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What happens in the BA when mortgage payments are scheduled to go down, and people still default?
2010 Mar 11, 11:46am 1,241 views 2 comments
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The biggest predictor of strategic default is how deep underwater you are. It has very little to do with interest rate or payments.
I'm sure there are many stories like this. Defaults are still on the low side from Marin down through Santa Clara relative to elsewhere in the BA, but they have risen dramatically over the last year.
LarryPatrickMaloney
2010 Mar 18, 12:39pm
Get a clue MarkInSF,
Marin? Are you serious?
You better do some research.
Marin has 1,300+ defaults in some state of foreclosure, and more are coming.
Santa Clara has 12,000 +
Alameda has 15,000
San Mateo has 3,800 +
All of these numbers are according to RealtyTrac. Check it yourself. For free.
Also, this doesn't count the shadow inventory.
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 I have an interesting story.
My wife has a co-worker that has defaulted on her (the co-workers) mortgage. She lives in San Jose, and makes good money.
So, she instead of going through foreclosure, the bank has agreed to
do a short sale.
The woman stopped making payments a long time ago.
Her interest only loan, is due to reset in may.
The rate will go DOWN.
She is STILL defaulting. Even with a lower rate.
Now how is THAT going to affect the local BA fortress markets?
LarryPatrickMaloney
#housing