San Joaquin Homes Community Blog

• The making work pay credit for most workers;
• American opportunity credit for parents and college students;
• Energy credits for homeowners going green;
• First-time home buyer tax credits,
• Sales or excise tax deduction for new car buyers; and
• The expanded child tax credit and earned income tax credit for low- and moderate-income workers.

The percentage of current and performing mortgages declined for the sixth consecutive quarter to 87 percent of the servicing portfolio, serious delinquencies rose to 6.2 percent, and foreclosures in process surpassed 1 million mortgages, according to the report. Serious delinquencies at the end of the third quarter increased to 3.6 percent of prime mortgages, an increase of 20 percent from the previous quarter and more than double a year ago.

Other findings from the report included:

• More than half of all modified loans re-defaulted within six months of modification, with re-default defined as 60 or more days delinquent or in foreclosure.
• Servicers implemented nearly 274,000 trial plans under the administration’s “Home Affordable Modification Program” (HAMP) during the third quarter.
• Servicers implemented nearly twice as many home retention actions as new foreclosures.
• More than 80 percent of the loan modifications in the third quarter reduced monthly principal and interest payments.

The complete report can be downloaded from the OCC and OTS Web sites, www.occ.gov and www.ots.gov.

• Roughly one in every seven mortgages either was past due or in foreclosure by the end of the third quarter—the highest delinquency rate in the 37-year history of the Mortgage Bankers Association’s National Delinquency Survey.  Two factors are expected to drive delinquencies even higher next year: Underwater homeowners and unemployment.  Nearly one in four homeowners currently owes more on their mortgage than their home currently is worth, and additional job losses could mean more borrowers will be unable to meet their mortgage obligations.  
  
  
• The performance of the national housing market is much less important than the local market, and sales and pricing trends will vary a great deal from one area to the next.  Some real estate industry experts forecast home prices in certain areas to continue their descent, while others will experience increases.  Consumers should contact their local REALTOR® to gather as much information about an area as possible and to help determine the right area for their needs.