Recently the Center for Responsible Lending (CRL) released a chart compiled from data from the Mortgage Bankers Association regarding the number of mortgages at risk in the United States.
They estimate that 13% of US Mortgages are now past due. Even though the government passed the Making Homes Affordable legislation last fall the number of loan modifications that have actually been completed is miniscule in comparison to the potential default rates.
The CRL also suggests that the 1.5 Million loans already lost to foreclosure are just a drop in the bucket. They predict that over 13 Million loans could be lost to foreclosure in the next five years. Read: Snapshot of a Foreclosure Crisis -15 Fast Facts to see all of the data.
These statistics aren’t meant to alarm or mean that the market in Northern Virginia is going to be hit by some new crisis. It is just a reminder that we have a ways to go before the real estate market across the nations stabilizes. If you are thinking of buying a home today you need to understand that the current market conditions are not about flipping a property for a profit but about buying a home to live in for at least five year.