U.S. Foreclosures Rise Sharply in July: Financial News - Yahoo! Finance
Notice that we get all kinds of data about mortgage foreclosures, but nothing from any public source about common interest community foreclosures, or the state of their reserves, or assessment delinquency rates. That's one of the main problems with private governance. Nobody has a good picture on what is going on, except in their own neighborhood--and sometimes not even there.
LOS ANGELES (AP) -- Foreclosure filings rose 9 percent from June to July and surged 93 percent over the same period last year, with Nevada, Georgia and Michigan accounting for the highest foreclosure rates nationwide, a research firm said Tuesday.
1 comment:
The mortgage crisis is a consequence of too much money chasing borrowers borne out of historically low interest rates.
Traditional underwriting goes out the window and volume based underwriting takes over in which lenders try to get as many loans on the books as possible. Eventually the bad underwriting decisions come home to roost as we are now seeing.
Nearly a decade ago, a similar dynamic played out in the California workers' compensation insurance industry. Abundant, cheap reinsurance led insurers to abandon risk-based underwriting in favor of cash flow underwriting. Eventually about two dozen insurers became insolvent.
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