In 2004, millions of home owners tapped into the equity of their homes through home equity lines of credit. Their 10-year grace periods are now done and they’ve had to start paying. And that’s why HELOC delinquencies are now suddenly soaring.
In March, second-lien HELOC delinquencies – those behind a mortgage on a property — climbed 87 percent compared to a year ago, Black Knight Financial Services’ reports.
Delinquencies may continue to climb too. HELOCs taken out in 2005, 2006, and 2007 comprise 52 percent of all active lines of credit. In 2005, there were about 850,000 home equity lines; 1.25 million in 2006 and 2007. The grand financial total from just those three years: $192 billion.
The increases in HELOC delinquencies are the first annual rises since June 2012, Black Knight notes. An 87 percent spike in delinquencies among 2005 HELOCs over the past 12 months have been attributed to most of the recent spike.
Daily Real Estate News | Tuesday, August 30, 2016
Home owners who are renting out rooms using services like Airbnb are facing difficulties refinancing their mortgages, The Wall Street Journal reports.
Bank giants like Bank of America Corp. and Wells Fargo & Co. reportedly are subjecting [...]
CPi-MGMT offers industry leading service and attention to detail, fast response times and years of experience. We employ only the best and brightest Real Estate professionals in their fields. And yes, we charge less and pay more, but our bottom line is your satisfaction and partnering with the [...]