Welcome back thank you so much for Joining me in today's video because I Have an update for you guys regarding Foreclosures and mortgage delinquencies Here based on two reports from Adam as Well as Black Knight here the first Report I want to share with you guys is Actually from Adam or Atom regarding zombie foreclosures a Zombie foreclosure is a property that is In the foreclosure process that is Actually vacant here so it says this Year zombie foreclosures rise in the Fourth quarter across the United States As lenders pursue more delinquent Mortgages here so do zombie foreclosures Still exist so right now there's uh Around 321,000 pre-foreclosure properties I Should Define a pre-foreclosure because That they don't actually provide that in The report here so a pre-foreclosure in General means that the homeowner is at Least 90 days or more past due on paying Their mortgage so that's a pre- Forclosure property around 321,000 Nationwide out of those houses there There's only 893 properties that are vacant or are Zombie foreclosures that represents 2.78% of all pre-foreclosure properties Here so according to Adam here just Under 1.3 million us Residential Properties are vacant at the end of 20
2023 according to their analysis here I Can't say um how often I get comments Saying there's 10 million vacant Properties Nationwide and once those get Released on the market or become a Foreclosure the housing market is Actually going to crash however the data According to this report here State There's only uh 1.3 million vacant Properties Nationwide and we have over a 100 million properties uh Nationwide Here as well vacant or not to be exact The 1.3 million vacant houses represent 1.27% of the total of 101 million Residential Properties Nationwide those Vacant properties that have now become Zombie properties consist of just under 9,000 Nationwide uh continuing to make Zombie properties a thing of the past so Pretty well that out of all the Properties that are in the pre for Cultural process less than 9,000 that is A very very small fraction of the 101 million properties Nationwide so Here's a breakdown just under 102 Million houses Nationwide Residential Properties and about 13 million of those Are vacant around 1.3% so this is also something is shared As well because for investment Properties which they are defining that As a non-owner occupied property around 24 million properties uh Nationwide and 3.56% or around
$842,000 are considered vacant now one Thing I will challenge them regarding This is that just because a property is Non-owner occupied in other words not a Primary residence does not mean it's an Investment property gosh I know a family Who owns about 10 properties um across California and not a single one of those Is an investment property in which They're earning income from so uh this Number here of about 24 million Properties includes properties that are Vacation houses second houses Etc that Are not used for investment purposes Here in regards to bank-owned properties Uh that is a property in which the Homeowner got foreclosed on and the bank Or the lender now owns the property uh That is just under 15,000 houses Nationwide and 18.85% of those are Vacant or around 2,400 houses now if you guys are curious How these uh foreclosures how do it Compares to previous Quarters here uh This report here reveals there's around 321,000 Residential Properties that are In the process of foreclosure in the Fourth quarter of this year up 1.7% uh from the third quarter of this Year and up a whopping 12.8% compared to the fourth quarter of 2022 a growing number of homeowners have Faced possible foreclosure following the National moratorium of course that uh
Was in place thanks to the Caris act That was enacted back in March of 2020 but the federal moratorium was Lifted in the middle of 2021 here among These 321,000 pre-foreclosure properties uh About 8,900 sit vacant as a zombie foreclosure Here in the fourth quarter that figure Is also up slightly from the previous Quarter up by 1.4% but up by 15.3% compared to one year ago this Latest increase marks the seventh Straight quarterly increase however even Though it's up by 15% compared to 12 Months ago the total amount of zombie Foreclosures Still Remains very low just One in every 11,000 412 houses around The United States are a zombie Foreclosure according to the CEO of Adam He say the following Rising Equity Flowing from rising home values has not Only kept foreclosure cases from spiking Since the mororo lifted it also keeps Giving delinquent homeowners a valuable Resource they can use to either uh Stave Off eviction or sell houses and move on As a result we continue to see none of The wides spread abandonment that Followed the housing market crash after The Great Recession uh in the late 2000s Now one of the reasons why we're seeing This uh relatively low level forclosures Right now is because a lot of people
Have equity in their houses right now so According to a new report from Black Knight I this is published just a few Days ago here it says us mortgage Holders have some 16.4 trillion of equity in their houses Though of that total 10.6 trillion Dollar is what we refer to as tapable Equity meaning the amount a homeowner Could borrow against will keeping at Least 20% Equity stake in their property On top that because so many people have Equity in their houses right now if They're going through a financial Hardship one uh Avenue rather than Getting foreclosed on is just to sell Their house and get the equity out their House now of course not everyone has That option though of course because if You bought a house uh within the last One one year and you put a minimal down Payment of 0% or less than uh 3.5% uh those people are more Susceptible to uh foreclosures if they Lose their job have a financial hardship Etc uh so the vast majority of the People that are at greatest risk are the People who bought a house more recently And put a lower down payment to buy Their house and those people could be in A scenario in which they have no equity In their houses and because of that they Can't sell their house because the Lender is not willing to take on a loss
Uh such as a short sale for example uh Going back to this report from Adam here It says While most neighborhoods around The United States have few or no zombie Foreclosures the biggest increases from The third quarter of this year through The fourth quarter of this year in States with at least 50 zombie Properties are Kentucky zombie Properties are up 15% uh Connecticut up by 15% as well Well and we have Maryland Texas and California in contrast the largest Quarterly decreases among the states With at least 50 zombie properties were New Mexico zombie properties decreased By 15% then we had New Jersey Maine Nevada and Georgia they also touch on The vacancy rate for all Residential Properties as well so hope will provide Some context regarding do we really have 10 million vacant properties that are Going to hit the market and crash the Housing market here anyways the vacancy Rate of all Residential Properties uh Nationwide has remained virtually the Same for the six quarter in a row it Stand at 1.27% or one in every 78 properties Which is virtually the same as the 1.26% rate in both the third quarter of This year and the fourth quarter of 2022 And again that percentage of 1.27% represents just under 1.3 million
Vacant properties Nationwide okay let's Change gears uh slightly here and talk About a new report from Black Knight Regarding U mortgage delinquencies and Foreclosures for the month of September Here it says the national delinquency Rate Rose to 3.29% in September up uh 12 basis points From August and up by 13 basis points Compared to one year year ago uh that Actually marks only the second and the Largest annual increase in the past 2 And a half years so the increase uh on a Year-year basis is up by 13 basis points The biggest uh increase in the past two And a half years which of course makes Sense because we had virtually a very Very low level of delinquencies on a National level over the past several Years due to the fact that home prices Increase big time so to me it makes Sense that this this is actually the Biggest increase in about 2 and a half Years given that prices decreased in the Second half last year whereas before That we saw huge gains in prices in 2020 And 2021 however though despite this Rise the delinquency rate in mortgages Here is still 71 basis points or 71% points uh below the pre pandemic Levels back in September of 2019 now here's something that really Caught my attention though because loans U 30 days past due Rose by
48,800 or gain of 5.1% marking the fourth consecutive Monthly increase uh while the 60-day Delinquent population extended its own Streak of increases Rising by 3% that Actually marked the sixth month in which The uh 60-day population actually has Been increasing the reason why that I Say this really caught my attention Though was because when looking at early Stage uh delinquencies or uh 60 days uh Past due this is an early indication of Potential future Foreclosures uh keep in mind the Foreclosure process tends to take about A year or longer uh to process so when Looking at an early indication of Foreclosures you have to look at the Amount of uh deliquent mortgages we have Right now so this really caught my Attention regarding 60 days Um past du an increase for the past 6 Months in a row having said that what we Really should be focusing on though is Serious delinquencies that is at least 90 days or more pass to on your payment That actually Rose uh 7,000 uh but Remains 6.7% below September of 2019 levels While overall uh Delinquencies have increased the number Of loans in active foreclosure fell to 20 14,000 in September the lowest point Since March of
2022 and about 25% below preco levels Blog Knight also shared how each of These States fair because there's some Very big differences here so for example The states with the high share of Non-current U mortgages here actually Are these states right here Mississippi Leading the nation at a rate at 7.92% after that was Louisiana at 7.4 Then we had Alabama Indiana and Pennsylvania uh at 7.92% this is much lower than the 24% Peak we saw in October of 2005 uh which By the way Louisiana their Peak was also In October 2005 which is really impacted By um Hurricane Katrina that hit during The summer months of 2005 in contrast in Alabama Indiana and Pennsylvania The peak was set back in January of 2010 Just after the Great Recession um in Regards to that the peak there was Around uh 12 to about 16% for those States and of course that's much lower Than the current uh rates right now and The current rates right now are not too Far off the all-time record lows that Was set back in uh 2000 and also in 2023 in contrast here are the top five States that had the lowest share of Mortgage delinquencies here leading the Nation is actually in Colorado the rate Is only at 1.95% compared to Mississippi that was At
7.92% after that was Washington Montana Idaho and California uh something worth Mentioning here as well is the rate Right now at around 2% for these five States is not too far off the all-time Record lows that was in the range of What 1.5 to around 2% so big picture Here um overall delinquency rates uh Still Remains very very low but um has Been increasing as of late and of course I'll definitely keep it posted with L Developments make sure you subscribe to This channel I appreciate you have an Awesome day like And subscribe and we'll See you on the next Video
