This was recently posted on Mish’s excellent blogsite. One in eight homeowners in the US are now behind on their payments or in foreclosure?
The Mortgage Bankers Association noted that a record 12%, or 1 in 8 homeowners, in the US are now behind on their payments or in foreclosure. 10.6% of the mortgages in Florida are now somewhere in the process of actual foreclosure. (My seatmate here on the flight says the prices on the condos where he lives are now back to 1998 levels. It would be scary, he said, if you had to sell. There are new developments that only have 10% actual occupancy, as the bulk of the condos were bought for speculation. Now those 10% of buyers are having to shoulder all the fees for upkeep. Nobody will buy, because the upkeep costs can be more than the mortgage. It is a vicious cycle.)
Florida, Southern California, Phoenix and Las Vegas are in a lot worse shape than Puerto Vallarta. For the most part, people own their homes and condos here without holding any mortgages against them, they own them free and clear. There have been only a few foreclosures in the whole region. And there are few, if any projects that where 10% of the owners are stuck with paying 100% of the fees for upkeep. What a mess.
Tehnorati: vallarta real estate