Tucson How Many F’s for a Single Property
September 21, 2007
Post Tags: homeowners_association , pmi_private_mortgage_insurance , second_mortgages , Tucson Real Estate
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Three (3), not in every state because there are some states which regulate one of these.
It is possible for a single property to have three 4clothesures. The property is held as collateral against a mortgage or mortgages.
In order not to have to pay PMI (Private Mortgage Insurance) a creative solution of a First and a Second Mortgage was/is used to circumvent the need for PMI when the borrower needed a loan for more than 80% of the purchase price.
Each mortgage is 4closed independently. This means any single home with a first and second mortgage gets counted twice because what is being 4closed is the mortgage NOT THE HOUSE which is collateral for each mortgage.
This can explain two for one, but that’s not all there can be a three for one. Three 4closthesures for a single property.
From Wikipedia on Home Owners Associations
In some U.S. states, including California and Texas, a homeowners association can foreclose a member’s house without any judicial procedure in order to collect special assessments, fees and even a fine. Other states, like Florida, require a judicial hearing. Foreclosure without a judicial hearing can occur when a power of sale clause exists in a mortgage or deed of trust.
So if a homeowner isn’t making their mortgage payments and they aren’t making their home owners assessment payments they can be subject to 3 4clothesures all of them counted in the 4closure rate.
Here is a headline from an article on September 18, 2007
Nevada, California, Florida post top state foreclosure rates
Nevada continued to register the nation’s highest state foreclosure rate, one foreclosure filing for every 165 households — more than three times the national average. The state reported 6,197 foreclosure filings during the month, a 21 percent increase from the previous month and more than triple the number reported in August 2006.
In the old days before second mortgages and homeowner associations with the ability to 4close it was one 4clothesure to one property. This is still how it is viewed by many.
In Tucson Home Owners Associations can place a lein on property, but they can’t 4close on them. Therefore the answer for Tucson is 2, but when looking at the national figures for 4clothesures, it can be 3 4clothesures to 1 property.
Can anyone see how this might impact the reporting of increased 4clothesure rates?
September 22nd, 2007 at 5:49 pm
{Can anyone see how this might impact the reporting of increased 4clothesure rates?}
No…
The bottom line is the numbers are up because the numbers are up. 2 or 4 or 10 per lot, it doesn’t matter. The year over year numbers are WAY up.
If the foreclosure stat has calculated the same for at least a year we can track the YoY metric and determine (without prejudice) if it is increasing, decreasing, or staying the same.
October 4th, 2007 at 6:13 pm
Hi Dave!
It’s been awhile, I hope you’re doing ok!
Take a look at this: Moodys Subprime Vintages Bitmap
October 4th, 2007 at 6:28 pm
bobby joe,
It has been awhile, I’ve been to busy to get back here much lately. I’m going to try and make the image so it can be clicked on and visible on screen.
Can you provide an explanation of what this graph represents. Or a link to the information about the graph. I’m lost without a context to go with the graph. It certainly looks interesting.
Thanks. I’ll have more soon. It has been very busy the past couple of weeks.