Talking about the number of mortgage delinquencies, a scary Halloween story courtesy of Well Fargo, a silver lining to the meltdown in real estate and more…
Mortgage Delinquencies Up September 2012
LPS is reporting that the number of delinquent mortgages increased in September 2012 from the August level. the good news is the number of delinquent mortgages is down 4.19% compared to September 2011. Also the number of loans in the foreclosure process declined in September to the lowest level in almost 2 years.
Scary Story from Wells Fargo
Well since it is Halloween I thought it was appropriate to share a scary story about Wells Fargo: Sheriff’s Deputies Barge Into Cancer-Stricken Disabled Woman’s House with Guns Drawn to Evict Her
A Silver Lining to the Meltdown in Real Estate
I had tweeted an article about how Gen X & Y are more responsible and savvy buyers. According to a recent survey, 75% of these buyers say that owning a home is a key indicator of success. But then I read this article that shows how the number of people searching for “Buying a home” has decreased but the number of people searching for “How much house can I afford” has increased.
As much as I wish that every person that contacted me about seeing a house had taken the first step in talking to a lender…well that is not always true. But I have worked with several first time home buyers this year and they already knew exactly what their budget was. The smartest thing a buyer can do is to start their home buying journey on the right path…
The Effect of Home Ownership on Children
Another study has come out about how home ownership is tied to positive outcomes for children. But before we get too deep into the results, let’s look at who helped with this study: people with a vested interest in this study showing home ownership in a positive light such as the Mortgage Bankers Association.
I have no doubt that in some ways, the children of home owners might have some differences compared to the children of renters. But if we are discussing a loving, caring family, does it matter if the family rents or owns their home?
Anyway some of the findings were:
- Home ownership is associated with 2.6% lower high school dropout rates
- Home ownership is associated with a 5% lower teen birth rate nationally
- The size of the down payment has little effect on the outcomes for children, except when borrowers put no money down, at which point the outcomes become indistinguishable from those for renters
- The impact of home ownership is particularly important for households with short lengths of tenure. The study indicate that home ownership matters, particularly over the short term
- Parents’ marital status, income, race or age of the mother when the child was born had little effect on outcomes, after controlling for parental education, home ownership and other household characteristics
I think this study misses the most important criteria: Love. If a child is in a loving, caring environment is more important in my opinion than if their parents own or rent. However, the results of this study are something to consider…
More Real Estate News
Good news for the taxpayers: Cost of Bailing Out Fannie and Freddie Expected to Fall Sharply
More good news: Worst May Be Over for Foreclosure Epidemic
So very wrong: Freddie Mac Resisted Refis Because it Might Hurt Profits