Foreclosure!

[BOSS]

Dang whens it gonna stop?

The US housing market is killing the international money markets. First Mortgage, the 16th (16th!!) largest lender yesterday laid off 6000 employees... this coming on the heals of other blow ups in the last few weeks.

The Sub-prime market is coming to fruition, with those that got low rate (high risk) loans in 2004-2006 who's adjustable rates are coming up for conversion. In an article in this weeks Time magazine, they said some barrowers will see their monthly payment RISE by as much as $1512.00 more per month than they are paying now.

We in Michigan know Detroit is under the gun, with thousands of foreclosures the last two years. The article focused on Denver this time, and man... how do you sell a house in Denver when the builders are willing to sell new homes for $100K less than they are appraised at?

It's estimated that foreclosures will show a 55% increase this year over last, with next year being even worse.

Evidently South Florida too is having issues with thousands of new condos and homes going unsold?

Might be time to look for a vacation home?

 

[Connie]

This is beyond scary!

 

[Joe Mioux]

Yea, and that is why the stock market is seeing some wild fluctuations in indicators such as the Dow Jones Industrial average.

ONce we get through some of the fallout and the market begins to settle down, there will be buying opportunties.

 

[BOSS]

This is beyond scary!

And considering that Bear Sterns, came out last week, and said that TWO of their hedge funds, each worth $1.5 BILLION two months ago, are now basically worthless, the dominos are going to continue to fall and even get bigger.

Many world-wide hedge funds bought the risky mortgages as investments, paying for some with money from others, as consumers paid their payments, thing was, at the time many lenders did not even check income, and made loans often to people with either low, and in some cases no income.

Hedge funds in Austrailia and Germany last week had to receive bail out funds from their governments to keep them liquid.

Enron may be only a blip compared to this mess.

 

[Sher]

Dang whens it gonna stop?

Evidently South Florida too is having issues with thousands of new condos and homes going unsold?

Might be time to look for a vacation home?

Wait until Sept...that's when a bundle of new forclosures will hit and the market will be ripe down here. Did some marketing lately and in many office buildings, complete floors were empty...one had only one Lawyers office still running..lots of small strip centers are more than 50% empty yet on other areas just down the road from the same places, rents are sky high, builders are still doing construction of MacHomes...one south of me is over 15,000 square feet, already sold...at first I thought there was a Hotel going up..it has 13 bedrooms...I mean really...how do folks afford that and how are they still building in this market...I guess there are pockets that are still ok...should be an interesting couple of months.
Sher

 

[LORRIE]

South Florida (Miami in particular) was listed last week as the worst housing market in the country. I have never seen so many for sale signs in this area. It's going to be a very interesting season here, especially hard hitting to blue collar families. The much heralded tax cuts for homeowners amounted to $100 in my very modest home- and thats not the final assesment. Doubt that will make much of a difference to anyone. Oh , an the windstorm insurance doubled at least this year. Those condos are going to be bargan basement priced pretty soon.

 

[Kristine]

South Florida (Miami in particular) was listed last week as the worst housing market in the country. I have never seen so many for sale signs in this area. It's going to be a very interesting season here, especially hard hitting to blue collar families. The much heralded tax cuts for homeowners amounted to $100 in my very modest home- and thats not the final assessment. Doubt that will make much of a difference to anyone. Oh , an the windstorm insurance doubled at least this year. Those condos are going to be bargain basement priced pretty soon.

At my business referral group this AM, our Realtor mentioned we have 10,500 homes on the market in the metro area and they are seeing 12 closings a day on new purchases. Our side of Michigan is doing somewhat better than Detroit area but I don't thing we've seen anything yet.

 

[vnance]

The only positive thing I can add is that I just purchased a house that was going into forclosure and got it for a steal. It's 2836 sq ft in a great neighborhood and I only paid $235,000 for it!

 

[Mikey the Flower Guy]

The only positive thing I can add is that I just purchased a house that was going into forclosure and got it for a steal. It's 2836 sq ft in a great neighborhood and I only paid $235,000 for it!

good for you...it's time that things settled down a bit!!

 

[RJD]

I was reading in the USA Today about this. A couple with $90,000 combined income got a $567,000 mortgage! WTF? The first two years were interest-only, and the family was told that they could always re-fi after two years. Never mind interest rates two yeas ago were slightly above historic lows already. The problem now is that the market has dropped, so their house is worth less than the outstanding balance on the mortgage, and they can't re-fi. Plus, with both parents already working, and additional third or fourth jobs are going to be incremental increases in income only.

The banks need some new regulations. There are a number of GAAPs for lenders, and these were all discarded in the past few years. When Kathy and I bought our current house four years ago, the banks in our area put the screws to us.

 

[BOSS]

A couple with $90,000 combined income got a $567,000 mortgage! WTF? The first two years were interest-only,

And in many cases the original loans were with zero down, and zero interest for the first two years, with the first two years payments and income ratio figured at the zero interest amount.

The problem that is going to explode, is when these loans come to term, and the interest begins to be added to the payment, thus making the payment in some cases 500% higher than it was originally.

Foreclosures increase in number at a faster rate next year than they are this year, with many people losing not only their homes, but the monies put down and already paid. It's estimated that 30% are "upside down" in their mortgages, owing more than the property is worth in todays market.

 

[Mikey the Flower Guy]

whatever the ratio's ARE, it spells big trouble!!

 

[BOSS]

Just in

Bank of America this morning, infused $2 BILLION cash into Country Wide, the nations largest mortgage lender to shore up the accounts. This was in exchange for that amount in prefered stock in Country Wide.

On top of this, over 12,000 people have been fired THIS WEEK ALONE in the mortgage industry.

 

[Frank]

Good for you Vnance!

The only positive thing I can add is that I just purchased a house that was going into forclosure and got it for a steal. It's 2836 sq ft in a great neighborhood and I only paid $235,000 for it!

Vnance, I am interested in buying a house for a very low price. Did you buy it from the homeowner or the bank? How did you do it?

 

[BOSS]

Just in again

July's numbers were just released...

Foreclosures for the month of July are up 93% over the same moneth last year...

And the saga continues.

 

[vnance]

I purchased the home from the homeowner. I just kept looking at Realtracs and I saw this home was listed way under what I knew the value for the neighborhood was and then went in and made an offer. This particular neighborhood hardly ever has any homes for sale and when they do the listing prices are always above $300,000. Just keep an eye out and be ready to make a very quick decision.

 

[enraeh]

Gordon Gecko reincarnated for the 2K

I am interested in buying a house for a very low price.

So were a lot of other people, who were sold a bogus bill of goods by the "fast buck freddies" out there: Realtors, lenders, loan brokers and speculators. And before this there was the tech stock fiasco.
The whole thing reminds me of a late night infomercial. Automatic rich dad millionare win the cash flow free and clear amway scamway bison over the cliff american dream turned Trump worship hallucination.

 

[Tuberose]

Our area still seems pretty steady, haven't heard a lot of wailing and gnashing of teeth as yet, and the hubby builds houses. Our place will be paid for next year, the mortgage company better not mess that up! It's been a long slow road of living in a too small house, but we are glad we stuck it out with a low payment.

 

[bloomz]

Automatic rich dad millionare win the cash flow free and clear amway scamway bison over the cliff american dream turned Trump worship hallucination.

What a mouthful!


I love that commercial on tv where the woman leaves the bank with the chimpanzee on her back.


I do not understand finance, nor do I know much about art (but I know what I like). It always befuddles me when "the fed" sets interest rates, etc., and how much the economy is controlled.

I'd have to state the obvious - somebody at the top done skrude up our economy. I DON'T think this is an accident or a coinkidink.

I bet somebody in Texas is getting way rich off this.

 

[Jerry]

Ah Bloomzie, this goes way back to FDR's presidence. Thats when the Rockafellers, Morgans, etc........ took our gold, started the federal reserve (thats not really federal), and gave us legal tender(paper) in return. They control us. not Texas(W), W and family just figured out how to get rich with them.