I saw an article in USA Today yesterday I thought might be of interest to Minneapolis duplex and single family home owners who have either already gone through foreclosure, or are facing the prospect of having to do so.
The article reported that according to credit monitor TransUnion, studies are finding people who default on their mortgages alone are not as risky to lend to as those who lost a duplex to foreclosure and either defaulted on credit card and or auto loan payments at the same time or filed bankruptcy.
According to the study, those who were mortgage only defaulters also saw their credit score rebound much more quickly.
The study reported that only 5.8% of mortgage-only defaulters were at least 60 days late on a car loan they opened after they defaulted on their mortgage. However, 13.1% of those who had defaulted on multiple loans were more than 60 days late.
The mortgage-only defaulters also had lower 60 day delinquencies on credit cards, at 11.4% vs the 27.1 percent of the multiple defaulters who were behind.
What does this mean to duplex buyers and those who’ve lost property to foreclosure? Well, at some point, these people are going to prove to be an opportunity for a lender.
And, the lender may find, there might not be a lot of risk in doing so,