Bank repossessions drive up July foreclosures

We're in the 8th inning, Forclosures are increasing while new delinquencies have peaked. It's always darkest before the dawn. Peak liquidations should occur about one year from now.

OMG. Is that like Peak Oil?

Classic Riversider.

I guess you missed this nugget: "Repossessions coupled with the fact that we're still looking at 5 million seriously delinquent loans, many of which would normally already be in foreclosure, really suggests that what the banks are doing is managing inventory levels," said Sharga."

The lenders have barely started dealing with the problem.

Malthus I think we're saying the same thing. New 60 day delinquencies have gone down. I agree banks are managing the pipeline which translates into longer pipelines(transition times) from delinqunecy to foreclosre/reo/liquidation. We hit peak 60 day(excluding reo/foreclosure) a few months ago. What's happening now is the banks are beginning to process more foreclosures of which they have plenty to go. This is why I'm saying don't expect peak liquidations of mortgages for another twelve months. That's peak though, we'll still have elevated levels of foreclosure and liquidations for sometime after that.

First dip produced millions of short/foreclosures. 2001-2005 purchasers are very close to bumping up against their 'in' price. Second dip is a certainty the second dip even if it is 1/2 the size of the first dip produces=>??????? Foreclosures?

Riversider, dude you need to stop playing checkers and move up to a three dimensional chess set.

Not sure what that means. Everything I see shows that we're seeing a decline in "new defaults". It's still ugly out there, but at least the problem isn't growing.

You are lactose intolerant.
1) you eat 5lbs of Brie => massive explosive diarrhea. A day passes, just the runs.
2) then you go eat 2lbs of Brie. => run to the toilet, you fool.

Forgot the :)

Moving forward, we refine our debate limiting ourselves to economic constructs illustrated solely through the use of dairy products. To keep this conversation 'Kosher' I would ask that analogies not mix dairy and animal protein metaphors.
Thank You

Riversider,
Your basic argument is that less bad equals good.(If I hate cheese and I have to eat it, I pick swiss b/c it has holes so there is less actual cheese per bite)
w67,
Your argument is less bad is still bad. (The cheese is moldy...less mold, more mold, what the hells the difference...through it out!)
My question is...how will this effect the price of cheese?
My second question...what's that smell?

Not at all. I approach this from a transition matrix standpoint. The standard time line is loan stops paying, bank forecloses, property becomes REO and then gets liquidated. I'm just pointing out that the number of new loans entering the process(they stop paying) is declining. Basically I'm saying the pool of loans in our society is experiencing default burn-out.

but of course on numerous other threads you're happy to point out that all of the numbers are being fudged.

"It's always darkest before the dawn."

During some days in the year, it's darkest from about 5pm -- more than half the night before dawn. Near to the poles, it's darkest about six months before dawn. But here in NY real estate it might be a matter of a mere ten years before dawn.