Sign up for our FREE Monthly Email Newsletter
In addition to keeping in the financial know, you may be interested in checking your credit score and report.
¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.
²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.
³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.
4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.
Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.
Credit Trends: When Will Foreclosure Levels Start to Fall?
By Janet Dedrick
The apple falling on Sir Isaac Newton’s head—true or not—shaped modern physics and our understanding of the universe.
Can it help us understand the foreclosure market?
What goes up must come down.
The higher the climb, the harder the fall.
The U.S. housing market has clocked more than five years in an unprecedented, prolonged housing correction. Home prices are down 30 percent from the peak, in late 2005 as the housing market is “rightsizing.” This adjustments comes after home price increases, ranging from 10 percent to as high as 80 percent in the most speculative housing markets from 2001 to 2006. It’s the law of gravity at work.
Equifax U.S. Consumer Credit Trends documents that mortgage delinquency rates peaked in January 2010 at 8.07 percent and are currently at 6.80 percent. Foreclosure starts (recording of the first step in foreclosure process), a new metric Equifax is monitoring, were less than 0.50 percent in early 2006, but today are over 3 percent—almost nine times higher. In fact, foreclosure starts have been bumping around this level since early 2009. All the action is in the late-stages of mortgage nonpayment.
Typically, as nonpayment lingers, a loan is written off. In the case of mortgage loans, the legal action is foreclosure. Equifax U.S. Consumer Credit Trends documents that mortgage write-off levels approached 4 percent at the end of 2010 but have declined moderately due to current mortgage servicer foreclosure-processing issues.
Mortgage write-off options are foreclosure or bankruptcy. Unfortunately, foreclosure at this stage means the homeowner has lost his or her home. Foreclosure is complete. Bankruptcy, however, does not necessarily mean the homeowner has lost his or her home. Some homeowners may be filing bankruptcy as a “home retention” action, trying to buy time to become current on their homes and to rightsize their finances.
What is motivating these homeowners? Do they have equity in their homes? Are they becoming collateral damage of the Great Recession? Or are these homeowners delaying the inevitable?
Will we see the housing correction reverse and the housing market rebound? Equifax is monitoring the housing market throughout 2011 for a bottom. Stay tuned.
Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.