• Welcome to AppraisersForum.com, the premier online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Credit Card delinquencies up

Tawfik Ahdab

Tawfik Ahdab

Senior Member
Joined
Feb 19, 2003
Professional Status
Certified Residential Appraiser
State
Oregon

“Credit card lenders wrote off $46bn in seriously delinquent loan balances in the first nine months of 2024, up 50 per cent from the same period in the year prior and the highest level in 14 years, according to industry data collated by BankRegData. Write-offs, which occur when lenders decide it is unlikely a borrower will make good on their debts, are a closely watched measure of significant loan distress.“



 
Just like invoicing. Never had 1 write off when i did cad, cash at door.

The cost of living, inflation, is the root of all evil.
 
Tom D said:
Just like invoicing. Never had 1 write off when i did cad, cash at door.
Click to expand...
If they planned on paying you, they could have used anybody.

Car loan defaults are up. Paying $25k above MSRP was not a good thing for banks. And now car sales have tanked. Instead of lowering prices the car companies are keeping them high to gain with high margins. I suspect lower prices would more than offset the defaults but what do I know? We are seeing dealers going bankrupt.

www.federalreserve.gov

Rising Auto Loan Delinquencies and High Monthly Payments

The Federal Reserve Board of Governors in Washington DC.
www.federalreserve.gov

Home foreclosures have been relatively benign. Up from 2022 but down even the last available quarter. (ATTOM is a property data aggregator)

ATTOM’s Q3 2024 U.S. Foreclosure Market Report, released today, reveals a drop in foreclosures, with 87,108 properties receiving filings — a 2% decrease from the previous quarter and a 13% drop compared to last year. September saw further improvement, with filings down 19% year-over-year. Overall, previous data from ATTOM reported dwindling foreclosure activity.​
​
CEO of ATTOM, Rob Barber, urged caution, however, commenting "While we are seeing a decrease in foreclosure starts and repossessions, it’s crucial to remain vigilant, as any economic disruptions or changes in interest rates could shift the current trend."​
​
Barber continued, "Moving forward, we anticipate foreclosure levels will stay relatively low, but there could be localized increases in areas struggling with affordability or other market pressures."​
 
Thanks for that link to auto loan delinquency data, Terrel.

As for the decrease in foreclosure starts and repossessions in Q3 2024, that seems anomalous considering the rising distress in the consumer loan market, unless these are being held back or being kicked down the road.
 
Tawfik Ahdab said:
As for the decrease in foreclosure starts and repossessions in Q3 2024, that seems anomalous considering the rising distress in the consumer loan market, unless these are being held back or being kicked down the road.
Click to expand...
I suspect the measurement and reporting have not changed, but the stress has been moved to categories that are not reported or otherwise visible. The prime example would be GSE sales of delinquent loan portfolios with an attached mandate that buyers offer restructuring. Plus, 99% of mortgages are backed by Federal agencies, each with a mandate to restructure, extend, and pretend.

Plus, the Federal government has become increasingly less honest and less transparent, no doubt "for our own good." Thirty years ago, we could generally measure that part of the population on public assistance because programs were visible and their funding was at least debated for show. Now, tax credits from the IRS allow dramatic increases in aid and theft and remain invisible. And, given the recent performance of the jobs creation counters, we know reports are slanted/falsified to manipulate voters during the next election cycle. And there is always a next election cycle.
 
Last edited:
The velocity of money is at a low point right now due to the fiscally stimulating policies of the Biden administration and their preference for government-directed growth which diverts money away from the private sector. This has a depressive effect on the common man's ability to transact commerce.
 
Tawfik Ahdab said:
Thanks for that link to auto loan delinquency data, Terrel.

As for the decrease in foreclosure starts and repossessions in Q3 2024, that seems anomalous considering the rising distress in the consumer loan market, unless these are being held back or being kicked down the road.
Click to expand...
I've been told that typically a person will pay the mortgage or rent first, pay the car payment next, and what's left over goes to credit card debt. As folks rack up more CC debt those minimum payments might become too much. Lose your job and your priority shifts to the car as you gotta get to work. Again, that's what I am told by a banker. But too many people bought cars priced well above MSRP and now as prices have deflated, their car is "under water" and so if they have a beater that gets them to work, they may tend to let that one over-priced one go back. And banks are trying to unload these at the auctions and are getting no bids.

Cars can be a real nightmare. They are so complex you have to have warranty (insurance) for major repairs. A nephew had a newish Ford PU and the rear end went out during Covid. No parts available, and the factory was worse than helpless. It took six months to get it fixed. The dealership finally took it upon themselves to find a rear end out of a wrecked one and installed it. A year later the rear end was making the same sort of noise as before. So he traded it in for a new Nissan truck...at least he got it at the MSRP, even though he had low miles on the Ford.
 
You must log in or register to reply here.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com
Back
Top