A lot of people are nervous about what they are reading in the newspaper and hearing on TV. But how can you blame them?
The media is bombarding people with reports about the housing decline and the sub-prime mortgage mess.
However, Chief ECONOMIST for the National Mortgage Bankers Association, Doug Duncan decided last week to set the record straight. In a private conversation, Doug said that people have nothing to worry about in Texas.
Some of his defenses were…
The foreclosure problem in this country is really a story about 7 states
The biggest foreclosure problem is in Michigan, Ohio and Indiana. These are predominantly manufacturing states
Since 2001, Michigan has lost 300,000+ jobs
The other 4 states are California, Florida, Arizona and Nevada. In each of these states there has been significant over building. 25% of the foreclosures in these states are on properties that are held by investors who were speculating
California & Florida have been hit very hard
35% of the homes in the USA do not have a mortgage
98% of the mortgages in the USA are performing
Only 9% of all mortgages are sub-prime
75% of all sub-prime mortgages are performing
In the other 43 states, foreclosures have fallen in 2007 from 2006
October 24, 2007
Putting Morgage News in Perspective
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