Alex Charfan of the Certified Distressed Property Institute (CDPE) reported on the 4th Quarter (2008)foreclosure statistics put out by the Mortgage Bankers Association. Take a look at the numbers:

All Mortgages
3.30% in Foreclosure
7.88% in Default (30+ days late)
11.18% Total in Default

Prime Mortgages
1.88% in Foreclosure
5.06% in Default (30+ days late)
6.94% Total in Default

Subprime Mortgages
13.71% in Foreclosure
21.88% in Default (30+ days late)
35.59% Total in Default

FHA Mortgages
2.43% in Foreclosure
13.73% in Default (30+ days late)
16.16% Total in Default

VA Mortgages
1.66% in Foreclosure
7.52% in Default (30+ days late)
9.18% Total in Default

Note the dramatic difference between the number of homeowners who are actually in the foreclosure process compared to those who are 30 days or more late in payments. The FHA figures jump from 2.43 % in foreclosure to 13.73% in default…an 11% increase. The VA figures increase 6%, Subprime…11%. These numbers are a strong indication that the foreclosure crisis is going to continue to get worse before it gets better.

If you are continuing to shy away from working with homeowners in distress and short sales, you may want to reconsider. This segment of the market will be with us for quite awhile. The good news for Realtors is Fannie May has instructed their servicers NOT to negotiate your commissions up to 6%.

If you need help building and managing your short sale business, a real estate virtual assistant can help. My Team and I have earned our CDPE designations so we have the background necessary to support you. Take a look at our Short Sales In A Box and give us a call…we’re glad to help!!