Forum Replies Created
-
AuthorPosts
-
SD Transplant
ParticipantNeighborhoods Considering: Sorrento Valley, Carmel Valley, Mira Mesa, old Scripps, Rancho Penasquitos, Condo/House: SFR
Price Range: $350-$500K
Size Range: 1800-2500 sq-ft
Currently: RentParticipantNeighborhoods Considering: Sorrento Valley, Carmel Valley, Mira Mesa, old Scripps, Rancho Penasquitos, Condo/House: SFR
Price Range: $350-$500K
Size Range: 1800-2500 sq-ft
Currently: RentParticipantIt seems that the housing market slowdown is taking a toll on other industries – auto industry in this case (which is no surprise). An article on MSN Money today with the title “Repo man is getting busy”
http://articles.moneycentral.msn.com/SavingandDebt/SaveonaCar/TheRepoManIsGettingBusy.aspx
More vehicle owners are falling behind as the economy slows. Many slip when they lack the money to repair cars that they’re still making payments on.
For the repo man, business is always good. But lately, it’s been better than good.As the subprime-mortgage collapse blares in the background, “recovery service agents” have been cleaning up the wreckage of another subprime-lending mess: that of the auto industry, which in its own competitive bid for buyers has been extending longer, costlier loans to people unable to keep up with their payments.
One in three auto-loan borrowers have payments greater than $500 a month, according to consumer credit agency Experian, and 12% have been late at least once
In a survey for the National Automotive Finance Association, BenchMark Consulting International said monthly repossessions by subprime lenders increased 15% last year.Manheim Consulting, which analyzes the used-car market, estimated a 5% increase in the total number of repossessed vehicles to 1.4 million in 2006. The Manheim and Adesa auctions resell most of the vehicles repossessed in the United States.
“The shorthand is that for years we’ve lived beyond our means, reflected in record debt levels, and now comes the paying phase,” said Christian Weller, a senior fellow at the Center for American Progress, a progressive think tank in Washington, D.C. “Car loans have expanded as fast as mortgages, and in terms of the categories of what people borrow for, it is the second-largest.
“It fits the overall picture that all the economic-distress measures are trending upward.”
Repossession agents in areas hit by foreclosures say they’ve been picking up vehicles both from people struggling to keep their homes and from those now left without work: construction workers, pavers, landscapers and real-estate agents.
It is actually stunning the number of cars we’re taking from people who are supporting the local real-estate market,” said J. Patrick Altes, the president of Falcon International, a recovery agency with offices throughout Florida. “It’s almost the type of thing where we see it and you wonder if anyone else sees it. . . . It’s like they turned off the spigot.”
Cracks are showing everywhere:
***BenchMark found a marked rise in long loan terms, which lead to greater negative equity. For subprime lenders, who service consumers with low FICO credit scores at higher interest rates, more than 80% of new-car loans were for 61 to 72 months, up from 67% in 2005.
***Among prime lenders, 61% of new-auto loans were for at least 60 months, with 17% of those exceeding 72 months, nearly double the 9% in 2005. “With longer negative-equity situations, there’s a greater chance the customer’s going to walk away,” said Walter Cunningham, the president of BenchMark.
***For the first time in several years, prime lenders increased the number of loans extended to risky consumers. Those with FICO scores below 600 moved from 4% to 8% for used vehicles and 2% to 6% for new vehicles, BenchMark reported. “They’re moving downscale, and they’re also lending money to the higher-risk players,” Cunningham said.
***Subprime lenders also reached down the credit scale, with 54% of deals made to buyers considered a high or superhigh risk, those with FICO scores under 549, up from 34% in 2005. “All of these are kind of pointing to higher delinquencies and higher charge-offs,” Cunningham said.
***More new cars are being repossessed. According to Manheim, the average mileage of subprime repossessions sold at auction dropped from 80,164 in January 2006 to 75,099 a year later, while the average price rose from $6,359 to $7,066.
Repossession: A unique form of collection
Miss a credit card payment or an electric bill and companies bump down your credit score or cease service. Fail on the mortgage and a judge can issue a foreclosure notice. But skip a car payment or the full insurance and a guy in jeans can hook a chain to your car and tow it away, no court hearing required.“If you think about it, that’s a pretty drastic remedy,” said Nancy Barron, a consumer lawyer in California who specializes in auto claims.
ParticipantIt seems that the housing market slowdown is taking a toll on other industries – auto industry in this case (which is no surprise). An article on MSN Money today with the title “Repo man is getting busy”
http://articles.moneycentral.msn.com/SavingandDebt/SaveonaCar/TheRepoManIsGettingBusy.aspx
More vehicle owners are falling behind as the economy slows. Many slip when they lack the money to repair cars that they’re still making payments on.
For the repo man, business is always good. But lately, it’s been better than good.As the subprime-mortgage collapse blares in the background, “recovery service agents” have been cleaning up the wreckage of another subprime-lending mess: that of the auto industry, which in its own competitive bid for buyers has been extending longer, costlier loans to people unable to keep up with their payments.
One in three auto-loan borrowers have payments greater than $500 a month, according to consumer credit agency Experian, and 12% have been late at least once
In a survey for the National Automotive Finance Association, BenchMark Consulting International said monthly repossessions by subprime lenders increased 15% last year.Manheim Consulting, which analyzes the used-car market, estimated a 5% increase in the total number of repossessed vehicles to 1.4 million in 2006. The Manheim and Adesa auctions resell most of the vehicles repossessed in the United States.
“The shorthand is that for years we’ve lived beyond our means, reflected in record debt levels, and now comes the paying phase,” said Christian Weller, a senior fellow at the Center for American Progress, a progressive think tank in Washington, D.C. “Car loans have expanded as fast as mortgages, and in terms of the categories of what people borrow for, it is the second-largest.
“It fits the overall picture that all the economic-distress measures are trending upward.”
Repossession agents in areas hit by foreclosures say they’ve been picking up vehicles both from people struggling to keep their homes and from those now left without work: construction workers, pavers, landscapers and real-estate agents.
It is actually stunning the number of cars we’re taking from people who are supporting the local real-estate market,” said J. Patrick Altes, the president of Falcon International, a recovery agency with offices throughout Florida. “It’s almost the type of thing where we see it and you wonder if anyone else sees it. . . . It’s like they turned off the spigot.”
Cracks are showing everywhere:
***BenchMark found a marked rise in long loan terms, which lead to greater negative equity. For subprime lenders, who service consumers with low FICO credit scores at higher interest rates, more than 80% of new-car loans were for 61 to 72 months, up from 67% in 2005.
***Among prime lenders, 61% of new-auto loans were for at least 60 months, with 17% of those exceeding 72 months, nearly double the 9% in 2005. “With longer negative-equity situations, there’s a greater chance the customer’s going to walk away,” said Walter Cunningham, the president of BenchMark.
***For the first time in several years, prime lenders increased the number of loans extended to risky consumers. Those with FICO scores below 600 moved from 4% to 8% for used vehicles and 2% to 6% for new vehicles, BenchMark reported. “They’re moving downscale, and they’re also lending money to the higher-risk players,” Cunningham said.
***Subprime lenders also reached down the credit scale, with 54% of deals made to buyers considered a high or superhigh risk, those with FICO scores under 549, up from 34% in 2005. “All of these are kind of pointing to higher delinquencies and higher charge-offs,” Cunningham said.
***More new cars are being repossessed. According to Manheim, the average mileage of subprime repossessions sold at auction dropped from 80,164 in January 2006 to 75,099 a year later, while the average price rose from $6,359 to $7,066.
Repossession: A unique form of collection
Miss a credit card payment or an electric bill and companies bump down your credit score or cease service. Fail on the mortgage and a judge can issue a foreclosure notice. But skip a car payment or the full insurance and a guy in jeans can hook a chain to your car and tow it away, no court hearing required.“If you think about it, that’s a pretty drastic remedy,” said Nancy Barron, a consumer lawyer in California who specializes in auto claims.
ParticipantSD Realtor,
I love your last addition “knowing someone who worked at LinkABit”…… that’s priceless.
I doubt too old scares anyone away, in fact, most of you bring all that experience to the pigginton discussion table. And talking about wheel chairs, I am not in one, but I’ve been in crutches this week – I guess age doesn’t matter sometimes, if your ligaments aren’t cooperating.
ParticipantSD Realtor,
I love your last addition “knowing someone who worked at LinkABit”…… that’s priceless.
I doubt too old scares anyone away, in fact, most of you bring all that experience to the pigginton discussion table. And talking about wheel chairs, I am not in one, but I’ve been in crutches this week – I guess age doesn’t matter sometimes, if your ligaments aren’t cooperating.
ParticipantI’m not a native, but I’ve been living in San Diego since 1995 (about 12 years). I’ve found something fairly amusing today on other blogs (don’t recall which one), so I would like to share what is considered a “true San Diegan”:
You know you’re a true San Diegan if….
1. Your high school had a surf team
2. You know who Biff and Skippy were
3. You can correctly pronounce Tierrasanta, La Jolla , Rancho Penasquitos, San Ysidro, Otay Mesa, Jamacha, Jamul, Cuyamaca, and El Cajon
4. There are four distinct seasons: Summer, Not Quite Summer, Almost Summer, and Oh Hey Look Its Summer Again
5. Your house is worth more than some small countries
6. You know what MB, OB, and PB stand for
7. Every street name is either in Spanish or Spanish related, and you’re surprised when other areas don’t have this
8. You see weather forecasts for four different climate zones in the same county, and aren’t remotely surprised. The Micro Climate Weather
9. You’ve gone to Mt. Helix in July and known you still need a jacket
10. You’ve tailgated at Qualcomm Stadium, and for bonus points, also tailgated when it was Jack Murphy Stadium
11. You have a favorite- the WAP or the Zoo
12. You been on a MB/PB pub crawl on St. Patrick’s Day (you think)
13. You’ve been on a field trip to see an Imax movie at the Reuben H. Fleet Science Center
14. You still call it the Del Mar Fair
15. You say “I’m going to the track” and people know what you mean
16. You understand what May-Gray and June-Gloom are
17. A famous skateboarder/surfer lives in your town
18. There’s a North County, a South County, and an East County but no Central County
19. You know what it means when a girl in a short skirt is walking on El Cajon Blvd
20. You’ve gotten stuck in the Horton Plaza parking structure traffic after a Padres game
21. You know what “The Merge” is, and will plan your entire day around not being on it during rush hour
22. You’ve been to Belmont Park
23. You remember when the roller coaster was a dilapidated piece of junk that didn’t run for years
24. You’ve taken the Coaster and laughed at people sitting in traffic on the I-5
25. You know the difference between Clairemont Mesa, Kearny Mesa, and Mira Mesa and maybe you remember Serra Mesa, too!
26. You’ve gone to Sea World on a warm day and sat in the first few rows at the Shamu Show to get cooled off
27. You’ve been delayed at the Border Checkpoints on the 5 and the 15
28. Your house doesn’t have air conditioning, and doesn’t need it
29. You know it’s San Diegan, not San Diegoan, or San Diegoite
30. Everyone has their favorite beach
31. No matter what the weather is, there is always someone walking around in a t-shirt, shorts, and flip flops
32. You have family and or friends that have moved to Arizona
33. You used to, and sometimes still do ride the carousel at Seaport Village
34. You know someone who doesn’t own pants, and have a neighbor who doesn’t seem to own a shirt
35. You know what Santa Ana’s are, and that they have literally nothing to do with the city of Santa Ana
36. If the menu doesn’t have California burritos on it, forget it, its not real Mexican food
37. You remember when the admission to the fair included the headlining band!ParticipantI’m not a native, but I’ve been living in San Diego since 1995 (about 12 years). I’ve found something fairly amusing today on other blogs (don’t recall which one), so I would like to share what is considered a “true San Diegan”:
You know you’re a true San Diegan if….
1. Your high school had a surf team
2. You know who Biff and Skippy were
3. You can correctly pronounce Tierrasanta, La Jolla , Rancho Penasquitos, San Ysidro, Otay Mesa, Jamacha, Jamul, Cuyamaca, and El Cajon
4. There are four distinct seasons: Summer, Not Quite Summer, Almost Summer, and Oh Hey Look Its Summer Again
5. Your house is worth more than some small countries
6. You know what MB, OB, and PB stand for
7. Every street name is either in Spanish or Spanish related, and you’re surprised when other areas don’t have this
8. You see weather forecasts for four different climate zones in the same county, and aren’t remotely surprised. The Micro Climate Weather
9. You’ve gone to Mt. Helix in July and known you still need a jacket
10. You’ve tailgated at Qualcomm Stadium, and for bonus points, also tailgated when it was Jack Murphy Stadium
11. You have a favorite- the WAP or the Zoo
12. You been on a MB/PB pub crawl on St. Patrick’s Day (you think)
13. You’ve been on a field trip to see an Imax movie at the Reuben H. Fleet Science Center
14. You still call it the Del Mar Fair
15. You say “I’m going to the track” and people know what you mean
16. You understand what May-Gray and June-Gloom are
17. A famous skateboarder/surfer lives in your town
18. There’s a North County, a South County, and an East County but no Central County
19. You know what it means when a girl in a short skirt is walking on El Cajon Blvd
20. You’ve gotten stuck in the Horton Plaza parking structure traffic after a Padres game
21. You know what “The Merge” is, and will plan your entire day around not being on it during rush hour
22. You’ve been to Belmont Park
23. You remember when the roller coaster was a dilapidated piece of junk that didn’t run for years
24. You’ve taken the Coaster and laughed at people sitting in traffic on the I-5
25. You know the difference between Clairemont Mesa, Kearny Mesa, and Mira Mesa and maybe you remember Serra Mesa, too!
26. You’ve gone to Sea World on a warm day and sat in the first few rows at the Shamu Show to get cooled off
27. You’ve been delayed at the Border Checkpoints on the 5 and the 15
28. Your house doesn’t have air conditioning, and doesn’t need it
29. You know it’s San Diegan, not San Diegoan, or San Diegoite
30. Everyone has their favorite beach
31. No matter what the weather is, there is always someone walking around in a t-shirt, shorts, and flip flops
32. You have family and or friends that have moved to Arizona
33. You used to, and sometimes still do ride the carousel at Seaport Village
34. You know someone who doesn’t own pants, and have a neighbor who doesn’t seem to own a shirt
35. You know what Santa Ana’s are, and that they have literally nothing to do with the city of Santa Ana
36. If the menu doesn’t have California burritos on it, forget it, its not real Mexican food
37. You remember when the admission to the fair included the headlining band!June 23, 2007 at 10:54 AM in reply to: Realtors attend worship service to pray for better market #61604ParticipantThanks for posting. This is icing on the cake.I read it yesterday, and I did not get to posting it on time.
I’m still LOL at this….
June 23, 2007 at 10:54 AM in reply to: Realtors attend worship service to pray for better market #61643ParticipantThanks for posting. This is icing on the cake.I read it yesterday, and I did not get to posting it on time.
I’m still LOL at this….
ParticipantHere is a recent link of where I found a good graph representatoins of subprime mortgage reset timeline.
http://bp1.blogger.com/_nSTO-vZpSgc/Rme8yHvw2iI/AAAAAAAAAz0/911CnD77NNU/s1600-h/mortgage-resets.png
Source: Mike Shedlock / Mish
http://globaleconomicanalysis.blogspot.com/ParticipantHere is a recent link of where I found a good graph representatoins of subprime mortgage reset timeline.
http://bp1.blogger.com/_nSTO-vZpSgc/Rme8yHvw2iI/AAAAAAAAAz0/911CnD77NNU/s1600-h/mortgage-resets.png
Source: Mike Shedlock / Mish
http://globaleconomicanalysis.blogspot.com/Participant31 (almost 32) married recently
Just got my MBA
60K base + 15k(school reimbursment benefits/year)
wife 30 w/ part time work & working on her accounting degree here (converting some unitfrom EU & learning the GAAP rules here)
30K /year
90K total/year family incomeI have a contract with my organization until January 2008 because they’ve paid 80% of my MBA,so it was one of the main reasons I’ve been working there. After January 2008, I’m ready to move on. Company offered me better jobs in Los Angels, Sterling, VA, CT..etc (I’ve turned them down for the time being….I’ve got my parents and brother in San Diego…..and I’m not ready to relocate for just a few more $$$)
Participant31 (almost 32) married recently
Just got my MBA
60K base + 15k(school reimbursment benefits/year)
wife 30 w/ part time work & working on her accounting degree here (converting some unitfrom EU & learning the GAAP rules here)
30K /year
90K total/year family incomeI have a contract with my organization until January 2008 because they’ve paid 80% of my MBA,so it was one of the main reasons I’ve been working there. After January 2008, I’m ready to move on. Company offered me better jobs in Los Angels, Sterling, VA, CT..etc (I’ve turned them down for the time being….I’ve got my parents and brother in San Diego…..and I’m not ready to relocate for just a few more $$$)
-
AuthorPosts
