase from a year ago
I think the stats show that foreclosures are going to be impacting our market for sometime and there will be a steady stream of REO’s for some time to come. It also shows though, the brave-new world of opportunity for investors is Short-Sales. Short-sales present an interesting opportunity for investors to get creative. Yesterday I discussed using options to purchase them…it’s one approach, there are many others….we’ll talk more on this.
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