Home Buyers: Waiting for Foreclosures? Don’t!

Are you waiting for a foreclosure to purchase a home?

I’ve got bad news for you.

We are at a historical low for mortgage delinquencies. The same historically low rates of the past 2 years keep mortgage payments affordable.

The highest 5 states for mortgage defaults show a rate of only 2.1%. And those delinquencies are DOWN year over year.

Meanwhile, the low inventory of homes for sale will keep prices stable, or drive them to continue higher.

Here is the latest data from Black Knight, an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. I’ve posted 2 charts here that show the trends for mortgage delinquencies.

First, the Top 5 states for delinquencies. Notice that they are nowhere near their historical peak, and most are incrementally down year over year:

Next is the Top 5 states for 90+ days of delinquencies, which is an indicator of possible foreclosures. Look at the loq percentages, and again notice the double digit decreases year over year:

Finally, here are the Top 5 for loans that changed to “non-current”, or went delinquent.

You can see the trends of delinquencies decreasing year over year.

For more details, the link to the full report is here.

Also, keep in mind that should a property go delinquent, that process can be as much as 90 days before the bank starts its process. And every state has due process whereby a homeowner has an opportunity to make their delinquency current. This is as long as 180 days in some states. 

And once those foreclosures start, seasoned investors like myself know that there is an entire secondary market that is able to absorb the low number of properties before they are ever made available at a public auction.

There is little or no public market for financially distressed properties. 

Instead of waiting for a crisis that is not materializing anytime soon – if ever, focus on the equity and wealth that your home ownership will bring you NOW.

You can find “good deals” without relying on foreclosures. Every day that you wait to buy a home is one less day you are building wealth and security. Start today to focus on a budget for your home purchase.