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Post by jeffolie on Jul 10, 2007 15:55:27 GMT -6
By the way, want to see many more foreclosures? You are going to. Why? Because these mortgage backed bonds are now trash and getting anyone to buy any new ones is going to be nearly impossible. This means that you can forget about any non-prime buyer being able to get financed unless they can handle 18% interest rates and any that are facing resets will not be able to refinance. This is going to generate an absolute tsunami of foreclosures. market-ticker.denninger.net/
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Post by jeffolie on Jul 10, 2007 16:26:55 GMT -6
MarketWatch: New S&P Methodology is "Death Warrant" for Subprime Industry Rex Nutting at MarketWatch comments on the new S&P rating change: New methodology is death knell for the troubled industry
Standard & Poor's just drove a huge harpoon into the heart of the mortgage credit bubble, and it's going to take a long time to clean up the mess once the beast finally dies.
... S&P isn't going along with the charade anymore. S&P said it would change its methodology for rating hundreds of billions of dollars in residential-mortgage-backed securities. And it would review its ratings on hundreds of billions of dollars in the more complex collateralized debt obligations based on those subprime loans.
A lot of debt will be downgraded to junk status. ...
S&P's announcement is a death warrant for the subprime industry.
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Post by beachbumbob on Jul 10, 2007 18:22:01 GMT -6
ARM resets on many sub-primes will be hitting strong from this quarter right thru to the end of 2008. Banks are sitting on probably the largest inventory of abandoned properties ever (no link) creating neighbor blight forcing down home values around them....The banks are waiting to offload, perhaps thinking, the values are going to stablized....joke. Obviously they are in way over their heads. Those loan origination fees that looked so good years ago.....long gone to cover the losses that will be in the hundreds of billions
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Post by jeffolie on Jul 12, 2007 17:42:26 GMT -6
From Bloomberg. “California had the second-highest rate, with one filing per 315 households, and the most filings overall, 38,801, for the sixth month in a row.”
“Six of the top 10 U.S. foreclosure rates for metropolitan areas were in California. Stockton, Merced, Modesto and Riverside- San Bernardino occupied the top four spots. Vallejo-Fairfield was seventh and Sacramento eighth.”
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Post by jeffolie on Jul 12, 2007 17:50:52 GMT -6
From Bloomberg: U.S. Foreclosures Jump 87 Percent as Lending Practices Tighten
There were 164,644 loan default notices, scheduled auctions and bank repossessions in June, led by filings in California, Florida, Ohio and Michigan that together accounted for half the total, according to RealtyTrac, a seller of foreclosure data.
The June foreclosure figure was 7 percent lower than that in May, when filings reached a 30-month high ... ... An estimated 58 percent of properties in the foreclosure process are linked to borrowers with subprime loans, and RealtyTrac expects U.S. foreclosures to reach 1.8 million by year's end ...
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Post by jeffolie on Jul 13, 2007 18:11:37 GMT -6
“Anyone who’s purchased a home is familiar with a mortgage getting sold to third parties who end up servicing it. According to the Federal Deposit Insurance Corp., the big investing houses have seen the value of the homes they own balloon by 53% from last year. As foreclosures blossom, investment bankers have become homeowners by default.”
“The banking houses must now choose between paying the costs until an appropriate price can be realized on the property, or dumping it below market value.”
“This is a crisis of banks’ own making. By fueling the homebuying frenzy with creative mortgage financing, investment bankers may now become the catalyst of their own devaluation.”
“Forget the notion that metro-area -real estate foreclosures are cooling off. For the first half of the year, the seven-county Denver area logged more than 12,000 foreclosures, a 25 percent increase over the first six months of 2006.”
“And expect them to keep piling up for several more years.”
“In certain neighborhoods, the current foreclosure problem is worse than it was in the late 1980s, said real estate broker Beverly Meade. ‘Some whole areas are being turned into ghost towns,’ she said.”
“She said she recently sold one foreclosed home in Aurora for $80,000. The home would have fetched $200,000 three years ago, Meade said.”
“Meade said she recently searched homes for sale in Denver priced at $105,000 or less and found 85. ‘Three years ago, you wouldn’t have found one home under $105,000 in Denver,’ she said.”
“‘Just a couple of years ago, people were saying it was not that big of a problem and it was a lagging indicator, just a small bump in the economy, (that) the housing bubble is a myth. That turned out to be absolutely incorrect,’ said -Zachary Urban, who heads the Colorado Foreclosure Hotline.”
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Post by jeffolie on Jul 13, 2007 18:39:31 GMT -6
This brings the total number of foreclosures to 925,987 for the first half of the year.
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Post by jeffolie on Jul 21, 2007 15:53:56 GMT -6
“Statewide [California], there are nearly 500,000 homeowners currently facing foreclosure. Eleven percent of all subprime adjustable rate mortgages are past due, and analysts keeping track of it all say it will get worse.” abclocal.go.com/kgo/story?section=local&id=5497281
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Post by beachbumbob on Jul 23, 2007 5:11:20 GMT -6
foreclosure is but one outcome of the bad financial decisions that drove the bubble...as this bubble crashes retirement and pension funds are hit as well and the value of the dollar drops more.........
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Post by judes on Jul 24, 2007 14:02:39 GMT -6
Wo, take a look at this chart. countrywide-foreclosures.blogspot.com/Does this look indicative of a housing market downturn that is leveling off any time soon? I don't think so. Country Wide tanks big today because they speak openly in a conference call about data that has been available for a long time. What is wrong with that picture? I still get about three or five offers in the mail a week from Country wide to refinance my current mortgage with them to an ARM mortgage. Now why on Earth would I want to do that?? I have a low fixed rate as it is now.
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Post by unlawflcombatnt on Jul 24, 2007 17:30:05 GMT -6
WHO, take a look at this chart. Does this look indicative of a housing market downturn that is leveling off any time soon? No. The foreclosure "curve" looks like one that's increasing to the point of going almost straight up. Or to look at it from another angle, home prices and sales are going to go almost straight down before they "level off."
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Post by jeffolie on Jul 24, 2007 17:35:53 GMT -6
House sales have declined tremendously YOY, but prices have barely declined.
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Post by blueneck on Jul 24, 2007 17:57:03 GMT -6
Thats a great link Judes
I like this quote from the site
I am seeing an awful lot of Auction signs on homes, multiples in many neighborhoods - and neighborhoods where in the not so far past homes were seldom on the market more than a month, and usually only a couple weeks. Also seeing a lot of the orange repo tags on homes as well.
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Post by jeffolie on Jul 24, 2007 18:29:47 GMT -6
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Post by jeffolie on Jul 24, 2007 18:33:28 GMT -6
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Post by judes on Jul 24, 2007 19:52:19 GMT -6
I don't think any lenders will be left untouched. This article gives honorable mentions to my home town Flint, MI. It is really bad here. www.financialarmageddon.com/"Problems from Fannie's and Freddie's risky loans are mounting. Foreclosures are on the rise, and it's harder to sell the houses they own as a result. Some are worth pennies on the dollar. Fannie has a "charming colonial" on the market for $7,000 in Detroit, despite the $59,000 outstanding on the loan. The property, repossessed in May, has been looted, with the kitchen sink and drainpipes stolen. Meanwhile, agent Debbie Leslie of Le Valley Real Estate has cut the price on a home Freddie owns in Flint, Mich., five times this year, from $10,900 to $5,250. The mortgage is $26,250. "We're waiting to see where the floor is," says Leslie."
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Post by jeffolie on Jul 30, 2007 16:08:19 GMT -6
"We could easily surpass 2 million foreclosure filings by the end of the year, which would represent a year-over-year increase of over 65 percent," said RealtyTrac CEO James J. Saccacio. California, Florida, Texas and Ohio were among the states with the highest number of homes receiving foreclosure-related notices, the firm said. In the RealtyTrac report, California led the nation in foreclosure filings and the number of homes receiving notices. Some 104,572 properties in the state received notices of default or other foreclosure notices -- more than double the year-ago total and an increase of 80 percent from the previous six months, the firm said. biz.yahoo.com/ap/070730/foreclosure_rates.html?.v=1
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Post by redwolf on Jul 30, 2007 16:34:29 GMT -6
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