August Monthly Member Call
Quantifying the Distressed Property Market
• 81% of homeowners believe their home won’t fall in value over the next 6 months.• 60% believed the value of their home had
fallen over the last year• 83% of all homes actually lost value during
that time
Distressed Property Perception
QUANTIFYING THE DISTRESSED PROPERTY MARKET
• Delinquency rate this quarter breaks the record set last quarter• More than 1 in 8 homes is delinquent or in
foreclosure• 2nd Quarter 2009 Mortgage Delinquencies
• Florida –23% (12% in foreclosure )• Nevada – 21%• Arizona – 16%• Michigan – 16%
Current Market Trends
QUANTIFYING THE DISTRESSED PROPERTY MARKET
Source: MBAA.org
Foreclosure Last Month
• 360,149 New Foreclosures in July Alone• July marks the third time in the last five
months where we've seen a new record set for foreclosure activity
• July foreclosures jumped 7% compared to June
QUANTIFYING THE DISTRESSED PROPERTY MARKET
Top 10 Foreclosure StatesState Total 1/every X HHNevada 15,753 70
California 80,775 165
Arizona 18,119 147
Florida 46,391 188
Idaho 1,764 358
Michigan 12,564 360
Illinois 14,218 369
Georgia 10,185 389
Oregon 3,608 446
Ohio 11,231 451
What does this tell us? The foreclosure problem is more a local one than a national one.
QUANTIFYING THE DISTRESSED PROPERTY MARKET
4.3% in Foreclosure8.86% in Default (30+ days late)
Mortgage Bankers AssociationBased on 45,000,000 mortgages
National NumbersAugust 20, 2009
Source: MBAA.org
QUANTIFYING THE DISTRESSED PROPERTY MARKET
Q2 2009 Mortgage Delinquencies
QUANTIFYING THE DISTRESSED PROPERTY MARKET
National NumbersAll Mortgages
Total Distressed Properties 9,550,0001
Total Predicted Sales 4,760,0002
1
2 NAR, Walt Molony
QUANTIFYING THE DISTRESSED PROPERTY MARKET
Prime & Subprime Loans
• 58% of new foreclosure starts originated in the well-to-do prime loan category, up from 44% last year
• Only 33% of foreclosures originated from subprime loans, down 49% last year
QUANTIFYING THE DISTRESSED PROPERTY MARKET
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QUANTIFYING THE DISTRESSED PROPERTY MARKET
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QUANTIFYING THE DISTRESSED PROPERTY MARKET
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On your Street
• Last year 1 in 10 homeowners had trouble paying their mortgage. An average neighborhood street has about 12 houses. Statistically, around 3 of those homes are having trouble paying their mortgage.
• Nationally, 1 in 8 homeowners are having trouble.
There’s 1 to 2 or more homeowners on every street in America that needs help!
QUANTIFYING THE DISTRESSED PROPERTY MARKET
Over 7 out of 10 homeowners go into
foreclosure without VISIBLEintervention.