Skip to main content

HELOC Delinquencies Are Rising Rapidly! Team Thayer #realestate #housing #market #news #realtor #realestateagent #oregon

Team Thayer Eugene Oregon Real EstateSecorienced year-over-year delinquency rate increases in two of the past six months, the first such increases in nearly four years (since June 2012), according to data released by Black Knight Financial Services on Monday.With a few million more HELOCs set to amortize over the next couple of years, there will likely be plenty of refinancing opportunities as homeowners look for a way to handle the higher payments they are facing.According to the April 2016 Mortgage Monitor, the increases were largely driven by an 87 percent spike in the number of delinquencies among 2005-vintage HELOCs that began amortizing in 2015 at their 10-year end-of-draw period. Heading into 2015, the 2005-vintage HELOCs made up about 17 percent of all active HELOCs in the United States.
nd-lien home equity lines of credit (HELOCs) have expe“Due to the large volumes in the 2005 vintage, those delinquencies are more noticeably impacting overall year-over-year HELOC delinquency figures, whereas up until six months ago, improved performance of other vintages had been sufficient to mask delinquency rate increases of vintages experiencing draw period expirations,” Black Knight reported.
According to Black Knight, the trend of rising delinquencies among HELOCs is likely to continue in the next couple of years, since HELOCs with a 2006 vintage—totaling about 1.25 million—began amortizing this year and accounted for 17 percent of all active HELOCS. HELOCs with a 2007 vintage currently account for about 18 percent of all active HELOCs.
The delinquency rates among 2006-vintage HELOCs already appears to be increasing, having crept up by 5 basis points over the first quarter of 2016, according to Black Knight.
There is a chance that HELOCs amortizing over the next year or two might take advantage of the low interest rate environment to refinance when they reach the expiration of their 10-year draw periods. The prepayment activity among 2006-vintage HELOCs has been higher in the last 12 months than what the 2005-vintage HELOCs have experienced, and the 2007-vintage HELOCs may similarly benefit from low interest rates, Black Knight reported.
Some 2006-vintage HELOCs may have difficulty refinancing due to larger balances and higher negative equity rates, which equate to larger payment shocks.
Over the past two years, approximately 30 percent of HELOCs reaching the end of their draw period were either paid off or refinanced. Whereas 2005-vintage HELOCs made up 17 percent of all active HELOCs at the beginning of 2015, that percentage shrank to 13 percent by the beginning of 2016.

www.teamthayer.com

Click  link Below To Find Foreclosed Homes In Oregon


Team Thayer www.teamthayer.com
Location: Eugene, OR 97401, USA

Popular posts from this blog

Grass Seed Video

Read more

Bankruptcy Filings Dip Even Lower! Team Thayer #realestate #housing #market #investor #News #oregon

Bankruptcy Filings Dip Lower Nationwide bankruptcy filings were 5 percent lower in October 2016 compared with a year earlier, falling even lower than last month’s reported decrease, according to October 2016 AACER bankruptcy data reported by Epiq Systems. Bankruptcy filings totaled 63,042 in October, which was an increase from September’s total of 64,614, and was approximately 2.4 percent higher than October 2015’s total of 63,042 (an increase of 1,572).  Year-to-date, there have been 656,125 bankruptcy filings nationwide for the past nine months of 2016 (about 65,613 per month), down from 2015’s year-to-date total through the end of October of 700,014 (about 70,001 per month). The average number of filings per day in October 2016 was 3,152 over 20 days, which is an increase from September’s daily average of 3,077 over 21 days. The extra filing day in September compared to October accounts for the slight increase in the number of filings in September; had October feature...
Read more

When Will Bank Foreclosurews ‘Normalize’? Team Thayer #realestate #investor #housing #market #news #oregon

With much of the talk surrounding the housing market centered on “normalization” or returning to its pre-crisis state, one metric which the market is watching is the distressed sales share—the share of REO and short sales that comprise total residential home sales. For February 2016, the distressed sales share declined by 2.9 percentage points over-the-year (and 0.4 percentage points over-the month) down to 11 percent, according to  data released by CoreLogic  on Thursday. At their peak in January 2009, distressed sales accounted for nearly one-third of all residential home sales (32.4 percent) but has been declining steadily since then. By comparison, the pre-crisis share of distressed sales was typically around 2 percent; CoreLogic estimates that if the current rate of year-over-year decline continues, the distressed sales share will reach the “normal” pre-crisis level in slightly more than two years. “Prior to the housing crash, the distressed share of total...
Read more