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CAwireman
ParticipantSeem to be a number of similar articles like this popping up:
Foreclosures are no longer a primarily subprime problem. While in 2006 about 55 percent of foreclosures came on subprime loans, in 2009 subprimes represent just 35 percent of foreclosures, another 35 percent are in the middle tier and 30 percent are in the top tier. The primary contributing factor is higher delinquency rates in Prime, Alt-A and Option ARM mortgage products.
According to the Amherst Security Group, this problem won’t go away any time soon, because:
• Loans are transitioning into delinquency/foreclosure at a rapid pace, but moving out at a slow pace;
• Cure rates are low. In other words, fewer people are paying their past-due amounts and getting back on track.
• Loans are taking longer to liquidate. In other words, the length of time between the start of the foreclosure process and the point when the lender gets control of the property is growing.
http://www.dailydemocrat.com/news/ci_13532775
“Housing in California has become a tale of two markets,” Association President James Liptak said in a written statement. “The low end continues to attract first-time buyers and investors, with a resulting shortage in the number of homes for sale. Sellers at the high end, however, continue to be challenged by the ability of home buyers to secure financing as well as their
concerns about where prices are headed.”
There is also another reason why high-end homes are not selling. Move-up buyers have seen their home values fall and are unable to sell their homes at the price level needed to help finance the purchase of a more expensive home, said Mark Hanson, head of Menlo Park-based Field Check Group, an independent real estate research firm.“Our move-up buyer is long gone in California. In the mid- to high-end market … people can’t sell their property,” he said.
“In the low-end market, sales are going to drop,”
_________________________Heard as much on the radio today while driving into work. High end jobs being lost along with those at the mid and low end.
Will continue to keep a close eye on this…..
ParticipantSeem to be a number of similar articles like this popping up:
Foreclosures are no longer a primarily subprime problem. While in 2006 about 55 percent of foreclosures came on subprime loans, in 2009 subprimes represent just 35 percent of foreclosures, another 35 percent are in the middle tier and 30 percent are in the top tier. The primary contributing factor is higher delinquency rates in Prime, Alt-A and Option ARM mortgage products.
According to the Amherst Security Group, this problem won’t go away any time soon, because:
• Loans are transitioning into delinquency/foreclosure at a rapid pace, but moving out at a slow pace;
• Cure rates are low. In other words, fewer people are paying their past-due amounts and getting back on track.
• Loans are taking longer to liquidate. In other words, the length of time between the start of the foreclosure process and the point when the lender gets control of the property is growing.
http://www.dailydemocrat.com/news/ci_13532775
“Housing in California has become a tale of two markets,” Association President James Liptak said in a written statement. “The low end continues to attract first-time buyers and investors, with a resulting shortage in the number of homes for sale. Sellers at the high end, however, continue to be challenged by the ability of home buyers to secure financing as well as their
concerns about where prices are headed.”
There is also another reason why high-end homes are not selling. Move-up buyers have seen their home values fall and are unable to sell their homes at the price level needed to help finance the purchase of a more expensive home, said Mark Hanson, head of Menlo Park-based Field Check Group, an independent real estate research firm.“Our move-up buyer is long gone in California. In the mid- to high-end market … people can’t sell their property,” he said.
“In the low-end market, sales are going to drop,”
_________________________Heard as much on the radio today while driving into work. High end jobs being lost along with those at the mid and low end.
Will continue to keep a close eye on this…..
ParticipantSeem to be a number of similar articles like this popping up:
Foreclosures are no longer a primarily subprime problem. While in 2006 about 55 percent of foreclosures came on subprime loans, in 2009 subprimes represent just 35 percent of foreclosures, another 35 percent are in the middle tier and 30 percent are in the top tier. The primary contributing factor is higher delinquency rates in Prime, Alt-A and Option ARM mortgage products.
According to the Amherst Security Group, this problem won’t go away any time soon, because:
• Loans are transitioning into delinquency/foreclosure at a rapid pace, but moving out at a slow pace;
• Cure rates are low. In other words, fewer people are paying their past-due amounts and getting back on track.
• Loans are taking longer to liquidate. In other words, the length of time between the start of the foreclosure process and the point when the lender gets control of the property is growing.
http://www.dailydemocrat.com/news/ci_13532775
“Housing in California has become a tale of two markets,” Association President James Liptak said in a written statement. “The low end continues to attract first-time buyers and investors, with a resulting shortage in the number of homes for sale. Sellers at the high end, however, continue to be challenged by the ability of home buyers to secure financing as well as their
concerns about where prices are headed.”
There is also another reason why high-end homes are not selling. Move-up buyers have seen their home values fall and are unable to sell their homes at the price level needed to help finance the purchase of a more expensive home, said Mark Hanson, head of Menlo Park-based Field Check Group, an independent real estate research firm.“Our move-up buyer is long gone in California. In the mid- to high-end market … people can’t sell their property,” he said.
“In the low-end market, sales are going to drop,”
_________________________Heard as much on the radio today while driving into work. High end jobs being lost along with those at the mid and low end.
Will continue to keep a close eye on this…..
ParticipantBanks wanting all one’s cards on the table during a loan mod is not far off from what short sales typically look like.
As I understand the short sale, you have to show that you really can’t afford keep the house or make it right with any savings or assetts you might have.
It boils down to this, if the borrower wants the house, and the loan mod officer says the 401K must be on the table, or you’ll lose your property, then the borrower either puts it on the table, or loses the property.
I don’t know any of the legal side of it, but you’d think that the banking industry would, by now, have cleaned up their act and that if they are asking for 401K money as a backstop, then they are probably on solid ground.
Simple way to validate this would be to research it with other banks.
On another note, a friend of mine who has been tracking the economy closely for a while, thought that Obama might do well to allow people to more easily tap 401K funds (with little or no penalty) to save a home. Cannot corps raid the employees retirement fund if falling on hard times? Maybe the US should allow citizens to do the same as a financial life line……
ParticipantBanks wanting all one’s cards on the table during a loan mod is not far off from what short sales typically look like.
As I understand the short sale, you have to show that you really can’t afford keep the house or make it right with any savings or assetts you might have.
It boils down to this, if the borrower wants the house, and the loan mod officer says the 401K must be on the table, or you’ll lose your property, then the borrower either puts it on the table, or loses the property.
I don’t know any of the legal side of it, but you’d think that the banking industry would, by now, have cleaned up their act and that if they are asking for 401K money as a backstop, then they are probably on solid ground.
Simple way to validate this would be to research it with other banks.
On another note, a friend of mine who has been tracking the economy closely for a while, thought that Obama might do well to allow people to more easily tap 401K funds (with little or no penalty) to save a home. Cannot corps raid the employees retirement fund if falling on hard times? Maybe the US should allow citizens to do the same as a financial life line……
ParticipantBanks wanting all one’s cards on the table during a loan mod is not far off from what short sales typically look like.
As I understand the short sale, you have to show that you really can’t afford keep the house or make it right with any savings or assetts you might have.
It boils down to this, if the borrower wants the house, and the loan mod officer says the 401K must be on the table, or you’ll lose your property, then the borrower either puts it on the table, or loses the property.
I don’t know any of the legal side of it, but you’d think that the banking industry would, by now, have cleaned up their act and that if they are asking for 401K money as a backstop, then they are probably on solid ground.
Simple way to validate this would be to research it with other banks.
On another note, a friend of mine who has been tracking the economy closely for a while, thought that Obama might do well to allow people to more easily tap 401K funds (with little or no penalty) to save a home. Cannot corps raid the employees retirement fund if falling on hard times? Maybe the US should allow citizens to do the same as a financial life line……
ParticipantBanks wanting all one’s cards on the table during a loan mod is not far off from what short sales typically look like.
As I understand the short sale, you have to show that you really can’t afford keep the house or make it right with any savings or assetts you might have.
It boils down to this, if the borrower wants the house, and the loan mod officer says the 401K must be on the table, or you’ll lose your property, then the borrower either puts it on the table, or loses the property.
I don’t know any of the legal side of it, but you’d think that the banking industry would, by now, have cleaned up their act and that if they are asking for 401K money as a backstop, then they are probably on solid ground.
Simple way to validate this would be to research it with other banks.
On another note, a friend of mine who has been tracking the economy closely for a while, thought that Obama might do well to allow people to more easily tap 401K funds (with little or no penalty) to save a home. Cannot corps raid the employees retirement fund if falling on hard times? Maybe the US should allow citizens to do the same as a financial life line……
ParticipantBanks wanting all one’s cards on the table during a loan mod is not far off from what short sales typically look like.
As I understand the short sale, you have to show that you really can’t afford keep the house or make it right with any savings or assetts you might have.
It boils down to this, if the borrower wants the house, and the loan mod officer says the 401K must be on the table, or you’ll lose your property, then the borrower either puts it on the table, or loses the property.
I don’t know any of the legal side of it, but you’d think that the banking industry would, by now, have cleaned up their act and that if they are asking for 401K money as a backstop, then they are probably on solid ground.
Simple way to validate this would be to research it with other banks.
On another note, a friend of mine who has been tracking the economy closely for a while, thought that Obama might do well to allow people to more easily tap 401K funds (with little or no penalty) to save a home. Cannot corps raid the employees retirement fund if falling on hard times? Maybe the US should allow citizens to do the same as a financial life line……
June 14, 2009 at 8:07 PM in reply to: OT: Is Swine Flu Pandemic Warning exaggerated? And who’s really at risk? #415643ParticipantParamount, you may have stumbled onto it. Money.
Company comes up with a vacine and needs help to “Sell” it.
I think WHO is going to be doing some backpeddling if this thing doesn’t materalize…..
June 14, 2009 at 8:07 PM in reply to: OT: Is Swine Flu Pandemic Warning exaggerated? And who’s really at risk? #415881ParticipantParamount, you may have stumbled onto it. Money.
Company comes up with a vacine and needs help to “Sell” it.
I think WHO is going to be doing some backpeddling if this thing doesn’t materalize…..
June 14, 2009 at 8:07 PM in reply to: OT: Is Swine Flu Pandemic Warning exaggerated? And who’s really at risk? #416138ParticipantParamount, you may have stumbled onto it. Money.
Company comes up with a vacine and needs help to “Sell” it.
I think WHO is going to be doing some backpeddling if this thing doesn’t materalize…..
June 14, 2009 at 8:07 PM in reply to: OT: Is Swine Flu Pandemic Warning exaggerated? And who’s really at risk? #416206ParticipantParamount, you may have stumbled onto it. Money.
Company comes up with a vacine and needs help to “Sell” it.
I think WHO is going to be doing some backpeddling if this thing doesn’t materalize…..
June 14, 2009 at 8:07 PM in reply to: OT: Is Swine Flu Pandemic Warning exaggerated? And who’s really at risk? #416364ParticipantParamount, you may have stumbled onto it. Money.
Company comes up with a vacine and needs help to “Sell” it.
I think WHO is going to be doing some backpeddling if this thing doesn’t materalize…..
ParticipantDan The Dart,
Awesome post and reference to the Dr. Housing Bubble article.
That one says is all!
Thanks!
===========================
[quote=danthedart]Have you guys read Dr. Housing Bubble’s latest?
A few interesting things from the article:
– The stock market is a bad indicator because its completely disconnected with what is happening in the real world. Remember the stock market has predicted 6 out of the last 0 economic recoveries and 12 out of the last 9 recessions.
– The peak of the alt-a option arm recasts will be in 2011.
– Unemployment was the driving factor in the last 2 housing collapses in California. Unemployment affects housing a lot more than it does the overall economy. [/quote]
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