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FHA Mortgage Delinquencies

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CreditInspired
Community Leader
Super Contributor

FHA Mortgage Delinquencies

The delinquency rate for FHA mortgages, reserved for first-time homebuyers, jumped to a record high. 

Some homeowners are struggling to pay their mortgages amid the coronavirus pandemic as the ensuing recession continues to slam the labor market, according to a Monday report from the Mortgage Bankers Association. 


https://www.google.com/amp/s/markets.businessinsider.com/amp/news/mortgage-delinquencies-spike-year-...


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Message 1 of 11
10 REPLIES 10
blindambition
Senior Contributor

Re: FHA Mortgage Delinquencies

I can definitely see this! Las Vegas has a 28% unemployment rate. A high number of delinquent mortgages. Yet, our home sales are still booming at astronomical prices. Californians, Google, and Amazon moving into town.

Message 2 of 11
Anonymous
Not applicable

Re: FHA Mortgage Delinquencies

yeah, that's what I can't unserstand, how the hoausing market seems to be doing so well despite the default rate and with the increasing number of people close to it.

 

Google moved in here several years back and got a BIG TAX break for doing so. It came up for renewal last year and got another heavy tax break for staying. IMO if they were actually paying their share we could have a more improved infrastructure, aging water lines, streats, etc. go unaddressed making it even more expensive to repair later. 

 

The sad part is that they didn't really bring in any new jobs because the people needed to run the facility rquires a specific skill set that doesn't exist in this town. Thus had to bring in poople from other places to run the facility. Yet it still drove up Housing prices locally both for rent and purchase.

Message 3 of 11
blindambition
Senior Contributor

Re: FHA Mortgage Delinquencies


@Anonymous wrote:

yeah, that's what I can't unserstand, how the hoausing market seems to be doing so well despite the default rate and with the increasing number of people close to it.

 

Google moved in here several years back and got a BIG TAX break for doing so. It came up for renewal last year and got another heavy tax break for staying. IMO if they were actually paying their share we could have a more improved infrastructure, aging water lines, streats, etc. go unaddressed making it even more expensive to repair later. 

 

The sad part is that they didn't really bring in any new jobs because the people needed to run the facility rquires a specific skill set that doesn't exist in this town. Thus had to bring in poople from other places to run the facility. Yet it still drove up Housing prices locally both for rent and purchase.


All the same here. We got Google, Amazon, Raiders, and Golden Knights and their minor training league.

This was supposed to improve things. One bedroom apts went from an average of $950 to $1200. Average house average high $300 to mid $400's.

Message 4 of 11
tammyjk
Regular Contributor

Re: FHA Mortgage Delinquencies

People are staying put right now as well making for a tight market.  I bought my home during the last downturn and within 6 years, I now have 110k equity.  We thought about looking again but decided against it.  There are a whole lot of foreclosures about to hit the market in the next year or so.  People that got deferred payments will be hard pressed to pay those lump sums when they come due.  

 

I'm staying put!  I got a low rate last time around so refi doesn't even make sense for us right now.  

Message 5 of 11
sccredit
Valued Contributor

Re: FHA Mortgage Delinquencies


@Anonymous wrote:

yeah, that's what I can't unserstand, how the hoausing market seems to be doing so well despite the default rate and with the increasing number of people close to it.

 

 


Strictly my opinion but I think everything is just being delayed. Because of the forbearance clauses and foreclosure moratorium in the CARES act the true effect is yet to be seen. I believe it is artificially propped up right now and the chickens have yet to come home to roost. 

Message 6 of 11
FlaDude
Valued Contributor

Re: FHA Mortgage Delinquencies


@sccredit wrote:

@Anonymous wrote:

yeah, that's what I can't unserstand, how the hoausing market seems to be doing so well despite the default rate and with the increasing number of people close to it.

 

 


Strictly my opinion but I think everything is just being delayed. Because of the forbearance clauses and foreclosure moratorium in the CARES act the true effect is yet to be seen. I believe it is artificially propped up right now and the chickens have yet to come home to roost. 


That's my thought too. Until banks start foreclosing, prices probably won't drop. My daughter is looking for a house now and if anything, prices have gone up in the past few months because supply is tight due to fewer people selling. It seems that people who might normally be putting their homes on the market are sitting tight, and many houses going on the market are getting one or more full price offers within hours of being listed.

Scores: March 21 FICO 8: EX 810, TU 808, EQ 813
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Message 7 of 11
sccredit
Valued Contributor

Re: FHA Mortgage Delinquencies


@FlaDude wrote:

@sccredit wrote:

@Anonymous wrote:

yeah, that's what I can't unserstand, how the hoausing market seems to be doing so well despite the default rate and with the increasing number of people close to it.

 

 


Strictly my opinion but I think everything is just being delayed. Because of the forbearance clauses and foreclosure moratorium in the CARES act the true effect is yet to be seen. I believe it is artificially propped up right now and the chickens have yet to come home to roost. 


That's my thought too. Until banks start foreclosing, prices probably won't drop. My daughter is looking for a house now and if anything, prices have gone up in the past few months because supply is tight due to fewer people selling. It seems that people who might normally be putting their homes on the market are sitting tight, and many houses going on the market are getting one or more full price offers within hours of being listed.


I'm in a small business group with a real estate broker and his opinion is that we are absolutely at the top and is advising clients that if they had any desire to sell in the next 4-5 years to do it now otherwise they'll have to wait until a rebound happens. He may be wrong, I may be wrong, you may be wrong. I doubt it though.

Message 8 of 11
FlaDude
Valued Contributor

Re: FHA Mortgage Delinquencies


@sccredit wrote:


I'm in a small business group with a real estate broker and his opinion is that we are absolutely at the top and is advising clients that if they had any desire to sell in the next 4-5 years to do it now otherwise they'll have to wait until a rebound happens. He may be wrong, I may be wrong, you may be wrong. I doubt it though.


The bolded section above is my concern, I've tried to convince my daughter to hold off, but she doesn't want to wait a year or two to see if prices drop. I'm worryed that if she buys now she could end up seriously underwater in a couple of years.

Scores: March 21 FICO 8: EX 810, TU 808, EQ 813
AoOA: closed: 36 years, open: 25 years; AAoA: 11.8 years
Amex Gold, Amex Green, Amex Blue, Amex ED, Amex Delta Gold, Amex Hilton Surpass, BoA Platinum Plus, Chase Freedom Unlimited, Chase Amazon, Chase CSP, Chase United Explorer, Citi AA Plat, Sync Lowes, Sync JC Penney - total CL 145k
Loans: Chase car loan (35k/6yrs 0.9%)
Message 9 of 11
macinjosh
Senior Contributor

Re: FHA Mortgage Delinquencies


@blindambition wrote:

@Anonymous wrote:

yeah, that's what I can't unserstand, how the hoausing market seems to be doing so well despite the default rate and with the increasing number of people close to it.

 

Google moved in here several years back and got a BIG TAX break for doing so. It came up for renewal last year and got another heavy tax break for staying. IMO if they were actually paying their share we could have a more improved infrastructure, aging water lines, streats, etc. go unaddressed making it even more expensive to repair later. 

 

The sad part is that they didn't really bring in any new jobs because the people needed to run the facility rquires a specific skill set that doesn't exist in this town. Thus had to bring in poople from other places to run the facility. Yet it still drove up Housing prices locally both for rent and purchase.


All the same here. We got Google, Amazon, Raiders, and Golden Knights and their minor training league.

This was supposed to improve things. One bedroom apts went from an average of $950 to $1200. Average house average high $300 to mid $400's.


Don't forget the Raiders. (Oops! I'm tired this morning.) I know people that moved to Pahrump just for the Raiders. My cousin lives in Rancho Cucamonga and once things open back up he will probably spend more time in Vegas to go to Raiders games.


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Message 10 of 11
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