REO sales and "Market Value"

[residentialguy]

So is it 30% or 40%? I never read in the press about Minneapolis having tough times with foreclosures, short sales and underwater mortgages.

Yes BOY? And your license year? :icon_mrgreen:

Just going by your chart above. Actually, in the Twin Cities it's 46%...and much higher than that in the lower income areas. The inner areas of Mpls and St Paul are 50-65%. Are you suggesting that's not "tough"?

Oh yeah, my Res appraisals licensed year was 98...that doesn't include the training period...son.

 

[George Hatch]

Even the term "negative equity" doesn't quite nail down the level of distress among these property owners. That just refers to how many borrowers owe more than their home is worth. It doesn't seem to catch all the other buyers who lost all of their previous equity from their purchase or most recent refi. Some people put sizable downpayments on their homes or otherwise had large equity positions and subsequently lost all of it or most of it. Even if they're not technically underwater right now they're still under a great deal of what you guys would call undue motivation to sell and book the loss before their position gets even worse. There's no comparison in terms of motivation with the borrowers who had almost nothing in their house to begin with and are now selling short

 

[residentialguy]

While the AI does suggest MV is an ideal market surroundings/conditions ("Market Value - This is the standard definition used in most residential appraisals...This definition refers to a 'fair sale' without 'undue stimulus.' This definition is based on a transaction occurring under ideal market conditions.') which has merit...I tend to lean a bit more on your side George (just not as extreme). I think when all homes are under heavy stress, you need to report that market condition. They will be influenced by the Lender sales, but if there is a market reaction between the two types of sale that shows up as a price variance, then the lender sale needs to be adjusted...whether it's an actual adjustment or a qualitative conclusion in reconciliation whereas the final opinion leans on the non-lender sales.

 

[Randolph Kinney]

Just going by your chart above. Actually, in the Twin Cities it's 46%...and much higher than that in the lower income areas. The inner areas of Mpls and St Paul are 50-65%. Are you suggesting that's not "tough"?

Oh yeah, my Res appraisals licensed year was 98...that doesn't include the training period...son.

That map was from: Map courtesy of Zara Matheson, data courtesy of Zillow.

So what is your data source for Twin Cities at 46%? That belies the Zillow map, doesn't it?

You say it that is tough? Where is the news media shouting about how bad the housing market is?

How do you explain this news source quoting CoreLogic that totally destroys your claim:

March 22, 2011

Foreclosure rates in Minneapolis-St. Paul-Bloomington have increased slightly for the month of December compared with the same period in 2009, CoreLogic reported Tuesday.

The rate of foreclosures among outstanding mortgage loans in the Twin Cities was 2.29 percent in December, an increase of about four-tenths of 1 percentage point compared with the same month in 2009, according to CoreLogic, a California-based provider of consumer, financial and property information to business and government.

Despite the local increase, foreclosure activity in Minneapolis-St. Paul-Bloomington is lower than the national foreclosure rate of 3.58 percent for December.

Meanwhile, the mortgage delinquency rate (those mortgages where homeowner payments are 90 days or more past due) in Minneapolis-St. Paul-Bloomington was 5.59 percent in December, down from 6.05 percent for the same period in 2009, representing a drop of about one-half of 1 percentage point, according to CoreLogic data.

For the U.S. as a whole, the 90-day or more delinquency rate in December was 7.86 percent, down from 8.2 percent for the same month in 2009.

http://finance-commerce.com/2011/03/foreclosure-rate-in-twin-cities-rises-slightly/

June 26, 2012

A new housing report shows that foreclosure rates are falling in the Minneapolis-St. Paul-Bloomingon area.

According to CoreLogic, a business data and analytics company, foreclosure rates are down nearly two percent from the same time last year.

The Minneapolis-St. Paul-Bloomington rate is also lower than the national foreclosure rate, which sits at nearly three and a half percent.

The mortgage delinquency rate is currently at four and a half percent, which is also down from the same time last year.

http://minnesota.cbslocal.com/2012/06/26/metro-foreclosure-rates-fall/

I would guess your idea and estimation of "tough" cannot be squared with the reality that is being reported. Certainly, the national rates are significantly higher.

You have it very easy.

And yes, again, BOY! Age trumps inexperience no matter what you think about your license year.

 

[residentialguy]

That map was from: Map courtesy of Zara Matheson, data courtesy of Zillow.

So what is your data source for Twin Cities at 46%? That belies the Zillow map, doesn't it?

zillow map is a whole area avereage...which says it's 30-40%. You brake that down to zip code and you will see the zip codes that are most proximate to the city centers will show 50-65%. You narrow that to the slum areas and you will find much higher. That's probably true with any major city.

I would guess your idea and estimation of "tough" cannot be squared with the reality that is being reported. Certainly, the national rates are significantly higher. You have it very easy.

While this is a little old, you can be assured that the national average has exceeded my area.

"In the Twin Cities, 46.2 percent of single-family homeowners owe more on the mortgage than the home is worth, according to the latest report from Zillow.com. That's up from 42 percent at the end of last year and 38.7 percent a year ago.
Nationally, negative equity reached a new high with 28.4 percent of all single-family homes with mortgages underwater, up from 27 percent in the fourth quarter."

[URL]http://www.startribune.com/business/121507529.html?refer=y[/URL]

And yes, again, BOY! Age trumps inexperience no matter what you think about your license year.

Yeah, right. You shouldn't have a problem getting a high exec job at any company. Btw, out of curiosity. How old are you and how old do you think I am?

And as far as reporting bad news...what can I say. That just proves that California is filled with a bunch of whining, tofu eating wimps. :icon_mrgreen:

 

[residentialguy]

[URL]http://www.zillow.com/visuals/negative-equity/#14/44.9746/-93.2572[/URL]

Type in 55415 for Mpls and 55101 for St Paul

Highest 5% in the whole United States of America. We were talking about underwater mortgages, so try to keep on point, old man.

In case you forgot

As you can see, the boy in Minnesota does not have a problem with underwater mortgages.

Now, you were saying????


:new_smile-l:

 

[Randolph Kinney]

While this is a little old, you can be assured that the national average has exceeded my area.

"In the Twin Cities, 46.2 percent of single-family homeowners owe more on the mortgage than the home is worth, according to the latest report from Zillow.com. That's up from 42 percent at the end of last year and 38.7 percent a year ago.
Nationally, negative equity reached a new high with 28.4 percent of all single-family homes with mortgages underwater, up from 27 percent in the fourth quarter."

[URL]http://www.startribune.com/business/121507529.html?refer=y[/URL]

Nice article, however, check out the report that they have cited: http://zillow.mediaroom.com/file.php/1446/Zillow+Neg+Equity+Report_Q1.pdf

You will see this:

Yeah, right. You shouldn't have a problem getting a high exec job at any company. Btw, out of curiosity. How old are you and how old do you think I am?

And as far as reporting bad news...what can I say. That just proves that California is filled with a bunch of whining, tofu eating wimps. :icon_mrgreen:

I believe that your are under 55. I am 65, on Medicare and drawing Social Security. I appraise and do research as a hobby.

Don't forget the "fruits and nuts" that are here to add to your whining, tofu eating wimps observation. Some are Realtors and appraisers too! :laugh:

 

[Randolph Kinney]

[URL]http://www.zillow.com/visuals/negative-equity/#14/44.9746/-93.2572[/URL]

Type in 55415 for Mpls and 55101 for St Paul

Highest 5% in the whole United States of America. We were talking about underwater mortgages, so try to keep on point, old man.

Now I raise you, BOY, see if you can beat this:

 

[residentialguy]

I did have to chuckle to see you avoid my post 216 with more specific data and chuckle a bit harder when I saw that you arrowed Mpls at 39.9% and avoided the fact that it is is Higher than the National rate as well as higher than 4 of the 6 major cities in California.


I suggest you guys toughen up and stop whining....and maybe eat a steak once in a while. :laugh:


I do hope that you realize that the age thing is in fun. You are slightly older than me and I hold much respect for my elders. Not to say you're old...just older.

 

[residentialguy]

Nah...can't beat that one, old man. Let's just say I'm happy enough being in the top 5% of SOL. :laugh: