Tags: rick sharga | housing | foreclosure | homes

Carrington Mortgage's Sharga to Moneynews: End to Foreclosure Crisis in Sight

By    |   Friday, 10 May 2013 07:47 AM

Rick Sharga, the executive vice president of Carrington Mortgage Holdings, said the end of the foreclosure crisis is in sight.

"We can finally say with some degree of certainty that we’re looking at the end of the foreclosure crisis" Sharga told Newsmax TV in an exclusive interview.

"It’s not over yet. There are probably somewhere in the neighborhood of 2 and a half to 3 million seriously delinquent loans or loans that are already in foreclosure and we’ll need to work through that pipeline of troubled loans before we can really officially declare the foreclosure crisis over."

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Bloomberg News reported Thursday that April foreclosure filings tumbled to a six-year low as cheaper mortgages and strong home demand enabled struggling owners to refinance or sell before losing their properties.

Editor's Note: Save, shop and invest like an insider! Our experts lead the way each month in The Franklin Prosperity Report. Click here to learn more.

A total of 144,790 properties received notices of default, auction or seizure, down 5 percent from March and 23 percent from a year earlier, RealtyTrac said. It was the lowest tally since February 2007. One in 905 households got a filing.

Sharga describes loans that have been issued in the last three years as "performing at better-than-historical numbers," running at about half the delinquency rates normally expected.

"There are very few new loans going into that troubled loan pipeline and so it will probably take another two, two-and-a-half years to work through the backlog," he said. "It will take longer in some states like New Jersey, New York and Florida, where the foreclosure process is very long, but we can finally see a light at the end of the tunnel."

Sharga also discussed if the apparent rebound in housing is built on a solid foundation, or if there is a price bubble.

"I don’t think we’re looking at a bubble," he said.

"If you looked at what prices would have been like if we had avoided the whole boom and bust cycle that we saw earlier in home prices, it just sort of gradually moved up at an average rate," he said.

"We’re still a little bit below where we might have been," he said.

"Also, in some of the markets that have had the most dramatic price increases, you can still buy homes below replacement costs. So there’s still more room yet to come. If you look at where a lot of home prices are increasing the most rapidly, it tends to be the markets that had the biggest price drop."

Editor's Note: Save, shop and invest like an insider! Our experts lead the way each month in The Franklin Prosperity Report. Click here to learn more.

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Rick Sharga, the executive vice president of Carrington Mortgage Holdings, said the end of the foreclosure crisis is in sight.
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Friday, 10 May 2013 07:47 AM
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