Mortgage modifications fail to stop defaults

[(former)FormerSanDiegan]

[quote=peterb]Takes a job to get a loan, to buy the house. And herein lies the problem for the future.

Loan mods need to have cramdowns, otherwise they’re not attractive alternatives to letting the property go back to the lender.

Yes, Japan managed to spread the problem over many years. Price corrections will not be denied by the market.[/quote]

Japan did not respond by turning on the printing presses in the same way the US has. As you point out the market will not be denied. One important aspect of that market is the supply of money.

Look at the chart in the link below.

http://www.pcasd.com/us_not_going_down_japans_road

[sd_matt]

Random question

Do short sales affect comps? Do they show up on sites like zillow?

[sd_matt]

Random question

Do short sales affect comps? Do they show up on sites like zillow?

[sd_matt]

Random question

Do short sales affect comps? Do they show up on sites like zillow?

[sd_matt]

Random question

Do short sales affect comps? Do they show up on sites like zillow?

[sd_matt]

Random question

Do short sales affect comps? Do they show up on sites like zillow?

[peterb]

The credit markets have to take the cheap money into the economy. And they’re doing just the opposite. The credit markets are constricting and the rates on treasuries are increasing. Unemployment is soaring. How anyone gets inflation out of this scenario is beyond me.

There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.

[peterb]

The credit markets have to take the cheap money into the economy. And they’re doing just the opposite. The credit markets are constricting and the rates on treasuries are increasing. Unemployment is soaring. How anyone gets inflation out of this scenario is beyond me.

There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.

[peterb]

The credit markets have to take the cheap money into the economy. And they’re doing just the opposite. The credit markets are constricting and the rates on treasuries are increasing. Unemployment is soaring. How anyone gets inflation out of this scenario is beyond me.

There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.

[peterb]

The credit markets have to take the cheap money into the economy. And they’re doing just the opposite. The credit markets are constricting and the rates on treasuries are increasing. Unemployment is soaring. How anyone gets inflation out of this scenario is beyond me.

There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.

[peterb]

The credit markets have to take the cheap money into the economy. And they’re doing just the opposite. The credit markets are constricting and the rates on treasuries are increasing. Unemployment is soaring. How anyone gets inflation out of this scenario is beyond me.

There’s no velocity to the money out there. It’s not making its way into the economy. It’s theoretical. Since the money is digital, it is always immediately available to the financial markets at the given rates. The effect takes place if they actually make use of it by extending credit out in the markets.

[DWCAP]

population growth also only helps spur housing demand if density per household is holding or falling. If density is increasing, then it doesnt necessarly have to lead to more demand.

I dont know if that is happening now on a macro level or not, but one of the most often cited reasons for the falling rents we are seeing now is that people are grouping up to save. Kids move in with mom and dad, get a roommate, move into minidorm style living, people let out rooms, convert the garage etc. etc. hell people arent even getting divorced like they use to, all leading to atleast a temporary reduction in housing demand that I see no reason couldnt last for 1-2 years at a minimum. (rent contracts are for a year…)

Cutting your housing expenses by 20%+ can really make a difference in the monthly budget, alot more than not buying coffee at starbucks (unless you are some kinda junky:) ) so it just kinda makes sense.

[DWCAP]

population growth also only helps spur housing demand if density per household is holding or falling. If density is increasing, then it doesnt necessarly have to lead to more demand.

I dont know if that is happening now on a macro level or not, but one of the most often cited reasons for the falling rents we are seeing now is that people are grouping up to save. Kids move in with mom and dad, get a roommate, move into minidorm style living, people let out rooms, convert the garage etc. etc. hell people arent even getting divorced like they use to, all leading to atleast a temporary reduction in housing demand that I see no reason couldnt last for 1-2 years at a minimum. (rent contracts are for a year…)

Cutting your housing expenses by 20%+ can really make a difference in the monthly budget, alot more than not buying coffee at starbucks (unless you are some kinda junky:) ) so it just kinda makes sense.

[DWCAP]

population growth also only helps spur housing demand if density per household is holding or falling. If density is increasing, then it doesnt necessarly have to lead to more demand.

I dont know if that is happening now on a macro level or not, but one of the most often cited reasons for the falling rents we are seeing now is that people are grouping up to save. Kids move in with mom and dad, get a roommate, move into minidorm style living, people let out rooms, convert the garage etc. etc. hell people arent even getting divorced like they use to, all leading to atleast a temporary reduction in housing demand that I see no reason couldnt last for 1-2 years at a minimum. (rent contracts are for a year…)

Cutting your housing expenses by 20%+ can really make a difference in the monthly budget, alot more than not buying coffee at starbucks (unless you are some kinda junky:) ) so it just kinda makes sense.

[DWCAP]

population growth also only helps spur housing demand if density per household is holding or falling. If density is increasing, then it doesnt necessarly have to lead to more demand.

I dont know if that is happening now on a macro level or not, but one of the most often cited reasons for the falling rents we are seeing now is that people are grouping up to save. Kids move in with mom and dad, get a roommate, move into minidorm style living, people let out rooms, convert the garage etc. etc. hell people arent even getting divorced like they use to, all leading to atleast a temporary reduction in housing demand that I see no reason couldnt last for 1-2 years at a minimum. (rent contracts are for a year…)

Cutting your housing expenses by 20%+ can really make a difference in the monthly budget, alot more than not buying coffee at starbucks (unless you are some kinda junky:) ) so it just kinda makes sense.

[Author]

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