August Monthly Member Call

Quantifying the Distressed Property Market

• 81% of homeowners believe their home won’t fall in value over the next 6 months.• 60% believed the value of their home had

fallen over the last year• 83% of all homes actually lost value during

that time

Distressed Property Perception

QUANTIFYING THE DISTRESSED PROPERTY MARKET

• Delinquency rate this quarter breaks the record set last quarter• More than 1 in 8 homes is delinquent or in

foreclosure• 2nd Quarter 2009 Mortgage Delinquencies

• Florida –23% (12% in foreclosure )• Nevada – 21%• Arizona – 16%• Michigan – 16%

Current Market Trends

QUANTIFYING THE DISTRESSED PROPERTY MARKET

Source: MBAA.org

Foreclosure Last Month

• 360,149 New Foreclosures in July Alone• July marks the third time in the last five

months where we've seen a new record set for foreclosure activity

• July foreclosures jumped 7% compared to June

QUANTIFYING THE DISTRESSED PROPERTY MARKET

Top 10 Foreclosure StatesState Total 1/every X HHNevada 15,753 70

California 80,775 165

Arizona 18,119 147

Florida 46,391 188

Idaho 1,764 358

Michigan 12,564 360

Illinois 14,218 369

Georgia 10,185 389

Oregon 3,608 446

Ohio 11,231 451

What does this tell us? The foreclosure problem is more a local one than a national one.

QUANTIFYING THE DISTRESSED PROPERTY MARKET

4.3% in Foreclosure8.86% in Default (30+ days late)

Mortgage Bankers AssociationBased on 45,000,000 mortgages

National NumbersAugust 20, 2009

Source: MBAA.org

QUANTIFYING THE DISTRESSED PROPERTY MARKET

Q2 2009 Mortgage Delinquencies

QUANTIFYING THE DISTRESSED PROPERTY MARKET

National NumbersAll Mortgages

Total Distressed Properties 9,550,0001

Total Predicted Sales 4,760,0002

1

2 NAR, Walt Molony

QUANTIFYING THE DISTRESSED PROPERTY MARKET

Prime & Subprime Loans

• 58% of new foreclosure starts originated in the well-to-do prime loan category, up from 44% last year

• Only 33% of foreclosures originated from subprime loans, down 49% last year

QUANTIFYING THE DISTRESSED PROPERTY MARKET

We are here

QUANTIFYING THE DISTRESSED PROPERTY MARKET

We are here

QUANTIFYING THE DISTRESSED PROPERTY MARKET

We are here

We are here

On your Street

• Last year 1 in 10 homeowners had trouble paying their mortgage. An average neighborhood street has about 12 houses. Statistically, around 3 of those homes are having trouble paying their mortgage.

• Nationally, 1 in 8 homeowners are having trouble.

There’s 1 to 2 or more homeowners on every street in America that needs help!

QUANTIFYING THE DISTRESSED PROPERTY MARKET

Over 7 out of 10 homeowners go into

foreclosure without VISIBLEintervention.