Foreclosure update May 2011Hello. Welcome to Todd Miller TV. You probably have seen some recent foreclosure numbers that have come out notably in articles that said that for the 7th month in a row of total foreclosure filings were down and that was heralded as great news, the economy is getting better and the foreclosure crisis is going to an end and you know it is interesting because that was the headline, but then as you read the article it really tells a different story.And I want to go over the numbers and why that is the case. So 7 straight months the number of actual homes that have been foreclosed has dropped and there is a reason for that, the reason for that was we spent 9 months ago when the robo-signing and all those lawsuits all hit so the banks basically backed off. They say, “Hey let’s back off and not forecloses as much as we are because let’s make sure we are doing everything the right way that your procedures are in order.”So I’m going to go through the numbers. Okay so April in foreclosed this is nationwide, okay and the number, another reason you have to be careful with nationwide numbers is they don’t always have to go to a hyper local market like your city or your area so for 70,000 homes foreclosed in April next step was the 7th straight month where it dropped and that means actually taken back by the banker sold with their party. It went to the process and it came— something happened.It wasn’t counted, it wasn’t postponed it actually transferred ownership and so you probably say well that is not that, that is the whole country if you do this out through the year that is about a million and it is about half of what it has been or what has been projected to be so if here are the other numbers you haven’t, you probably don’t realize okay. The only foreclosed and 70,000 in the houses but 220,000 that was the number of new filings so you know this are almost 3 times that so they are.They didn’t actually do many new foreclosures meaning actually foreclosures but the number of houses that they filed, they knew action on drastically rouse. Now here is the real scary number when you look at all this. 90-days late now these are just people today that are 90 days late. This doesn’t count the people tomorrow, next week, next month, next year or over the next couple of years that we are gong to be late, okay.90=day late on a very high probability of being foreclosed because once you get delayed you start to get penalties and other fees that makes it even more difficult to get back up to speed. That is 3.7 million people are 90 days late by their mortgage. Now if you do the math if at this rate the rate of 70,000 a month and at 3.7 million it is going to take 52 months which is over 4 years to get through the current inventory that is assuming that you know this number doesn’t change which we know is going to because actually what happens is when your people are, when the bank stopped foreclosing like this it incentivices people to stop paying because they see their neighbor who hasn’t made a payment two years.And then they go well why should I make my payment upside down 200,000 I will just stop paying too and I get to live here for free for 2 years. We see a lot of this people believe it or not after 2 years and not making their house payment. They go out and buy house cash because they have saved maybe 2,000 or 3,000 a month and they can buy and get themselves a condo or a small house for 50 to 60 grand so that is what a lot of what they are doing anyway.Those are the numbers, I just wanted to really touch that because we saw the headline it said foreclosures seven straight months that they have dropped. You have got to look deeper for the number and see what that really means. What this is; is a temporary blip because the banks have done what I predict based on this really and this is to see it start to pick up again. I think that they have sort of they have worked through all the government programs had have and all those.They are working through this robo-signing and it is going to start coming out quite a bit. I would say it is going to pick up here probably throughout the summer definitely into later this year. We have got years that is left. I mean it is going to take you know how long it is going to take do you get to do those 3.7 million, some of those yeah. So these people will get results some of them will get back on their payments, they will be able to do when someone get loan mods and some will find other ways.Short sale or something like that, but for the most part most of these people are going to be in this school probably so it is unfortunate it is going to take years to get out of it is the numbers sort of show. Anyway, that was the update for today. I just wanted to keep you up to speed of what is going on and make sure you have the accurate information; you are not just reading the headlines and not really digging into what they are really saying so I hope you enjoyed this and I hope to see you on another episode. Thanks.