Housing Bubble Bursting?

[Terrel L. Shields]

U.S. class-action lawyers who have sued subprime mortgage lenders are now scrutinizing Wall Street banks that sold packages of risky loans to investors and credit analysts that served up top ratings on the securities.

Nothing new under the sun....Anyone remember the Banks that were spanked in the 90's over keeping funds that didn't belong to them? Putting investors into funds that were sure money losers? "Investment" banks using their own research analysts to pump stocks...a sort of inflated appraisal..during the dot com bust? Blood on the Street...Wall Street. Great book still fascinating to read.

 

[Pamela Crowley (Florida)]

Can this be correct?????

http://nationalrealtynews.com/content/templates/standard.aspx?articleid=511&zoneid=1

3 Out of 1000 Owners Have Lost Their Homes This Year

3 out of every 1,000 homeowners in the United States lost their homes to foreclosure in the first half of the year. That's up 41 percent compared to the same period last year, according to the latest numbers from ForeclosureS.com, a California-based real estate investment advisory firm and longtime publisher of foreclosure and property information.

Then again, look at what they are 'selling'.

:new_2gunsfiring_v1:

Seeking more fools!

 

[Randolph Kinney]

Can this be correct?????

http://nationalrealtynews.com/content/templates/standard.aspx?articleid=511&zoneid=1

3 Out of 1000 Owners Have Lost Their Homes This Year



Then again, look at what they are 'selling'.

:new_2gunsfiring_v1:

Seeking more fools!

I suppose that is a transfer rate or houses sold, not actual as a percent of the total housing stock.

[FONT=Arial, Helvetica, sans-serif]These per capita numbers translate to almost a quarter-million residential properties (247,907) that ended up in the hands of banks or lenders this year[/FONT]

I like the way they make their conclusion:

[FONT=Arial, Helvetica, sans-serif]some analysts even predict the increased tightening of lending practices may actually have a detrimental affect on homeownership overall.[/FONT]

 

[George Hatch]

There's nothing like seeing a graph:

The red line represents the current NOT rate. Look where it is in relation to our last economic downturn in the mid-90s. Notice the much steeper rate of increase. When combined with the ARM resets that are coming due it looks to me like this foreclosure spike is going to dwarf the previous spike.

 

[moh malekpour]

Lenders set to foreclose on 1.8m borrowers in sub-prime crisis

Can this be correct?????

http://nationalrealtynews.com/content/templates/standard.aspx?articleid=511&zoneid=1

3 Out of 1000 Owners Have Lost Their Homes This Year



Then again, look at what they are 'selling'.

:new_2gunsfiring_v1:

Seeking more fools!

This report from the times seems to confirm that figure
http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article2067174.ece

Mortgage banks are expected to foreclose on 1.8 million American home loans this year as already-stretched “sub-prime” borrowers contend with rising interest rates, according to new research.

The predicted foreclosures represent a 44 per cent jump on last year and are expected to leave about 720,000 mortgage holders without a house, with potentially far-reaching consequences for the global economy.

A foreclosure is a legal process typically set in motion when a borrower falls 90 days behind on mortgage repayments. About 40 per cent end in a forced sale or repossession of the house, while the bank and borrower reach an alternative repayment schedule in the remaining cases.

The number of foreclosures jumped by 87 per cent to 164,644 in June, compared with the year-earlier period, according to new figures released by RealtyTrac, the American mortgage research firm.

 

[Greg Bell]

What Will Happen when Home Bank Forecloses?

Since the dollar is worth a lot less because of inflation and irresponsible monetary policy, you are now able to purchase less with your current income. Think about the nature of inflation. When you print too much money, you devalue the worth of the current money supply. This is basic economics. What makes something valuable? The amount and scarcity of an item in relation to the demand. Money for a few years was so cheap, it made no sense to save and the public followed. The leaders of this consumption used every advertising medium available. If you drive a two year old car you simply were an old school idiot with no taste for the finer things in life. Have you noticed those credit card commercials where the person paying with a check or cash is seen as a leper? Everyone is having a merry time paying with their Visa and Mastercard but god forbid you show cash you dirty rotten animal. How dare you stop the flow of credit to the rightful owners of consumption

 

[Randolph Kinney]

Another pounding

Problems in America's housing market begin to undermine confidence in the global credit bubble

WHEN the man approaching you is wearing boxing gloves, it makes sense to duck. The crisis in the American subprime-mortgage market was clearly visible months ago. Too many homebuyers with a poor or non-existent payment record were lent too much money. But when the rating agencies on July 10th finally got round to acknowledging the problem, investors were clobbered. Shares briefly wobbled and the dollar sank. Swap spreads, a measure of risk aversion, reached their highest point since 2003. Credit derivatives, where much of the financial innovation in recent years has taken place, recoiled (see chart). Investors flocked to the haven of Treasury bonds.

 

[Steve Owen]

Can this be correct?????

http://nationalrealtynews.com/content/templates/standard.aspx?articleid=511&zoneid=1

3 Out of 1000 Owners Have Lost Their Homes This Year

If it is true, then it is a sign of really serious trouble. There is an easy way to check it... just look up the census figures for the number of housing units in your area, then see if you can find an accurate figure for the number of foreclosures in your area this year. Does that number equate to 0.003 of the total housing stock? It certainly seems possible, but I haven't done the check yet for my area.

One thing I don't like in the article is the use of the term "per capita." On hte one hand, they seem to be saying the statistic is "per houshold" but, then they turn aroung and use the term "per capita." Those are two very different counts. It would be better if they compared the number of foreclosures to the number of housing units... a figure that is easily available from census data.

 

[moh malekpour]

If it is true, then it is a sign of really serious trouble. There is an easy way to check it... just look up the census figures for the number of housing units in your area, then see if you can find an accurate figure for the number of foreclosures in your area this year. Does that number equate to 0.003 of the total housing stock? It certainly seems possible, but I haven't done the check yet for my area.

One thing I don't like in the article is the use of the term "per capita." On hte one hand, they seem to be saying the statistic is "per houshold" but, then they turn aroung and use the term "per capita." Those are two very different counts. It would be better if they compared the number of foreclosures to the number of housing units... a figure that is easily available from census data.

The article refers to all US homes not a particular region, state or town. If you know or can find out the total number of US homes, then you can find out if it is true or not. The other article that I posted from the times refers to mortgage bankers report that there is going to be 1.8 million American homes foreclosed this year. If these two articles are correct and you combine these two reports, it is easy with a simple calculation to find out how many homes are out there in the US.
We got 1,8000,000 foreclosed homes throughout the US. This figure is .003 of total homes in the US. What is the total number of homes in the US? The answer is 6,00,000,000 homes. Are there 600 million homes in the US? Does anyone know? The census 2006 shows total households 299,389,484. If this a correct figure, then one of the figures on those two articles is incorrect but if we take the second figure of the times article that predicts 720,000 foreclosures, then the foreclosure of 3 out of 1000 homes makes more sense.
In that case, there should be 898,195 foreclosers which is much closer to 3 of 1000 homes than 1,8000,000 foreclosers

 

[Karl]

If it is true, then it is a sign of really serious trouble. There is an easy way to check it... just look up the census figures for the number of housing units in your area, then see if you can find an accurate figure for the number of foreclosures in your area this year. Does that number equate to 0.003 of the total housing stock? It certainly seems possible, but I haven't done the check yet for my area.

One thing I don't like in the article is the use of the term "per capita." On hte one hand, they seem to be saying the statistic is "per houshold" but, then they turn aroung and use the term "per capita." Those are two very different counts. It would be better if they compared the number of foreclosures to the number of housing units... a figure that is easily available from census data.

Pinal County AZ exceeds .003 Almost .006