For Real Estate Professionals Seeking a Market Edge
Home Mortgage Delinquencies Higher in Final Quarter of 2009
The percentage of homeowners delinquent on their respective monthly mortgage payments reached another record during the last three months of 2009, and the pace at which they fell behind took a turn for the worse. At the close of the 4th quarter, 6.89% of mortgage payments were 60 or more days past due, up from 4.58% in the final three months of 2008. The previous record-high delinquency rate occurred in the third quarter of 2009, at 6.25%. The latest report marked the 12th consecutive quarter that delinquency rates have risen from the previous year, representing three years of increased delinquency.
More worrisome was that the quarter-to-quarter trend spiked after declining in each of the previous three quarters of 2009. The highest increase in 4th Quarter delinquency rates compared to the previous quarter were in the District of Columbia, Louisiana, and Delaware. The lowest delinquencies remain in North Dakota, at 1.8%; and South Dakota at 2.5%. Many experts believe that foreclosures will continue to rise this year, peaking between 7.5% and 8%. The situation is expected to worsen in Nevada, where as many as one in five mortgage borrowers may be delinquent by the middle of the year.
We will keep you posted…
$9,500,000 Anchored Retail Center Loan Quote
Penstar recently obtained a loan quote for the refinance of an anchored shopping center in Southern California. The lender will provide a $9,500,000 new first mortgage (65% loan to value) at a fixed interest rate of 6.85% for 10 years with a 30-year amortization. The lender has also offered the option of a 5 year fixed term at 6.5%; resetting the rate for the second 5-year term. For more information, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.
Helpful Humor
The best antidote for those challenging transactions is to take a moment to have a hearty laugh. Helpful humor is our way of infusing laughter into your work-week
“Modern Proverbs” He who laughs last, thinks slowest. Depression is merely anger without enthusiasm. The early bird may get the worm, but the second mouse gets the cheese. Light travels faster than sound. That is why some people appear bright until you hear them speak. …and on the other hand, you have different fingers… Why do psychics ask your name? If you think ‘nobody cares,’ try missing a couple of mortgage payments. |
30
Day Libor |
10-Year
Treasury |
Prime |
0.32% |
3.74% |
3.25% |
Penstar Realty Advisors can be reached at (818) 883-9600.
Our offices located at:
21700 Oxnard Street, Suite 1870, Woodland Hills, CA 91367