[TommyJefferson]

Last night ABC News was raving about the shocking and totally unexpected rise in forclosures.

They showed a nice lady in Richmond, TX weeping in her soon-to-be-forclosed home. She had been "forced" to take out a second mortgage on the house to "pay some bills".

They showed a broker of forclosed properties in Oakland, CA who lameted how evil it was that all these people were "forced" into these "loans they could not afford".

Recently Senator Dodd held a "summit" to address this "crisis". Here are some comments...

“The Mortgage Bankers Association endorses the homeownership preservation principles developed under Chairman Dodd's leadership. ” said John M. Robbins, CMB, Chairman of the Mortgage Bankers Association.

Carl Levinson, President and Chief Executive Officer of Citi's Consumer Lending Group, said: “Citi applauds Chairman Dodd's leadership in addressing the needs of families who are at risk of losing their homes to foreclosure.”

“We support Sen. Dodd's efforts to help families who are struggling with their mortgage payments,” said David Lowman, CEO of Chase Home Lending, the mortgage unit of JPMorgan Chase.

“The principles that Senator Christopher Dodd and the Senate Banking Committee have developed are aligned with the homeownership preservation and loan modification practices Litton has been employing for years to help those borrowers stay in their homes,” said Larry B. Litton, Jr. President and CEO of Litton Loan Servicing.

Brendan McDonagh, CEO of HSBC Finance Corporation, said: “As part of its ongoing commitment to sustaining homeownership through responsible lending and servicing, HSBC supports the guidance provided by the U.S. Senate Banking Committee’s Statement of Principles announced today by Senator Dodd."

“We applaud Senator Dodd's leadership and support his principles to preserve homeownership,” said Richard F. Syron, chairman and CEO of Freddie Mac.

“We're pleased to sign on to the statement of principles and we appreciate Senator Dodd's leadership in convening the Homeownership Preservation Summit,” said Daniel H. Mudd, President and CEO of Fannie Mae.

Senator Dodd has invited other organizations interested in agreeing to the principles to contact Banking Committee staff.

[roccman]

50% off Florida Townhomes!!!

[strider3700]

HAHAHAHAHAH

"They promised us they wouldn't go under market value"

They didn't. The market was only willing to pay half what you did. The fact that you over paid is besides the point.

These guys are just learning a harsh lesson about buying early when inventory is still building up.

[ColossalContrarian]

$this->bbcode_second_pass_quote('roccman', '[')url=http://www.winknews.com/news/local/7896352.html?video=YHI&t=a]50% off Florida Townhomes!!![/url]

[some_guy282]

$this->bbcode_second_pass_quote('TommyJefferson', 'R')ecently Senator Dodd held a "summit" to address this "crisis". Here are some comments...

[roccman]

Poor people should not live in big houses and drive nice cars...

[PraiseDoom]

$this->bbcode_second_pass_quote('some_guy282', '')$this->bbcode_second_pass_quote('TommyJefferson', 'R')ecently Senator Dodd held a "summit" to address this "crisis". Here are some comments...

[roccman]

Pimp my house



Ohhhhhhhhhhhh...the desperation is truely setting in.

[Roccland]

Not a good sign.

[chumley]

What a mess. All parties involved are to blame.....lendors, realtors and buyers. I bought my house in 1998 at $160K(fixed rate of 5%), about $60K below market value at the time(desperate fire sale). My wife and mother-in-law kept on pushing to sell during the boom to turn a big profit and put it down on a larger house. I said what for, everything is ridiculously priced now, we will just stay put. Whew, glad I held out.
Now even if the market loses half it's value I will still be sitting pretty.

As for the current market...I hope it does not completely melt down. A high tide raises all boats and a low tide beaches all boats(except the very rich).

The recent run up on real estate was ridiculous and now we are seeing the downside. Treating your equity like an ATM was stupid. I for one live within my means and refused to saddle myself with debt. I have always believed debt makes you a slave to it. The people who were not prudent are in for hard times and it is really sad. Though my sympathy is tempered by the fact that they put themselves in this position and if they are looking for a scapegoat they should look in the mirror first.

How will this problem affect the economy is the big question now. All prognostication now is speculative as to the effects, but the trends do not look favorable.

One outlook I have is this could positively affect peak oil. The recession of the 1970's, according to some articles I have read, actually pushed PO out anywhere from 10 to 20 years. My hope is if the economy sours consumption could be curtailed. With all the current press energy and global warming are getting now maybe this will serve as a catalyst to change some of our bad habits.

[Roccland]

"How will this problem affect the economy is the big question now. All prognostication now is speculative as to the effects, but the trends do not look favorable. "

Something like this perhaps??

[Roccland]

Those with good credit can't make payments



Rising late payments and defaults on so-called Alt A mortgages made last year are ``disconcerting'' and delinquent borrowers appear to be ``finding it increasingly difficult to refinance'' or catch up on their payments, S&P analysts said today in a statement. ``Serious'' delinquencies, foreclosures and seized property among ``prime jumbo'' mortgages in bonds from 2006 reached the highest among loans of less than 13 months since at least before 2000, S&P said in a separate report.

[PraiseDoom]

$this->bbcode_second_pass_quote('Roccland', '
')
Rising late payments and defaults on so-called Alt A mortgages made last year are ``disconcerting'' and delinquent borrowers appear to be ``finding it increasingly difficult to refinance'' or catch up on their payments, S&P analysts said today in a statement. ``Serious'' delinquencies, foreclosures and seized property among ``prime jumbo'' mortgages in bonds from 2006 reached the highest among loans of less than 13 months since at least before 2000, S&P said in a separate report.

[I_Like_Plants]

$this->bbcode_second_pass_quote('Roccland', '
')Rising late payments and defaults on so-called Alt A mortgages made last year are ``disconcerting'' and delinquent borrowers appear to be ``finding it increasingly difficult to refinance'' or catch up on their payments, S&P analysts said today in a statement. ``Serious'' delinquencies, foreclosures and seized property among ``prime jumbo'' mortgages in bonds from 2006 reached the highest among loans of less than 13 months since at least before 2000, S&P said in a separate report.

[strider3700]

The decision to cut and run has to be made early. So early that you look like a fool for doing it and it's ultra hard to justify.

I think about leaving my job selling the house and moving even further away to the middle of nowhere where I can buy a few hundred acres and set up shop. It's an insane move but I don't think it's one that can be made if I wait much longer. Am I a year or two behind Plants in things catching up? At what point do I hit that point of locked in?

Not easy questions to answer.

[I_Like_Plants]

$this->bbcode_second_pass_quote('strider3700', 'T')he decision to cut and run has to be made early. So early that you look like a fool for doing it and it's ultra hard to justify.

I think about leaving my job selling the house and moving even further away to the middle of nowhere where I can buy a few hundred acres and set up shop. It's an insane move but I don't think it's one that can be made if I wait much longer. Am I a year or two behind Plants in things catching up? At what point do I hit that point of locked in?

Not easy questions to answer.

[Roccland]

Foreclosure crisis is just beginning

"There has been a flood of news headlines recently about skyrocketing foreclosures in the subprime mortgage market, which serves people with lower incomes or blemished credit histories. In response, the mortgage industry trade association and the Federal Reserve Bank have rushed to reassure us that these foreclosures are just a "speed bump" on the highway to homeownership that subprime lending supposedly provides.

But they're wrong. We're just seeing the beginning of the foreclosure crisis. My organization, the Center for Responsible Lending, estimates that 2.2 million borrowers who got subprime loans since 1998 either have lost or will lose their homes through foreclosure over the next few years. This includes one of every five borrowers who got subprime loans in 2005-06, a default rate unmatched in the history of the modern mortgage market."

[Roccland]

Fall of the House of Beazer

"Beazer Homes, Oliver North on line 2!"

As if weak housing numbers, declining prices, and greater buyer incentives weren't enough, Beazer Homes (NYSE: BZH) reported it fired its chief accounting officer yesterday for attempting to shred documents related to a federal mortgage-lending probe.

[Roccland]

Resale Home Prices Are Likely to Fall in Many Markets

From John Burns Real Estate Consulting.

If you're in one of the top cities, get ready for an economic collapse the likes you've never seen before:


We calculated how much prices would have to fall for housing costs (including mortgage payments, property taxes and down payments) to return to each market’s typical ratio of housing costs / income.

City / Current Price / Price Drop % / Price Drop $

Miami, FL $350,000 -41.4% -$145,000
Riverside-San Bernardino, CA $390,000 -41.0% -$160,000
Los Angeles, CA $570,000 -39.5% -$225,000
Baltimore, MD $284,858 -37.2% -$105,858
Orange County, CA $720,000 -34.0% -$245,000
Washington D.C., DC-VA-MD-WV $404,517 -33.3% -$134,517
Las Vegas, NV $305,975 -33.0% -$100,975
Seattle, WA $415,000 -31.9% -$132,500
Portland, OR-WA $280,000 -31.4% -$88,000
Oakland, CA $635,500 -30.0% -$190,500
Sacramento, CA $375,000 -29.3% -$110,000
San Diego, CA $565,000 -29.2% -$165,000
Orlando, FL $245,000 -28.6% -$70,000
Phoenix, AZ $263,000 -24.0% -$63,000
Baton Rouge, LA $179,306 -22.5% -$40,306
Fort Myers, FL $255,000 -22.4% -$57,000
Myrtle Beach, SC $207,816 -20.6% -$42,816
Tucson, AZ $230,000 -20.4% -$47,000
Boise City, ID $213,498 -20.4% -$43,498
Virginia Beach, VA-NC $235,034 -20.0% -$47,034
Tampa, FL $190,000 -18.4% -$35,000
Minneapolis, MN-WI $234,000 -15.0% -$35,000
New York, NY-NJ $500,282 -13.0% -$65,282
Jacksonville, FL $187,000 -11.2% -$21,000
Salt Lake City, UT $233,013 -9.9% -$23,013
St. Louis, MO-IL $166,250 -9.8% -$16,250
San Antonio, TX $145,700 -9.4% -$13,700

[Roccland]

Once hyperinflation kicks in, all these F'd borrowers should be ok...right?