Greg Cowart on Zillow
Greg Cowart - Mortgage Broker or Lender at The Securus Group
Greg Cowart - Roseville Loan Guy

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Local Mortgage Delinquencies Are Down

Good news? In this world? No way! I thought it was all doom and gloom…

For seven straight months mortgages delinquencies have fallen, even while the rate of homes in the foreclosure process and those repossessed by banks climbed. According to CoreLogic Systems, the firm that tracks the rate of delinquency for all homes with a mortgage in the four-county region, 10.47% of area homes are 90 days delinquent, including 3.21% that are in the foreclosure process and 1.04 percent that went back to the bank during August.

The foreclosure and repossession numbers were both up from July. But Sacramento’s 90-day delinquency figure of 10.47% is down from a high of 11.58% in January. The important number too look at here is that delinquencies are going down, seven straight months in a row at that. Even though foreclosures have gone up in that same time-frame, we can safely ignore that number because of how long it takes to foreclose on a home.

Those homes that were taken back by the bank in that period were from homeowners that were delinquent six months to a year before that, when delinquencies were higher. Now that delinquencies are going down, foreclosures six months to a year from now will also be lower.

This is good news for all of us, our local community, and economy. It’s not good news for those sitting on the fence about buying a home. I don’t think that home prices are going to skyrocket any time soon, not at all, but as foreclosure inventory goes down, prices will go up. If you haven’t bought a home you’re probably safe, probably safe for quite a while, but these trends show some strength for the Sacramento area real estate market down the road. Quite possibly sooner than some people think (remember the doom and gloom). With nine consecutive months of private-sector job growth, and seven straight months of mortgage delinquencies falling, I can see a more normal Sacramento market and economy. And it’s closer than I thought it would be…

~Greg

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