Move over Dorchester, Back Bay foreclosures might be next.
The following is from The Wall Street Journal:
Loans to borrowers who bought pricey homes are going bad at a faster clip.
Barclays Capital notes the “disturbing trend”–worsening delinquencies among so-called jumbo loans that are too large for government backing. The investment bank tracks the share of loans that roll into delinquency every month, and nearly 0.88% of jumbo loans made in the first half of 2007, for example, went delinquent in March from February, up from 0.77% in the previous month.
Some of those delinquencies will become foreclosures. Foreclosure starts have jumped by 221% among jumbo loans made to prime borrowers, or those with good credit, according to March mortgage report from LPS Applied Analytics. That’s more than among any other loan type.
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