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Irvine Housing Blog

Irvine Housing Blog

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60-day-Delinquent Loans Fall for First Time in Two Years

Posted: 28 Jun 2010 03:29 AM PDT

The ever-increasing delinquency rate broke its stride with the first statistical blip this month.  


Irvine Home Address ... 74 LINHAVEN Irvine, CA 92602
Resale Home Price ...... $710,000

Here is a little song I wrote
You might want to sing it note for note
Don't worry be happy
In every life we have some trouble
When you worry you make it double
Don't worry, be happy......

Ain't got no place to lay your head
Somebody came and took your bed
Don't worry, be happy
The land lord say your rent is late
He may have to litigate
Don't worry, be happy
Look at me I am happy
Don't worry, be happy

Bobby McFerrin -- Don't Worry, Be Happy 

Modifications rise sharply on some mortgage loans

60-day-delinquent loans fall for first time in two years, Fannie and Freddie say

By Amy Hoak, MarketWatch

CHICAGO (MarketWatch) -- Loan modifications through the government's Home Affordable Modification Program tripled in the first quarter compared to the fourth quarter, according to data that covers loans held by Fannie Mae and Freddie Mac, the Federal Housing Finance Agency said Tuesday.

Also, loans 60 or more days past due fell for the first time in two years, dropping by nearly 23,800 to about 1.7 million in the first quarter, according to the FHFA's latest quarterly Foreclosure Prevention & Refinance report.

Overall, the FHFA said various efforts to keep homeowners out of foreclosure, including loan modifications, short sales and deeds-in-lieu, rose 75% in the first quarter compared with the previous quarter, to a total of 239,000 completed "foreclosure prevention activity" efforts.

Permanent mortgage modifications through the government's Home Affordable Modification Program rose to 136,000 at the end of the first quarter, up from 43,000 in the fourth quarter. Homeowners must successfully complete a trial modification period in order to make their modification permanent.

About 66% of modifications completed in the fourth quarter reduced borrowers' monthly payments by more than 20%.

Meanwhile, cumulative refinance volume through the Home Affordable Refinance Program rose 53% to nearly 291,600 at the end of the first quarter, up from 190,180 in the fourth quarter. The program allows existing Freddie and Fannie borrowers who are current on their mortgage payments to refinance and reduce their monthly mortgage payments at loan-to-value ratios up to 125%.

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 federal home loan banks; the numbers in the report don't reflect the Federal Housing Administration's efforts to prevent foreclosures.

A broader view

Overall, the total number of homeowners receiving restructured mortgages since April 2009 increased to 2.8 million; also, half of homeowners unable to enter a permanent HAMP modification get an alternate modification with their servicer, according to a separate report Monday from the Department of Housing and Urban Development and the Treasury Department.

The 2.8 million figure "includes more than 1.2 million homeowners who have started HAMP trial modifications and nearly 400,000 who have benefitted from FHA loss- mitigation activities," the report said. "Of those in the HAMP program, 346,000 have entered a permanent modification, saving a median of more than $500 per month," See HUD and Treasury's monthly housing scorecard.

"The good news is the industry is doing more than the government modifications," said Faith Schwartz, senior adviser for HOPE NOW, a private-sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors. "They start with the government mods to see if they fit."

Treasury Secretary Tim Geithner said in a news release Monday: "The Administration's housing policies, combined with actions of the Fed, have lowered mortgage interest rates, helped stabilize home prices and reduced the rate of foreclosures, repairing some of the damage caused by the financial crisis to the financial security of millions and millions of American families."

Separately, the percentage of loans in foreclosure or with at least one payment past due was a non-seasonally-adjusted 14% in the first quarter, down from 15% in the fourth quarter of 2009, according to a Mortgage Bankers Association report in May. That works out to about 6.2 million loans somewhere in the delinquency or foreclosure process. See story on 14% of mortgages delinquent or in foreclosure.

Amy Hoak is a MarketWatch reporter based in Chicago.

Typical Irvine Ponzi

Atrocious borrower behavior is the norm here in Irvine. We were the home of subprime lending, and apparently many of our residents experimented with a variety of toxic financing.

  • Today's featured Ponzi bought this property on 11/13/2001 for $485,000. The property records show a $502,000 first mortgage, but I suspect that was a $402,000 first instead.
  • On 5/19/2003 they obtained a $63,400 HELOC.
  • On 1/26/2004 they got a $100,000 HELOC.
  • On 2/1/2005 they refinanced the first mortgage with a $634,500 Option ARM with a 1% teaser rate.
  • On 3/23/2005 they obtained a $80,000 HELOC.
  • On 8/10/2005 they opened a $100,000 HELOC.
  • On 11/3/2006 they refinanced the first mortgage for $688,000 and obtained a $85,000 HELOC.
  • Total property debt is $773,000.
  • Total mortgage equity withdrawal is $288,000 based on their purchase price.
  • Total squatting time is only 6 months.

Foreclosure Record
Recording Date: 04/15/2010
Document Type: Notice of Default


Irvine Home Address ... 74 LINHAVEN Irvine, CA 92602

Resale Home Price ... $710,000

Home Purchase Price … $485,000
Home Purchase Date .... 11/13/2001

Net Gain (Loss) .......... $182,400
Percent Change .......... 37.6%
Annual Appreciation … 4.3%

Cost of Ownership
$710,000 .......... Asking Price
$142,000 .......... 20% Down Conventional
4.80% ............... Mortgage Interest Rate
$568,000 .......... 30-Year Mortgage
$143,683 .......... Income Requirement

$2,980 .......... Monthly Mortgage Payment

$615 .......... Property Tax
$267 .......... Special Taxes and Levies (Mello Roos)
$59 .......... Homeowners Insurance
$145 .......... Homeowners Association Fees
$4,066 .......... Monthly Cash Outlays

-$722 .......... Tax Savings (% of Interest and Property Tax)
-$708 .......... Equity Hidden in Payment
$260 .......... Lost Income to Down Payment (net of taxes)
$89 .......... Maintenance and Replacement Reserves
$2,985 .......... Monthly Cost of Ownership

Cash Acquisition Demands
$7,100 .......... Furnishing and Move In @1%
$7,100 .......... Closing Costs @1%
$5,680 ............ Interest Points @1% of Loan
$142,000 .......... Down Payment
$161,880 .......... Total Cash Costs
$45,700 ............ Emergency Cash Reserves
$207,580 .......... Total Savings Needed

Property Details for 74 LINHAVEN Irvine, CA 92602
Beds: 4
Baths: 2 full 1 part baths
Home size: 2,478 sq ft
($287 / sq ft)
Lot Size: 6,937 sq ft
Year Built: 1999
Days on Market: 43
Listing Updated: 40315
MLS Number: S616662
Property Type: Single Family, Residential
Community: West Irvine
Tract: Othr

This property is in backup or contingent offer status.

Highly upgraded home in West Irvine! Very private yard, extra long driveway, Granite countertops.

real estate home sales


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