The Home Front

Jumbo Prime Loans Going Bad at a Rapid Rate

By Luke Mullins

Posted: February 26, 2009

A new report from Lender Processing Services shows that even borrowers with decent credit are getting into trouble. (The data is through January 31.)

From the report (via Housing Wire):

Foreclosure starts continue to increase across product types over the past several months in spite of moratoria and mitigation.

Non-Agency Jumbo Prime starts have increased almost 125% since January 2008, the most of any product…

Though it should be noted that delinquency rates remain relatively low in comparison, over the last 12 months the rate of deterioration in jumbo prime has exceeded all other product.

Housing prices over the past 5 years

Many people who bought 800,000 home would have loved to purchase a 300,000 home. The difference was price appreciation fueled by crazy mortgages that made the bubble possible!!! I purchased a home for my daughter south of San Diego in 2005 for $283,000 new construction. 18 months later I sold it for $525,000 in 2 weeks. I had to review 15 offers. The market was insane.

Wayne Landon of IL @ Mar 04, 2009 12:27:19 PM

deliqunecy

AS the housing sector was allowed to be demolished, jobs in every sector were lost. Lost jobs, lost income, delinqent debt.

Delinquent debt, foreclosures, lost profit, huge losses.

Why didn't this problem start being resolved 3 years ago?

People with years and years of excellent credit have lost jobs. Self-employed people in every industry have lost income. No wonder mortgages are going unpaid.

Nothing is worse than not being able to earn a living.

common1sense of WA @ Feb 26, 2009 23:48:09 PM

Are you saying

that some people with okay credit scores should have bought $300,000 houses instead of the $800,000 house?

Muser of NM @ Feb 26, 2009 14:01:07 PM

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The Home Front

The Home Front

Associate Editor Luke Mullins tracks the treacherous housing market and explains how to unload a five-bedroom McMansion or even find that dream home.

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