Friday, September 28, 2007

How Are The Adjusting Loans Affecting Us?

I was having a conversation the other day with an agent and the topic of loans adjusting came up. I told him I had some information on loans and the month they are adjusting and he made the comment that when we start to see a decrease in the number of loans coming up for adjustment that could be one of the first signs the market is improving. I think the logic is that the properties that these loans on are future foreclosures and bank owned properties. If the number of these properties that have loans that are being recast decreases then so will the number of foreclosures and properties going back to the bank. These are the types of properties that are dragging the market down. The Chart above was sent to me by a company called CoreLogic that has been keying data on these adjustable rate loans for years now. As you can see from the chart that the number of loans in the county that are adjusting is beginning to decrease. This would appear to be one more sign that we are getting closer to seeing the market pick back up. A few months of data might not be enough to really get excited about, but I do think the direction of the numbers is certainly down. I would love to hear your comments.

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