Article in the L.A. Times August 12. 2007

[no_such_reality]

That was some micro-lender. They have all of 27 properties, he’s turned and rented half of them the other half he’s attempting to sell.

Can you imagine Countrywide and Wells Fargo deciding to rent half of their foreclosures? Returning some 2500 units in the 2nd quarter concentrated in places like Chula Vista, Temecula, Folsom and Anaheim back to the rental market?

[bsrsharma]

“far from desperate”

Give it an year. Things will be just the reverse.

[bsrsharma]

“far from desperate”

Give it an year. Things will be just the reverse.

[bsrsharma]

“far from desperate”

Give it an year. Things will be just the reverse.

[patientrenter]

Lenders not desperate? What’s making them fail to lower their prices quickly enough to keep up with the new foreclosures?

Let’s see:

1. Can’t keep up with flood of REOs. (Hard to believe. Companies can trigger spending of millions per day for professional help on 24 hour notice if a company acquisition is planned. But they can’t get 10 top people to plan and implement aggressive pricing actions on an avalanche of REOs that could bury them?)

2. Don’t want to be first to acknowledge the problem

3. Hoping (and negotiating?)for a bailout (from lower interest rates, FNMA/Freddie support, easing of accounting rules, SEC rules, underwriting rules, agreement with CCB for them to buy more MBSs…)

Does anyone here at one of the big lenders have a high-level insight they can share with us?

Patient renter in OC

[patientrenter]

Lenders not desperate? What’s making them fail to lower their prices quickly enough to keep up with the new foreclosures?

Let’s see:

1. Can’t keep up with flood of REOs. (Hard to believe. Companies can trigger spending of millions per day for professional help on 24 hour notice if a company acquisition is planned. But they can’t get 10 top people to plan and implement aggressive pricing actions on an avalanche of REOs that could bury them?)

2. Don’t want to be first to acknowledge the problem

3. Hoping (and negotiating?)for a bailout (from lower interest rates, FNMA/Freddie support, easing of accounting rules, SEC rules, underwriting rules, agreement with CCB for them to buy more MBSs…)

Does anyone here at one of the big lenders have a high-level insight they can share with us?

Patient renter in OC

[patientrenter]

Lenders not desperate? What’s making them fail to lower their prices quickly enough to keep up with the new foreclosures?

Let’s see:

1. Can’t keep up with flood of REOs. (Hard to believe. Companies can trigger spending of millions per day for professional help on 24 hour notice if a company acquisition is planned. But they can’t get 10 top people to plan and implement aggressive pricing actions on an avalanche of REOs that could bury them?)

2. Don’t want to be first to acknowledge the problem

3. Hoping (and negotiating?)for a bailout (from lower interest rates, FNMA/Freddie support, easing of accounting rules, SEC rules, underwriting rules, agreement with CCB for them to buy more MBSs…)

Does anyone here at one of the big lenders have a high-level insight they can share with us?

Patient renter in OC

[dontfollowtheherd]

This guy is floatin’ down the river of d’Nile. He said it will get better in 2-3 years? lol. In three months he’ll take another 25% hit and start panicking. Did you see where the lender-owned homes are selling at a rate of 10%. Awful. It’ll be 5% and 1% soon enough. We’ll be lucky if we don’t see a recession in Spring of ’08. Batten down the hatches guys and gals cause a big storm is coming.

[dontfollowtheherd]

This guy is floatin’ down the river of d’Nile. He said it will get better in 2-3 years? lol. In three months he’ll take another 25% hit and start panicking. Did you see where the lender-owned homes are selling at a rate of 10%. Awful. It’ll be 5% and 1% soon enough. We’ll be lucky if we don’t see a recession in Spring of ’08. Batten down the hatches guys and gals cause a big storm is coming.

[dontfollowtheherd]

This guy is floatin’ down the river of d’Nile. He said it will get better in 2-3 years? lol. In three months he’ll take another 25% hit and start panicking. Did you see where the lender-owned homes are selling at a rate of 10%. Awful. It’ll be 5% and 1% soon enough. We’ll be lucky if we don’t see a recession in Spring of ’08. Batten down the hatches guys and gals cause a big storm is coming.

[dontfollowtheherd]

patient,

There’s nobody left at the big lenders. lol. Sadly, but true there’s not much they could tell you. I know LOTS of people in different facets of the biz and it’s all pretty ugly. The middle-east money that’s been holding up the premier coastal areas of O.C. is even drying up. Unless they just landed from Mars, no one wants to buy a home they think they will go for 30-40-50% less in a year or two. There are going to be way too many homes on the market for the feds to contend with, especially in Bush’s final swan song push for more defense (Iraq) and war chest $$.

[dontfollowtheherd]

patient,

There’s nobody left at the big lenders. lol. Sadly, but true there’s not much they could tell you. I know LOTS of people in different facets of the biz and it’s all pretty ugly. The middle-east money that’s been holding up the premier coastal areas of O.C. is even drying up. Unless they just landed from Mars, no one wants to buy a home they think they will go for 30-40-50% less in a year or two. There are going to be way too many homes on the market for the feds to contend with, especially in Bush’s final swan song push for more defense (Iraq) and war chest $$.

[dontfollowtheherd]

patient,

There’s nobody left at the big lenders. lol. Sadly, but true there’s not much they could tell you. I know LOTS of people in different facets of the biz and it’s all pretty ugly. The middle-east money that’s been holding up the premier coastal areas of O.C. is even drying up. Unless they just landed from Mars, no one wants to buy a home they think they will go for 30-40-50% less in a year or two. There are going to be way too many homes on the market for the feds to contend with, especially in Bush’s final swan song push for more defense (Iraq) and war chest $$.

[rocket science]

This was a good article, I am glad someone posted it.

The very end summed it up.

"It's got to get worse before it gets better, said Michael Davin, executive vice president of Catalist Homes in Hermosa Beach, echoing the new mantra of the real estate business.

"We need a shakeout to stabilize the market," he said. "Lenders are going to have to start cutting prices big time."
 

There is another Article today too.

Credit fears may curb home sales

http://www.latimes.com/business/la-fi-escrow13aug13,1,2680054.story?coll=la-headlines-business&ctrack=1&cset=true

A paragraph that must certainly have an effect.

"Mortgage broker Ruben Perez started seeing lenders change or eliminate their mortgage programs for riskier sub-prime loans about six months ago, and they seemed to do so every quarter. Then lenders started sending brokers notification of changes every month. Within the last week or so, their notices started coming every day and included changes in loan programs affecting even the best borrowers.

rs

[rocket science]

This was a good article, I am glad someone posted it.

The very end summed it up.

"It's got to get worse before it gets better, said Michael Davin, executive vice president of Catalist Homes in Hermosa Beach, echoing the new mantra of the real estate business.

"We need a shakeout to stabilize the market," he said. "Lenders are going to have to start cutting prices big time."
 

There is another Article today too.

Credit fears may curb home sales

http://www.latimes.com/business/la-fi-escrow13aug13,1,2680054.story?coll=la-headlines-business&ctrack=1&cset=true

A paragraph that must certainly have an effect.

"Mortgage broker Ruben Perez started seeing lenders change or eliminate their mortgage programs for riskier sub-prime loans about six months ago, and they seemed to do so every quarter. Then lenders started sending brokers notification of changes every month. Within the last week or so, their notices started coming every day and included changes in loan programs affecting even the best borrowers.

rs

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