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Mortgage Delinquencies Fall As Housing Market Bounces Back

Aired 8/12/13 on KPBS News.

California's housing market is coming back into balance as mortgage delinquencies fall.

— The number of mortgage defaults in California has fallen so much that the housing market is once again being considered in balance.

Ian Muttoo

The nation's Mortgage Bankers Association said mortgage delinquencies have hit a five-year low.

The group's latest survey finds only about 6 percent of loans on one- to four- unit homes were entering or in the foreclosure process.

That's the lowest level since 2008.

San Diego State University real estate lecturer Dana Kuhn said that trend is also reflected in San Diego. The rebounding economy and rising prices get a lot of the credit.

"People who literally haven't been able to make payments, they've held on this long and gotten jobs and now they can," said Kuhn. "Along with that, increased confidence creates hope that if they can just get through the next few months, then they'll be okay. And, of course, higher prices mean fewer homes are upside down."

Mortgage Bankers said the foreclosure rate in California has come down so much that it is close to pre-recession levels.

Comments

Avatar for user 'Eddie89'

Eddie89 | August 12, 2013 at 1:54 p.m. ― 8 months, 2 weeks ago

Numbers be damned! House prices are sky high and "some" people are buying them, somehow! Have the flippers and investors returned to wreak havoc again!?

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Avatar for user 'JeanMarc'

JeanMarc | August 12, 2013 at 3:50 p.m. ― 8 months, 2 weeks ago

Mmikey - be careful... leftists don't like facts getting in the way of their agenda. They are going to spend the next few years doing everything they can to give Obama a good image so that the next democrat can be elected. Did you think it was funny how the most damaging parts of obamacare are being postponed? Convenient! The pain will not start until obamas term is up.

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Avatar for user 'Eddie89'

Eddie89 | August 14, 2013 at 2:45 p.m. ― 8 months, 1 week ago

If this is all political rigging by the Democrats, then how come housing prices are also rising in the UK? http://news.sky.com/story/1127850/housing-market-recovery-round-the-corner

No, I think that this is bigger than Democrats, Republicans, Libertarians, etc.

Follow the money and we all know where that leads to! And that's what's really driving this 2nd housing bubble.

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Avatar for user 'HECM142'

HECM142 | September 14, 2013 at 8:56 a.m. ― 7 months, 1 week ago

As we, as a society, grow older, we are going to have to figure out how to keep the money flowing in while still living in our own homes. A good bit of news coverage has focused recently on a concept called “reverse mortgages.” It is only available to people 62 years of age and older. Instead of putting money into a home’s equity, they are drawing the capital out by getting a monthly check. When the person dies, the lender gets paid. Reverse Mortgage Lenders Direct . com

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Avatar for user 'Peking_Duck_SD'

Peking_Duck_SD | September 14, 2013 at 10:18 a.m. ― 7 months, 1 week ago

JeanMarc, yes "leftists" are to blame.

Are Bush and Republican congress people "leftists"?

After all, they are the ones who encouraged de-regulation of mortgages in the run-up to the Great Recession that allowed people who couldn't afford homes to buy them.

And then the double whammy - - they tried to erode all safety nets as well.

Let's privatize social security, get rid of New Deal era protections like FDIC insurance and then cause a housing bubble.

That way not only will the housing bubble sink us into recession, when it does people will have no power against banks that fail and millions will lose social security income at a vital time.

Can you imagine how much WORSE the recession would have been had Republicans succeeded in privatizing social security?

Seniors have, on average, been able to weather the downturn better than other groups.

SS works, it's delivered for decades, it's literally meant the difference between life and death for millions of Americans.

But right wing dope politicians call it a "Ponzi scheme".

Safety nets are what allows capitalism to succeed, but the far right won't admit it.

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