Mortgage Defaults May Be Driving Consumer Spending

[Arraya]

http://www.cnbc.com/id/36422316
More than 1.1 million loans that were current at the beginning of January 2010 were already at least 30 days delinquent or in foreclosure by February 2010 month-end.

snip

Okay, so 7.9 million Americans are not paying their mortgages.

Are we really thinking about the implications of that?

snip

It currently takes well over a year, in some cases nearly two years, to go from missing a payment to being chucked out of your home.

That’s a lot of time to go shopping.

[meadandale]

We all know that these people aren’t smart enough to be banking their mortgage payments in lieu of making the payments so I’d say that this assessment is pretty much spot on.

I think that we are in the eye of the storm. There’s a big front coming. Consider that home values are storming upwards again in San Diego with absolutely nothing to support them. Once rates rise (as they must) this will come to an end. And it’s going to be a long time until the economy truly recovers. We aren’t even close–I think that it’s going to get alot worse before it gets better, especially considering the dire state of US debt and our huge deficit spending binge.

[meadandale]

We all know that these people aren’t smart enough to be banking their mortgage payments in lieu of making the payments so I’d say that this assessment is pretty much spot on.

I think that we are in the eye of the storm. There’s a big front coming. Consider that home values are storming upwards again in San Diego with absolutely nothing to support them. Once rates rise (as they must) this will come to an end. And it’s going to be a long time until the economy truly recovers. We aren’t even close–I think that it’s going to get alot worse before it gets better, especially considering the dire state of US debt and our huge deficit spending binge.

[meadandale]

We all know that these people aren’t smart enough to be banking their mortgage payments in lieu of making the payments so I’d say that this assessment is pretty much spot on.

I think that we are in the eye of the storm. There’s a big front coming. Consider that home values are storming upwards again in San Diego with absolutely nothing to support them. Once rates rise (as they must) this will come to an end. And it’s going to be a long time until the economy truly recovers. We aren’t even close–I think that it’s going to get alot worse before it gets better, especially considering the dire state of US debt and our huge deficit spending binge.

[meadandale]

We all know that these people aren’t smart enough to be banking their mortgage payments in lieu of making the payments so I’d say that this assessment is pretty much spot on.

I think that we are in the eye of the storm. There’s a big front coming. Consider that home values are storming upwards again in San Diego with absolutely nothing to support them. Once rates rise (as they must) this will come to an end. And it’s going to be a long time until the economy truly recovers. We aren’t even close–I think that it’s going to get alot worse before it gets better, especially considering the dire state of US debt and our huge deficit spending binge.

[meadandale]

We all know that these people aren’t smart enough to be banking their mortgage payments in lieu of making the payments so I’d say that this assessment is pretty much spot on.

I think that we are in the eye of the storm. There’s a big front coming. Consider that home values are storming upwards again in San Diego with absolutely nothing to support them. Once rates rise (as they must) this will come to an end. And it’s going to be a long time until the economy truly recovers. We aren’t even close–I think that it’s going to get alot worse before it gets better, especially considering the dire state of US debt and our huge deficit spending binge.

[jpinpb]

I’ve been saying that people not paying their mortgage have spendable income. I see it as indirect collateral damage. Whether intentional or not, people’s biggest expense are housing and transportation. If one doesn’t pay their mortgage, that’s a heck of a lot of new clothes and dinners out. Maybe even a new car. Travel is another one.

People generally have not been savers. Certainly interest rates aren’t encouraging it. People in this country consume and spending is what I see most people doing w/their new found income. I heard something like 75% of our economy is from consumer spending.

Not foreclosing on people has helped our economy, at least temporarily. In the end, we will eventually have to reckon w/this.

I guess it’s just another, innovative way of using your home as your ATM.

Says it all.

[jpinpb]

I’ve been saying that people not paying their mortgage have spendable income. I see it as indirect collateral damage. Whether intentional or not, people’s biggest expense are housing and transportation. If one doesn’t pay their mortgage, that’s a heck of a lot of new clothes and dinners out. Maybe even a new car. Travel is another one.

People generally have not been savers. Certainly interest rates aren’t encouraging it. People in this country consume and spending is what I see most people doing w/their new found income. I heard something like 75% of our economy is from consumer spending.

Not foreclosing on people has helped our economy, at least temporarily. In the end, we will eventually have to reckon w/this.

I guess it’s just another, innovative way of using your home as your ATM.

Says it all.

[jpinpb]

I’ve been saying that people not paying their mortgage have spendable income. I see it as indirect collateral damage. Whether intentional or not, people’s biggest expense are housing and transportation. If one doesn’t pay their mortgage, that’s a heck of a lot of new clothes and dinners out. Maybe even a new car. Travel is another one.

People generally have not been savers. Certainly interest rates aren’t encouraging it. People in this country consume and spending is what I see most people doing w/their new found income. I heard something like 75% of our economy is from consumer spending.

Not foreclosing on people has helped our economy, at least temporarily. In the end, we will eventually have to reckon w/this.

I guess it’s just another, innovative way of using your home as your ATM.

Says it all.

[jpinpb]

I’ve been saying that people not paying their mortgage have spendable income. I see it as indirect collateral damage. Whether intentional or not, people’s biggest expense are housing and transportation. If one doesn’t pay their mortgage, that’s a heck of a lot of new clothes and dinners out. Maybe even a new car. Travel is another one.

People generally have not been savers. Certainly interest rates aren’t encouraging it. People in this country consume and spending is what I see most people doing w/their new found income. I heard something like 75% of our economy is from consumer spending.

Not foreclosing on people has helped our economy, at least temporarily. In the end, we will eventually have to reckon w/this.

I guess it’s just another, innovative way of using your home as your ATM.

Says it all.

[jpinpb]

I’ve been saying that people not paying their mortgage have spendable income. I see it as indirect collateral damage. Whether intentional or not, people’s biggest expense are housing and transportation. If one doesn’t pay their mortgage, that’s a heck of a lot of new clothes and dinners out. Maybe even a new car. Travel is another one.

People generally have not been savers. Certainly interest rates aren’t encouraging it. People in this country consume and spending is what I see most people doing w/their new found income. I heard something like 75% of our economy is from consumer spending.

Not foreclosing on people has helped our economy, at least temporarily. In the end, we will eventually have to reckon w/this.

I guess it’s just another, innovative way of using your home as your ATM.

Says it all.

[creechrr]

I concur with above statements and know a few people that are living that very reality. They haven’t made a mortgage payment in months, some by choice.

As time passes without any repurcussions they grow increasing comfortable with the situation.

– New Car…Yup
– Travel…Yup
– shopping…Yup

Not much saving if at all.

The one odd commonality of the group in question, is the belief that the general health of the economy is improving and that local housing prices will be approaching the heights momentarily.

A complete disregard for reality. When presented with facts they’ll even tend to agree with all points however there is always a, “yeah but” response usually along the lines of California being special or some other delusion.

I don’t know what the term is but, is goes beyond denial. It’s some sort of mania. I’m sure there will be term coined to describe it in the history books.

[creechrr]

I concur with above statements and know a few people that are living that very reality. They haven’t made a mortgage payment in months, some by choice.

As time passes without any repurcussions they grow increasing comfortable with the situation.

– New Car…Yup
– Travel…Yup
– shopping…Yup

Not much saving if at all.

The one odd commonality of the group in question, is the belief that the general health of the economy is improving and that local housing prices will be approaching the heights momentarily.

A complete disregard for reality. When presented with facts they’ll even tend to agree with all points however there is always a, “yeah but” response usually along the lines of California being special or some other delusion.

I don’t know what the term is but, is goes beyond denial. It’s some sort of mania. I’m sure there will be term coined to describe it in the history books.

[creechrr]

I concur with above statements and know a few people that are living that very reality. They haven’t made a mortgage payment in months, some by choice.

As time passes without any repurcussions they grow increasing comfortable with the situation.

– New Car…Yup
– Travel…Yup
– shopping…Yup

Not much saving if at all.

The one odd commonality of the group in question, is the belief that the general health of the economy is improving and that local housing prices will be approaching the heights momentarily.

A complete disregard for reality. When presented with facts they’ll even tend to agree with all points however there is always a, “yeah but” response usually along the lines of California being special or some other delusion.

I don’t know what the term is but, is goes beyond denial. It’s some sort of mania. I’m sure there will be term coined to describe it in the history books.

[creechrr]

I concur with above statements and know a few people that are living that very reality. They haven’t made a mortgage payment in months, some by choice.

As time passes without any repurcussions they grow increasing comfortable with the situation.

– New Car…Yup
– Travel…Yup
– shopping…Yup

Not much saving if at all.

The one odd commonality of the group in question, is the belief that the general health of the economy is improving and that local housing prices will be approaching the heights momentarily.

A complete disregard for reality. When presented with facts they’ll even tend to agree with all points however there is always a, “yeah but” response usually along the lines of California being special or some other delusion.

I don’t know what the term is but, is goes beyond denial. It’s some sort of mania. I’m sure there will be term coined to describe it in the history books.

[Author]

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