According to Lender Processing Services (NYSE: LPS), there are now more than 6 million delinquent mortgages in the U.S. A delinquent loan is any loan that is at least 30 days past due, which of course includes those currently in foreclosure. LPS is a loan servicing conglomerate that maintains a database of roughly 40 million mortgage loans at a given time, which gives them considerable perspective in terms of national trends and statistics. According to their calculation, the mortgage delinquency rate (MDR) is nearly 8 percent, which does not include mortgages that are in the foreclosure process. Therefore, the national foreclosure inventory is now estimated to be nearly 2.1 million. The actual mortgage delinquencies then total 4 million. Of those delinquencies, a staggering 44.3% are more than 90 days delinquent.
March 14th, 2012:
Can a lender deny my short sale just because I am not behind on payments?
A lender can decline a short sale for just about any reason, so long as it doesn’t violate federal discrimination laws. A lender is under no obligation to approve any short sale or modify the terms of any existing loan contract. If a lender does approve a short sale it is because that lender believes it to be in their best financial interest to do so.
We have consummated quite a number of short sales involving borrowers who were not behind on payments. In those cases, we were able to demonstrate to the lenders that the borrowers would soon become delinquent should the short sales not be approved.
For more on this topic, visit www.DestinFloridaRealEstate.com or email us at smith@realtor.com