Foreclosure wave gathers momentum

Thursday, August 6th, 2009 Bank Wrongs by DaveVW

August 6th, 2009, 2:00 am · 108 Comments · posted by Mathew Padilla

“There is no second foreclosure wave coming, says Sam Khater, senior economist, First American CoreLogic.

“To say there is a second wave implies the (current) wave has receded,” Khater told me. “I don’t see that the wave has receded.”

Khater shared his historical data of 90-day delinquency rates for Orange County, as well as the foreclosure-in-process rates and rates of REOs, or foreclosures on banks’ books. The 90-day rate includes all outstanding first mortgages at least three months late but not yet foreclosed. The foreclosure rate is just first mortgages with a notice of default or trustee’s sale filing. (Previously the person who distributes the report for First American told me the two rates did not overlap, but Khater, who compiles the data, said they do.)

If you look at the 90-day rate it has been heading straight up — it has not receded.”

Read more: http://mortgage.freedomblogging.com/2009/08/06/foreclosure-wave-gets-bigger/15037/