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peterb
15 years ago

WOW! 30% of all CA homes that
WOW! 30% of all CA homes that have a mortgage are in a negative equity position already!! Gawd, what’s the end of 2009 gonna look like?
Nice analysis and link. Thank you.

kewp
15 years ago

Here’s an easy solution to
Here’s an easy solution to put a bottom under US real estate in under a year.

Give an instant green card + work permit to any foreign citizen that purchases a property in the United States with a 20% down fixed mortgage from a domestic S&L. Mortgage insurance will be provided by the Fed.

Providing the resident alien maintains a positive legal and credit record, offer them full citizenship after four years.

We’ll simultaneously pull all the best human resources (and their associated assets) from the rest of the world and bail out the domestic housing and banking industry.

As a symbol of the program we could gild the Statue of Liberty with gold leaf. That would look rad.

HereWeGo
15 years ago
Reply to  kewp

kewp wrote:Here’s an easy
[quote=kewp]Here’s an easy solution to put a bottom under US real estate in under a year.

Give an instant green card + work permit to any foreign citizen that purchases a property in the United States with a 20% down fixed mortgage from a domestic S&L. Mortgage insurance will be provided by the Fed.

Providing the resident alien maintains a positive legal and credit record, offer them full citizenship after four years.

We’ll simultaneously pull all the best human resources (and their associated assets) from the rest of the world and bail out the domestic housing and banking industry.

As a symbol of the program we could gild the Statue of Liberty with gold leaf. That would look rad. [/quote]

Ha. Independently, I’ve had much the same thought. That sort of immigration would be great for our current woes.

SD Realtor
15 years ago
Reply to  HereWeGo

Rich if you can, try to ping
Rich if you can, try to ping Ramsey to see if there will be anyway to get official statistics for the number of loans adjusted, the amount of dollars reworked, the rates of recidivism of reworked loans, etc…

To me it doesn’t matter if 30% or 90% of the homes are underwater. It is more important to see how much money will be blown on this and also how many foreclosures do get postponed because of this.

Mayer
15 years ago
Reply to  SD Realtor

SD Realtor wrote:Rich if you
[quote=SD Realtor]Rich if you can, try to ping Ramsey to see if there will be anyway to get official statistics for the number of loans adjusted, the amount of dollars reworked, the rates of recidivism of reworked loans, etc…

To me it doesn’t matter if 30% or 90% of the homes are underwater. It is more important to see how much money will be blown on this and also how many foreclosures do get postponed because of this. [/quote]

SDR, I think you’ll find this interesting from CR. According to NAR, 50% of loan mods aren’t working. The borrower re-defaults.

http://calculatedrisk.blogspot.com/2008/11/nar-re-default-rate-50-of-modifications.html

urbanrealtor
15 years ago
Reply to  Mayer

I would be really interested
I would be really interested in hearing loan mod numbers that are not anecdotal.

Does anybody have some on the current generation of mods?

Perhaps the numbers would be more useful in a year or so.

patientrenter
15 years ago
Reply to  urbanrealtor

“Instead, we have a form of
“Instead, we have a form of subsidized housing for the most undeserving. This is how it works:….”

Ramsey Su for head of HUD!

sdrealtor
15 years ago
Reply to  urbanrealtor

More anecdotal information
More anecdotal information but I have several clietns that applied for loan modifications. Some were offered rates above current market rates and most decided to try a short sale or walk away after seeing what was actually offered solved nothing for them.

Anonymous
Anonymous
15 years ago
Reply to  sdrealtor

“If the foreclosures were
“If the foreclosures were allowed to happen, more properties would have gone from weak hands to strong hands by now. Homes would have gone to deserving homeowners who had been saving for years to buy a home, instead of those who lied about their income and are now rewarded with living in a home they could never have been able to afford without government subsidy. Properties would have gone to investors who are willing to purchase based on fundamentals rather than speculators who would pay anything hoping that they can sell to a greater fool.”

Thanks so much this. “…keeping homeowners in their homes” is the single most infuriating phrase I hear. And I hear it all too often. Prudent savers, such as myself, that didn’t buy into the bubble; that didn’t take out toxic loans; that saved and waited patiently for the housing bubble to burst; must wait even longer while the govt. desperately tries to blow air back into the bubble.

rockclimber
15 years ago
Reply to  Anonymous

“while the govt. desperately
“while the govt. desperately tries to blow air back into the bubble”

You know the sound that is made when you desperately try to reinflate a balloon with a hole in it?

I can invision a good satrical cartoon… you’ll have to use your imagination.

1st pane: Uncle Sam holding the tattered remains of a balloon. On the side of the balloon are the words, “Housing Bubble”

2nd pane: Uncle Sam blows with all his might into the balloon producing only flapping and the sound one would expect.

3rd pane: A red faced Uncle Sam says, “Pardon me” to a couple passing by holding their noses and shooting him a glare.

sdrealtor
15 years ago
Reply to  rockclimber

Folks on this site tend to be
Folks on this site tend to be very myopic. The country doesnt live and die with SD or even SoCal. In many parts of the country where housing is much cheaper, didnt inflate as much as here if at all and local economies are far weaker this is a real problem that needs to be addressed. Much of this country is in serious pain while we continue whistling along enjoying our beautiful weather and strong job markets.

Don’t worry as nothing they can do will cure the excesses that exist here. The sad truth is many upside down homeowners here dont want to stay in their homes. They want out asap now that they realize they arent going to FlipThisHouse (TM) for a $200K profit in 2 years.

In other more established areas of the country where people are far more tied into their communities, there is value to keeping people in their homes because people actually car about staying in their homes and preserving their communities. Sadly, that is very rare in SoCal.

poorsaver
15 years ago

I liken these foreclosure
I liken these foreclosure modifications that are ultimately doomed to failure again, to convicts that are “rehabilitated” then sent out on the streets, only to see a high percentage of them right back in prison a year later. I think we should put all the perps in jail and keep them there, then qualified buyers can realistically occupy those homes.