U.S. Mortgage Delinquencies Reach a Record High - NYTimes.com: "The combined percentage of those in foreclosure as well as delinquent homeowners is 14.41 percent, or about one in seven mortgage holders. Mortgages with problems are concentrated in four states: California, Florida, Arizona and Nevada. One in four people with mortgages in Florida is behind in payments.
Some of the delinquent homeowners are scrambling and will eventually catch up on their payments. But many others will slide into foreclosure. The percentage of loans in foreclosure on Sept. 30 was 4.47 percent, up from 2.97 percent last year."
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Let's see. What do CA, FL, AZ, and NV have in common? Lots of sun. What else? Oh, yes. These are states where CIDs have been the predominant form of new housing in recent years. So that means the foreclosures to come will place even heavier burdens on the remaining owners in all those condo associations and HOAs.
3 comments:
More evidence that HOAs do not preserve or enhance property values. In fact, rather compelling evidence that HOA burdened property is a high-risk "investment". You are unlikely to recover your investment. The upside is none (certainly not attributable to the HOA). The downside exposure is unlimited because of the HOA.
But waittaminute! What happened to all that "Hope and Change" we were PROMISED? One's purchase in an HOA is NOT an investment, it is anything but that. Read Villa Appalling! Destroying the Myth of Affordable Community Living. Read the Chapter on "Myth of Investment." Every Multiple Listing Service in this Country bears out that Condos did not hold their value compared to un-deed restricted properties.
What? It is soo bad? I didn't really have a doubt that every fifth mortgage payers have problems to pay on time. Hopefully it will improve in near future. Although some predictions are optimistic about that,the real trend is not heading in this way.
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