foreclosure data
What is the average period of time before foreclosure typically takes place on a loan? One year? 5 years? 20?
I am looking for specific data on loan performance. In other words, what % of loans that originiated in 2000 were in foreclosure by 2001, 2002, 2003, 2004, 2005, etc. Looking to form some sort of payment pattern by loan origination date.
I know foreclosure can take place at any time, but say if you have a block of 1,000 loans, at what point can you have some confidence that 90%+ of these loans will not default or foreclose?
I’m not looking for a foreclosure timeline, I am interested in loan performance and how far into a loan term serious delinquencies and default/foreclosure takes place. Data split between ARM and fixed would be preferable.
I don’t want to predict anything. I want statistical data for this – actual industry experience.
It is not that simple. The quality of the underwriting and the amount of equity in the homes are much more important factors to consider to tell you if the mortgages are likely to default.
Essentially the more equity in the home, the lower the likelihood of foreclosure.
Also, the quality of the underwriting of the mortgages, does the borrower have sufficient income to pay the mortgage? Does the borrower have a good credit score? are big factors in determining whether or not the borrower is likely to default on the mortgage.
Also a borower is much less likely to default on a fixed mortgage than an adjustable mortgage where the interest rate and the payment is likely to adjust upward.
