Banks Can’t Hold Back Highend Mortgage Foreclosures For Long

[Arraya]

With the expiration of the first-time buyer tax credit on April 30, there are now two main props keeping the housing market afloat. One is the growing percentage of home sales financed by Federal Housing Administration (FHA) loan guarantees. The other is the refusal of banks to put on the market foreclosed homes over $300,000.
In this article, we will take a look at the second factor. A future report will examine the role of the FHA in keeping the market from collapsing.

snip

According to Fitch Ratings, mortgage delinquencies for prime jumbo mortgages soared to 10.3% in May as underwater owners walked away in droves. That spells serious trouble for the five states which account for 2/3 of all outstanding jumbo loans – California, Florida, New Jersey, Virginia and New York. The problem goes well beyond these states, however. Housing markets throughout the United States for $300,000+ homes are in for rough sailing and prices are extremely likely to be headed for a real plunge.

Read more: http://www.businessinsider.com/banks-cant-hold-back-highend-mortgage-repos-for-long-2010-7#ixzz0ucuKzmYo

[jpinpb]

It was interesting what they’re saying about Orange County. Makes you wonder about SD.

“Fannie Mae now requires an average down payment of 30% for securitized loans which it purchases or guarantees.”

If FHA were not in the picture, requiring 30% down would put a damper on things. But since we do have FHA for now, the market is holding on.

[jpinpb]

It was interesting what they’re saying about Orange County. Makes you wonder about SD.

“Fannie Mae now requires an average down payment of 30% for securitized loans which it purchases or guarantees.”

If FHA were not in the picture, requiring 30% down would put a damper on things. But since we do have FHA for now, the market is holding on.

[jpinpb]

It was interesting what they’re saying about Orange County. Makes you wonder about SD.

“Fannie Mae now requires an average down payment of 30% for securitized loans which it purchases or guarantees.”

If FHA were not in the picture, requiring 30% down would put a damper on things. But since we do have FHA for now, the market is holding on.

[jpinpb]

It was interesting what they’re saying about Orange County. Makes you wonder about SD.

“Fannie Mae now requires an average down payment of 30% for securitized loans which it purchases or guarantees.”

If FHA were not in the picture, requiring 30% down would put a damper on things. But since we do have FHA for now, the market is holding on.

[jpinpb]

It was interesting what they’re saying about Orange County. Makes you wonder about SD.

“Fannie Mae now requires an average down payment of 30% for securitized loans which it purchases or guarantees.”

If FHA were not in the picture, requiring 30% down would put a damper on things. But since we do have FHA for now, the market is holding on.

[MadeInTaiwan]

I think the banks will hold on much longer than most people expect.

I think it is the size of the defaults. If the losses are small, then the banks will be more willing to take a loss. However, the problem is so large that banks know selling will probably make them shut their doors. The choice is recognize the loss now and possibly shutter its doors, or take the drip drip drip of missed payments and hope/pray/wait for the market to rebound/stabilze enough.

Another possibility is that the banks are holding on to properties until they can build up enough reserves to be able to safely write off the losses.

Part of me wonders if this strategy will actually work. We end up a decade or more of low sales and high prices.

[MadeInTaiwan]

I think the banks will hold on much longer than most people expect.

I think it is the size of the defaults. If the losses are small, then the banks will be more willing to take a loss. However, the problem is so large that banks know selling will probably make them shut their doors. The choice is recognize the loss now and possibly shutter its doors, or take the drip drip drip of missed payments and hope/pray/wait for the market to rebound/stabilze enough.

Another possibility is that the banks are holding on to properties until they can build up enough reserves to be able to safely write off the losses.

Part of me wonders if this strategy will actually work. We end up a decade or more of low sales and high prices.

[MadeInTaiwan]

I think the banks will hold on much longer than most people expect.

I think it is the size of the defaults. If the losses are small, then the banks will be more willing to take a loss. However, the problem is so large that banks know selling will probably make them shut their doors. The choice is recognize the loss now and possibly shutter its doors, or take the drip drip drip of missed payments and hope/pray/wait for the market to rebound/stabilze enough.

Another possibility is that the banks are holding on to properties until they can build up enough reserves to be able to safely write off the losses.

Part of me wonders if this strategy will actually work. We end up a decade or more of low sales and high prices.

[MadeInTaiwan]

I think the banks will hold on much longer than most people expect.

I think it is the size of the defaults. If the losses are small, then the banks will be more willing to take a loss. However, the problem is so large that banks know selling will probably make them shut their doors. The choice is recognize the loss now and possibly shutter its doors, or take the drip drip drip of missed payments and hope/pray/wait for the market to rebound/stabilze enough.

Another possibility is that the banks are holding on to properties until they can build up enough reserves to be able to safely write off the losses.

Part of me wonders if this strategy will actually work. We end up a decade or more of low sales and high prices.

[MadeInTaiwan]

I think the banks will hold on much longer than most people expect.

I think it is the size of the defaults. If the losses are small, then the banks will be more willing to take a loss. However, the problem is so large that banks know selling will probably make them shut their doors. The choice is recognize the loss now and possibly shutter its doors, or take the drip drip drip of missed payments and hope/pray/wait for the market to rebound/stabilze enough.

Another possibility is that the banks are holding on to properties until they can build up enough reserves to be able to safely write off the losses.

Part of me wonders if this strategy will actually work. We end up a decade or more of low sales and high prices.

[Aecetia]

A bit off topic, but thought this was better than starting a new thread: bank officials under attack-

[Aecetia]

A bit off topic, but thought this was better than starting a new thread: bank officials under attack-

[Aecetia]

A bit off topic, but thought this was better than starting a new thread: bank officials under attack-

[Aecetia]

A bit off topic, but thought this was better than starting a new thread: bank officials under attack-

[Author]

Posts