Raters Smell the Coffee at Last.

[gdcox]

‘We assumed that 100% of the 90-plus-day delinquent loans and 50% of the 60-day delinquent loans would be in foreclosure within five months.Due to current market conditions, we are assuming that it will take approximately 18 months to liquidate loans in foreclosure and approximately eight months to liquidate loans categorized as real estate owned (REO)’.

This is from S&P when downrating securities based on Prime mortgages.

It is not crystal clear to make a consistent time line from this quote, but it seems to imply a pipeline from decision by mortgagee to stop paying to appearance of that property as a REO sale is more than two years.
This is pretty amazing and confirms the talk of serious shadow inventory fuelling raising REO sales for a long time. It suggests that pay option ARMs will be driving REO sales well into 2011!

Is this a fair assessment?

[SD Realtor]

gd I think yours is a very fair assessment especially with Fannie and Freddie pushing foreclosure timelines out to 300 days in 21 states.

[SD Realtor]

gd I think yours is a very fair assessment especially with Fannie and Freddie pushing foreclosure timelines out to 300 days in 21 states.

[SD Realtor]

gd I think yours is a very fair assessment especially with Fannie and Freddie pushing foreclosure timelines out to 300 days in 21 states.

[SD Realtor]

gd I think yours is a very fair assessment especially with Fannie and Freddie pushing foreclosure timelines out to 300 days in 21 states.

[SD Realtor]

gd I think yours is a very fair assessment especially with Fannie and Freddie pushing foreclosure timelines out to 300 days in 21 states.

[Author]

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