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Mortgage Delinquency Rate Continues to Plunge

2013 November 14 by

Report: Delinquency Rate Continues to Plunge

BY: ASHLEY R. HARRIS 11/13/2013

Homeowners are working harder to make timely mortgage payments, according recent data from TransUnion . The mortgage delinquency rate dropped 23.3 percent in the past year, ending Q3 2013 at 4.09 percent. Last year it stood at 5.33 percent. The mortgage delinquency rate also dropped on a quarterly basis, down 5.3 percent from 4.32 percent in Q2 2013, the seventh straight quarterly decline.

Around the United States, most states experienced a decline in their mortgage delinquency rate between Q3 2012 and Q3 2013. California, Arizona, Nevada, Colorado, and Utah experienced more than 30 percent declines in their mortgage delinquency rate. Three states—California, Florida, and Nevada—had double-digit percentage drops in the last quarter.

TransUnion cultivated the data from anonymized credit data from virtually every credit-active consumer in the United States. TransUnion’s forecast is based on various economic assumptions, such as gross state product, consumer sentiment, unemployment rates, real personal income, and real estate values. The forecast would change if there are unanticipated shocks to the economy affecting recovery in the housing market or if home prices begin to depreciate once again.

“This isn’t a sample data set,” said Tim Martin, group VP of U.S. Housing for TransUnion’s financial services business unit.

“We looked at all 52 million installment-based mortgages in the U.S. and the trend is clear—the percentage of borrowers willing and able to make their mortgage payments continues to improve,” Martin continued. “The overall delinquency rate is still high relative to ‘normal,’ but a 23 percent year over year improvement is great news for homeowners and their lenders.”

The credit agency recorded 52.31 million mortgage accounts as of Q3 2013, down from 54.23 million in Q3 2012. This variable was as high as 63.14 million in Q3 2008 prior to the housing crisis.

Viewed one quarter in arrears (to ensure all accounts are included in the data), new account originations increased to 2.34 million in Q2 2013, up from 2.09 million in Q2 2012. This is a major increase from just two years ago when there were 1.32 million new account originations in Q2 2010.

“New mortgage originations showed good growth through the second quarter of this year, largely the result of increased refinance transactions driven by low rates and increasing home prices,” Martin said. “However, mortgage rates started to increase right around Memorial Day, and when the data come out next quarter, we expect it to show that new originations are decreasing as a result.”

TransUnion’s latest mortgage report also found that the non-prime population (those consumers with a VantageScore credit score lower than 700) continues to represent a smaller portion of all mortgage loans, more than 50 percent lower than was observed in 2007. Non-prime borrowers constituted 5.82 percent of all new mortgage originations in Q2 2013. In Q2 2008, non-prime borrowers represented 12.69 percent of the total.

TransUnion is forecasting that the downward consumer delinquency trend will continue in the final three months of 2013. The delinquency rate will likely be just under 4 percent at the end of the year.

“New originations will be down and non-prime borrowers will start to re-emerge,” Martin said. “At this point we believe delinquency rates will continue to decline.”

©2013 DS News. All Rights Reserved.

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You Can Be Held Legally Responsible For Your Spouse And Child’s Medical Bills And Education In Colorado

2013 October 15 by

In Colorado parents and spouses can be held financially response for their kids and spouse’s medical and educational debts as well as other debts.   Legally, this is known as The Family Purpose Doctrine.

It’s codified in the Colorado Revised Statute at  CRS 4-6-110.   The statute states: “The expenses of the family and the education of the children are chargeable upon the property of both husband and wife, or either of them, and in relation thereto they may be sued jointly or separately.”  You can read all the annotations here: C.R.S. 14-6-110

This frequently comes up in my practice where the parents are sued by medical providers for medical services provided to their children.  This is especially true when they are uninsured or under-insured.

Another common example of this is when a spouse is admitted to a hospital for care.  Later, when the bill cannot be paid, the hospital sues both the patient and their spouse for the debt.  They are able to sue the spouse who did not receive the medical care because of this statute.

Medical debts have historically been one of the top causes of personal bankruptcy.  Fortunately, bankruptcy eliminates medical debt whether you received the treatment or are just being held financially responsible for it.

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You Saved My Home!

2013 June 4 by

I just got an email today from one of my chapter 13 clients who is finishing her chapter 13 plan.

“Hi Jesse!

Wow can you believe it’s been 5 years? … I have one last payment to make this month.    Can you feel the excitement??

I’m so relieved it is soon to be behind me.

You saved my home for me you know. I will never forget it Jesse, thank you.

– Leslie”

 

THANK YOU Leslie for trusting me and my team with your important legal issues.

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Financial Stress Is Horrible!!!

2013 May 14 by

Can’t think straight.

Can’t enjoy life.

Loose sleep.

Depression.

Insecurity.

Hopeless.

Crisis.

Panic.

…. maybe bankruptcy is the answer for you. Let’s talk.

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Chapter 7 bankruptcy meeting of creditors photo

2013 April 29 by

This is what the chapter 7 meeting of creditors room in Denver looks like. No judge. No jury. No torture devices. Good and boring. Just the way it should be. (Some days it can make the DMV look almost interesting).

Meeting of creditors take about 5 minutes each and they hold 45-60 a day. They ask the same 20 questions over and over.

Tip: Do it right the first time you go so you don’t have to endure sitting through other interviews a second time.

If you have a good attorney your meeting should be like a knife through warm butter.

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This is the building the meetings are held in: 1999 Broadway. Denver

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Serenity and Personal Bankruptcy: How to experience peace when life is not fair.

2013 March 28 by

Dealing with financial stress, bankruptcy, foreclosure, and the uncertainty of the future is overwhelming.

For the last 13 years I, Jesse Aschenberg, have had the great privilege of working with individuals, couples, senior citizens, single mothers, divorcing couples, and business men who are in crisis.   They are all in one stage or another of the grief.

I generally see two reactions to financial crisis.  One personality type is doing all they can to fight and control their situation as best they can.  The other has given up and has lost hope.    Nevertheless, both types are asking the same question, “why?”   Why is this happening?   Why me?

The serenity prayer can be a helpful tool to calm the emotional storm and help you make the right decision or to just be at peace in the moment about your current circumstances.

God grant me the serenity
to accept the things I cannot change;
courage to change the things I can;
and wisdom to know the difference.

Living one day at a time;
Enjoying one moment at a time;
Accepting hardships as the pathway to peace;
Taking, as He did, this sinful world
as it is, not as I would have it;
Trusting that He will make all things right
if I surrender to His Will;
That I may be reasonably happy in this life
and supremely happy with Him
Forever in the next.
Amen.

–Reinhold Niebuhr

 

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