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Just thought I'd share. Info published by FRB New York. I hope the links work.
Long Island Mortgage Distress: Analysis at the Neighborhood Level
The Federal Reserve Bank of New York today released Long Island Mortgage Distress: Analysis at the Neighborhood Level . The latest in the Bank's Community Affairs: Facts & Trends series, this report provides a fresh perspective on the region’s mortgage problems by examining distress at the Zip code level.
The areas in green don't really surprise anyone do they?
The only ones surprised are the residents of those green areas - Wyandach, Uniondale, Mastic, etc. They thought they were living the American Dream - make $5 an hour, buy a house for $450K, pay $200 a month, own the home in 30 years. They forgot about the exploding interest rate, taxes, insurance and maintenance.
Our calculations of negative equity include only first
liens because second liens are not consistently
available for all loans. Consequently, our calculations
are likely to underestimate negative equity. Inclusion
of second liens would potentially raise debt and lower
borrower equity.
^^ This right here tells us that this data is only the tip of the iceberg... Considering the popularity of taking a 2nd to beat the PMI (pretty much every mortgage broker will steer you towards that - even today!) and the general "WOO HOO FREE MONEY" HELOC spree of the past, most people are probably in trouble BECAUSE of the 2nd mortgage.
Quote:
Our Long Island data set contains about 61,000 active
nonprime mortgages, of which nearly 40 percent are
distressed: 18 percent are at least ninety days
delinquent, 21 percent are in foreclosure, and
2 percent are REO. Thus, we measure a stock of
distressed loans at a particular time.
Just wow!
I so wish we could get a hold of the raw data here.
^^ This right here tells us that this data is only the tip of the iceberg... Considering the popularity of taking a 2nd to beat the PMI (pretty much every mortgage broker will steer you towards that - even today!) and the general "WOO HOO FREE MONEY" HELOC spree of the past, most people are probably in trouble BECAUSE of the 2nd mortgage.
Just wow!
I so wish we could get a hold of the raw data here.
Here's the solution: get them all county jobs (teachers and police) - then they can pay their past due, and keep up with the current payments. It's a win-win, county gets the tax money, people keep their homes, neighborhood values improve.
The only ones surprised are the residents of those green areas - Wyandach, Uniondale, Mastic, etc. They thought they were living the American Dream - make $5 an hour, buy a house for $450K, pay $200 a month, own the home in 30 years. They forgot about the exploding interest rate, taxes, insurance and maintenance.
Wait, wait...that's incorrect. Nobody told them about the exploding interest rate, taxes, insurance and maintenance. It's not their fault that they bought a house they couldn't afford; the mortgage company said they could buy it.
(insert uber sarcastic icon here)
Wait, wait...that's incorrect. Nobody told them about the exploding interest rate, taxes, insurance and maintenance. It's not their fault that they bought a house they couldn't afford; the mortgage company said they could buy it.
(insert uber sarcastic icon here)
You are right! It's not their fault, let's blame the NYC school system (most of them emigrated from Queens) for failing to teach them how to read and write English. Must be all that social promotion bs.
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They forgot about the exploding interest rate, taxes, insurance and maintenance.
