[little lady]

This Guy is just trying to provoke an arguement, ignore it it will go away …but in the meanwhile….put this in your pipe and smoke it………… FROM BANKRATE!!!!!

 

 Formula for foreclosure: resets, no equity By Holden Lewis • Bankrate.com

 

More than 1.1 million homeowners will lose their homes to foreclosure by 2014 because they can't afford the rising payments on their adjustable-rate mortgages, according to a researcher. Whether you think that's a big deal depends on your perspective. "This is not going to break the economy. It's better understood as a part of the business cycle," says Chris Cagan, the mathematician who wrote the foreclosure forecast. That's the big-picture, or macroeconomic, view. The up-close, or microeconomic, perspective is more ominous: "The trouble is that it doesn't affect everybody equally," Cagan says. "Its impact will tend to fall on the subset of borrowers, lenders and investors who are most exposed." $100 billion in foreclosures? In other words, the biggest losers will be the homeowners who lose their houses and the lenders and investors who fronted them the money. Cagan, a researcher for First American CoreLogic, says the net losses from these foreclosures will total about $100 billion over the next six or seven years. Depending on whether house prices go up or down in the meantime, the financial impact could be lighter or heavier than that, he says. Cagan says the problem stems from "the double whammy of reset and no equity." There's a lot of meaning stuffed into that sentence. Let's unpack it: Reset refers to the rising rate on an adjustable-rate mortgage, or ARM. In most cases, the introductory rate on an ARM can rise a maximum of 6 percentage points. That means that someone who gets an ARM with a starting rate of 6 percent could end up with a rate of 12 percent someday. No equity refers to the squeeze that borrowers find themselves in when they owe more than the house is worth (being "upside-down" on the house). Cagan expects this to happen to millions of homeowners. When they owe more than the house is worth, but can no longer afford the payments after ARM reset, they won't be able to refinance. The most likely outcome is foreclosure. When Cagan makes his prediction of 1.1 million foreclosures over the next six or seven years, he's talking only about people caught in the vise between rising ARM rates and declining home equity. These reset-related foreclosures will be in addition to millions of foreclosures resulting from the usual reasons: job loss, divorce, death, illness and fraud. Home values dropping People become upside-down on their houses in two ways: The house loses value, or the loan balance rises, or both.

[little lady]

Well of course it doesn’t, it didn’t in the last downturn……….

[little lady]

“Despite the drop, David Cabot, president of the San Diego Association of Realtors, saw positive growth in the report.”

He needs new googles………

[little lady]

schizo2buyORnot

You go ahead, “keep hope alive”! There is no getting around it. We are headed for a steeper decline in housing prices. For some reason or another you fail to believe it. I myself felt very unsure until recently. I put my house on the market in February, it sold in 45 days. However, already down 15% from peak price. I felt like maybe this isn’t the end, but it infact is THE BEGGINING of the end.

I bought my house in last downturn, because I heard it was a good time to buy. The writing is on the wall, EVERYONE is writing and talking about it, just about every news entity is talking about the housing slump. Houses sit empty, foreclosures are up. You try hard to look for random articles that claim a silverlining. When the consensus is that the housing market is tanking.

You should check out this website.

http://housebubble.com/

It contains articles on both ends of the spectrum, although lately they have been comepletely onesided….because the market is declining.

[little lady]

foreclosures up 47% nationwide….

http://realestate.msn.com/Buying/Article2.aspx?cp-documentid=4734564

[little lady]

It is NOT the same as last time. No two downturns are identical, though they are cyclical.

It makes no difference how you slice it, we ARE in a downturn. What remains to be seen is how far and fast it will go.

[little lady]

Check this out on PBS…….
http://www.pbs.org/now/thisweek/index_082605.html

http://www.pbs.org/now/shows/317/index.html

[little lady]

“Countrywide profit falls 37 pct, forecast cut”

http://www.reuters.com/article/marketsNews/idUSN2638007220070426?pageNumber=1

Companies are changing their forecasts! More fuel to the fire!

Here’s more………..

http://www.bloomberg.com/apps/news?pid=20601087&sid=asMQaYiAoWtI&refer=home

[little lady]

Sale of my house will close on May 10th, if everything goes right….ttfn

[little lady]

You can’t bail out if there is no one who is there to bail to …..driving prices down.

[little lady]

I say use the money to help bail out SOCIAL SECURITY!!!!

[little lady]

“Such a tragic tale. Immigrant Farmer making $15,000 get’s $720,000 loan and can’t afford it”

That’s what I am talkin”bout, there is NO WAY to refinance to get this guy to be able to pay unless he’s got like a ’90 year loan!

[little lady]

“Who will qualify for a bail out?
Do you even need a job to qualify?
How does one apply for a bail out?”

THAT is what I am saying NOT everyone will qualify. My brother bought 2 houses(owns 3)during the last 2 years. I don’t know if he has the kind of “variable interest/teaser” loans, though I don’t think so. He is going to be upside down in the one he lives in, and the one he is selling that he just bought prior. I doubt he will sell it(but that’s another story). HOW could someone who bought more than 1 home in this market be afforded that luxury. NO WAY! Many people that will be facing foreclosure bought to FLIP! They can’t be saved! Look out for “The Fall of ’08”.

[little lady]

“Subprime resets to peak through April 2008”

That was in the oc register today….

Here’s the link,

http://www.ocregister.com/ocregister/money/subprime/article_1647893.php

FALL of ’08 baby!

[little lady]

I am already seeing prices listed like back in ’03 on some foreclosure property, in my area. It makes me wanna jump back in!

[Author]

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