A bunch of people got forclosed on. That would be 7X the previous year. But don’t worry it is only because…
“the main culprit is the loss of home price appreciation and in some areas … at least mild declines in home prices,” … “Less appreciation equals fewer options to get out of a financial pinch.”
The dreaded soft landing strikes again!!! But don’t blame the buyers for getting upside down on the loan. Who could have predicted home prices might not continue to increase at 30% per year?
Clearly, 1 or 2 years of having to make minimum payment option payments is way longer than anyone should have to go without refinancing or selling at a huge profit.
It is the accursed glut of inventory! As we all know, home appreciation has always been the only practical way people have afforded homes.
And don’t worry about those so called “toxic loans”…
“LePage said he has yet to see evidence of a “huge correlation” between nontraditional loans and foreclosure in the area”
even though…
As of November, 67.1 percent of the loans granted in San Diego County — including home purchases and refinances — were interest-only and negative ammortization loans
and…
“We’re probably more vulnerable than other areas because our housing is so expensive,” Gin said. “Those nonconventional loans were probably the only way some people could have gotten into the market.”
but don’t worry…
Few experts believe the residential real-estate market or the San Diego economy is anywhere near a repeat of the 1990s trouble, but there continue to be signs of weakness.
Clearly you can’t be an expert if you believe the market is in trouble.
The experts do not anticipate serious problems…
because of the strength of the San Diego economy.
After all a whole 1 in 3 buyers don’t need to rely on creative financing. So we are in good shape.
There is no reason to panic unless…
“rates pop up a percentage point or more. We could see some serious trouble.”
[end sarcasm]
What?
I guess the economy is so strong 2 out of 3 buyers screwing themselves is OK.
If the rates are near all-time lows today, what are the odds they don’t rise a whole percentage point before home appreciation begins again?
