Does this make sense? While the absolute numbers seem to remain more or less level, in fact, because inventory has been steadily removed from the market week after week, it may be fair to say that trustee sales are actually inching higher.
GS--I'm not sure that I would relate foreclosures to inventory on the market. Rather, it is related more to loans outstanding--a bad debt reserve is generally reviewed against the underlying basis. In looking for changes in loan performance, you look at non-performing loans against the backdrop of the entire portfolio. You can narrow your view against the backdrop of x type of loans v. y type of loans to look for There are companies reporting that these rates are increasing. But these rates are at historically low levels to begin with.
Two variables that will influence this figure are (1) rate resets and/or (2) income declines. The rate going up can price someone out of the payment, hence foreclosure and of course income decline (with or without a rate increase) could cause problems.
I'll continue to track, and we'll recognize that this number has no contextual backdrop other than me related in size and number to all others.
2 comments:
Does this make sense? While the absolute numbers seem to remain more or less level, in fact, because inventory has been steadily removed from the market week after week, it may be fair to say that trustee sales are actually inching higher.
GS--I'm not sure that I would relate foreclosures to inventory on the market. Rather, it is related more to loans outstanding--a bad debt reserve is generally reviewed against the underlying basis. In looking for changes in loan performance, you look at non-performing loans against the backdrop of the entire portfolio. You can narrow your view against the backdrop of x type of loans v. y type of loans to look for There are companies reporting that these rates are increasing. But these rates are at historically low levels to begin with.
Two variables that will influence this figure are (1) rate resets and/or (2) income declines. The rate going up can price someone out of the payment, hence foreclosure and of course income decline (with or without a rate increase) could cause problems.
I'll continue to track, and we'll recognize that this number has no contextual backdrop other than me related in size and number to all others.
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