20 Nov 184-days to Resell Foreclosed Houses. And That’s the Good News!
The Wall Street Journal reported yesterday that “HSBC Sees Subprime Salvation.”
If this is “salvation” then we truly have driven expectations into the ground. HSBC, the large subprime mortgage lender also known as Household and HFC, has filed quarterly reports indicating things are improving for mortgage lenders. Here’s what constituted “good news” these days.
HSBC continues to foreclose on approximately 1,100 homes per month. But on the “upside” they’ve managed to actually sell more off than they’ve taken in, reducing their inventory of unsold foreclosed property by almost 1,000 in the last quarter. And it “only” took 184-days to sell those properties on average — almost 3-weeks faster than previously.
The icing on the cake: HSBC’s total losses on those properties held steady — at 52%. In other words, HSBC successfully kept up the drumbeat of foreclosures but sold off more of those homes slightly faster while still losing only half their total investment in the loan.
So good news for everyone. You know, except the investors who paid full value to invest in the mortgage-backed securities behind all this 50%-off lending. Oh…and the folks who lost their homes. But at least the foreclosure system is humming again so we have that going for us. Which is nice.
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