Bigger Wave of Loan Defaults Coming

[DWCAP]

Perhaps I may miss understand, but isn’t alot freddie/fanny debt being bought by foreigners? Lower risk of loss of nominal dollars, but in foreign currencies, it seems alot riskier. But I dont speculate or follow currienies, so I can totally be wrong.

I guess the reality of just too much money seeking too few good investments is still reality.

[SD Realtor]

Conveniently omitted is that it now can take up to 300 days to foreclose, that the GSEs are also rewarding every step any lender takes to rewrite loans or sell short rather then foreclose, and oh yeah let’s see who the new president is next year.

Does anyone think that guys like Schumer and Dodd are through trying to socialize our housing and rescue the lenders?

I am not trying to downplay the significance of the second wave because I have pretty much shot all my bullets and used every excuse for putting off my own purchase. However again, the more I look at things, the more I see a very prolonged stagnant market rather then a market that depreciates fast and loses significant value in a relatively short timeframe.

[SD Realtor]

Conveniently omitted is that it now can take up to 300 days to foreclose, that the GSEs are also rewarding every step any lender takes to rewrite loans or sell short rather then foreclose, and oh yeah let’s see who the new president is next year.

Does anyone think that guys like Schumer and Dodd are through trying to socialize our housing and rescue the lenders?

I am not trying to downplay the significance of the second wave because I have pretty much shot all my bullets and used every excuse for putting off my own purchase. However again, the more I look at things, the more I see a very prolonged stagnant market rather then a market that depreciates fast and loses significant value in a relatively short timeframe.

[SD Realtor]

Conveniently omitted is that it now can take up to 300 days to foreclose, that the GSEs are also rewarding every step any lender takes to rewrite loans or sell short rather then foreclose, and oh yeah let’s see who the new president is next year.

Does anyone think that guys like Schumer and Dodd are through trying to socialize our housing and rescue the lenders?

I am not trying to downplay the significance of the second wave because I have pretty much shot all my bullets and used every excuse for putting off my own purchase. However again, the more I look at things, the more I see a very prolonged stagnant market rather then a market that depreciates fast and loses significant value in a relatively short timeframe.

[SD Realtor]

Conveniently omitted is that it now can take up to 300 days to foreclose, that the GSEs are also rewarding every step any lender takes to rewrite loans or sell short rather then foreclose, and oh yeah let’s see who the new president is next year.

Does anyone think that guys like Schumer and Dodd are through trying to socialize our housing and rescue the lenders?

I am not trying to downplay the significance of the second wave because I have pretty much shot all my bullets and used every excuse for putting off my own purchase. However again, the more I look at things, the more I see a very prolonged stagnant market rather then a market that depreciates fast and loses significant value in a relatively short timeframe.

[SD Realtor]

Conveniently omitted is that it now can take up to 300 days to foreclose, that the GSEs are also rewarding every step any lender takes to rewrite loans or sell short rather then foreclose, and oh yeah let’s see who the new president is next year.

Does anyone think that guys like Schumer and Dodd are through trying to socialize our housing and rescue the lenders?

I am not trying to downplay the significance of the second wave because I have pretty much shot all my bullets and used every excuse for putting off my own purchase. However again, the more I look at things, the more I see a very prolonged stagnant market rather then a market that depreciates fast and loses significant value in a relatively short timeframe.

[LA_Renter]

“However again, the more I look at things, the more I see a very prolonged stagnant market rather then a market that depreciates fast and loses significant value in a relatively short timeframe.”

If we are to see steep declines in the desirable areas that would be starting right about now IMO. I don’t think they can totally bail this thing out, also as pointed out these Option Arms are heavily weighted to the high cost coastal areas especially CA. A huge bailout of these loans may not be very popular with the rest of the country. Who knows. I think the economy is worse than being reported. I only say that from anecdotal evidence from my work. I am in a sales management capacity with a very large mult-billion dollar corp. Our division gets an editorial every month on our percentage to plan. Nationwide July was the worst performance as a percentage of plan since they have been keeping records. This is business to business sales of a commodity like must have product being sold into basically every sector of the economy. The downturn became more acute in the last 6 weeks. Needless to say it is not exactly pleasant right now. My gut tells me we haven’t seen the full extent of the carnage here. I think the next 6 to 12 months will give the verdict. Just my two cents.

[LA_Renter]

“However again, the more I look at things, the more I see a very prolonged stagnant market rather then a market that depreciates fast and loses significant value in a relatively short timeframe.”

If we are to see steep declines in the desirable areas that would be starting right about now IMO. I don’t think they can totally bail this thing out, also as pointed out these Option Arms are heavily weighted to the high cost coastal areas especially CA. A huge bailout of these loans may not be very popular with the rest of the country. Who knows. I think the economy is worse than being reported. I only say that from anecdotal evidence from my work. I am in a sales management capacity with a very large mult-billion dollar corp. Our division gets an editorial every month on our percentage to plan. Nationwide July was the worst performance as a percentage of plan since they have been keeping records. This is business to business sales of a commodity like must have product being sold into basically every sector of the economy. The downturn became more acute in the last 6 weeks. Needless to say it is not exactly pleasant right now. My gut tells me we haven’t seen the full extent of the carnage here. I think the next 6 to 12 months will give the verdict. Just my two cents.

[LA_Renter]

“However again, the more I look at things, the more I see a very prolonged stagnant market rather then a market that depreciates fast and loses significant value in a relatively short timeframe.”

If we are to see steep declines in the desirable areas that would be starting right about now IMO. I don’t think they can totally bail this thing out, also as pointed out these Option Arms are heavily weighted to the high cost coastal areas especially CA. A huge bailout of these loans may not be very popular with the rest of the country. Who knows. I think the economy is worse than being reported. I only say that from anecdotal evidence from my work. I am in a sales management capacity with a very large mult-billion dollar corp. Our division gets an editorial every month on our percentage to plan. Nationwide July was the worst performance as a percentage of plan since they have been keeping records. This is business to business sales of a commodity like must have product being sold into basically every sector of the economy. The downturn became more acute in the last 6 weeks. Needless to say it is not exactly pleasant right now. My gut tells me we haven’t seen the full extent of the carnage here. I think the next 6 to 12 months will give the verdict. Just my two cents.

[LA_Renter]

“However again, the more I look at things, the more I see a very prolonged stagnant market rather then a market that depreciates fast and loses significant value in a relatively short timeframe.”

If we are to see steep declines in the desirable areas that would be starting right about now IMO. I don’t think they can totally bail this thing out, also as pointed out these Option Arms are heavily weighted to the high cost coastal areas especially CA. A huge bailout of these loans may not be very popular with the rest of the country. Who knows. I think the economy is worse than being reported. I only say that from anecdotal evidence from my work. I am in a sales management capacity with a very large mult-billion dollar corp. Our division gets an editorial every month on our percentage to plan. Nationwide July was the worst performance as a percentage of plan since they have been keeping records. This is business to business sales of a commodity like must have product being sold into basically every sector of the economy. The downturn became more acute in the last 6 weeks. Needless to say it is not exactly pleasant right now. My gut tells me we haven’t seen the full extent of the carnage here. I think the next 6 to 12 months will give the verdict. Just my two cents.

[LA_Renter]

“However again, the more I look at things, the more I see a very prolonged stagnant market rather then a market that depreciates fast and loses significant value in a relatively short timeframe.”

If we are to see steep declines in the desirable areas that would be starting right about now IMO. I don’t think they can totally bail this thing out, also as pointed out these Option Arms are heavily weighted to the high cost coastal areas especially CA. A huge bailout of these loans may not be very popular with the rest of the country. Who knows. I think the economy is worse than being reported. I only say that from anecdotal evidence from my work. I am in a sales management capacity with a very large mult-billion dollar corp. Our division gets an editorial every month on our percentage to plan. Nationwide July was the worst performance as a percentage of plan since they have been keeping records. This is business to business sales of a commodity like must have product being sold into basically every sector of the economy. The downturn became more acute in the last 6 weeks. Needless to say it is not exactly pleasant right now. My gut tells me we haven’t seen the full extent of the carnage here. I think the next 6 to 12 months will give the verdict. Just my two cents.

[peterb]

This is shaping up to be the worst economic melt down since the 1930’s. Deflation is just cranking up to speed. Throw in increasing unemployment and we’ve got a long way yet to fall. I’ve never seen anything near to this in my life time and the bad news just keeps rolling in. This article does not address how many people may walk away from their mortgage simply because they are way underwater. Regardless of their ability to pay.
All I can say to someone who’s chomping at the bit to buy a house right now is,”I hope you really want the house and dont care that it will drop in value for at least another 2 years.” How will you feel when the place you bought for $650K in 2008 is worth $450K in 2010?

[peterb]

This is shaping up to be the worst economic melt down since the 1930’s. Deflation is just cranking up to speed. Throw in increasing unemployment and we’ve got a long way yet to fall. I’ve never seen anything near to this in my life time and the bad news just keeps rolling in. This article does not address how many people may walk away from their mortgage simply because they are way underwater. Regardless of their ability to pay.
All I can say to someone who’s chomping at the bit to buy a house right now is,”I hope you really want the house and dont care that it will drop in value for at least another 2 years.” How will you feel when the place you bought for $650K in 2008 is worth $450K in 2010?

[peterb]

This is shaping up to be the worst economic melt down since the 1930’s. Deflation is just cranking up to speed. Throw in increasing unemployment and we’ve got a long way yet to fall. I’ve never seen anything near to this in my life time and the bad news just keeps rolling in. This article does not address how many people may walk away from their mortgage simply because they are way underwater. Regardless of their ability to pay.
All I can say to someone who’s chomping at the bit to buy a house right now is,”I hope you really want the house and dont care that it will drop in value for at least another 2 years.” How will you feel when the place you bought for $650K in 2008 is worth $450K in 2010?

[peterb]

This is shaping up to be the worst economic melt down since the 1930’s. Deflation is just cranking up to speed. Throw in increasing unemployment and we’ve got a long way yet to fall. I’ve never seen anything near to this in my life time and the bad news just keeps rolling in. This article does not address how many people may walk away from their mortgage simply because they are way underwater. Regardless of their ability to pay.
All I can say to someone who’s chomping at the bit to buy a house right now is,”I hope you really want the house and dont care that it will drop in value for at least another 2 years.” How will you feel when the place you bought for $650K in 2008 is worth $450K in 2010?

[Author]

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