Posted on 09/18/2007 7:20:16 AM PDT by Hydroshock
NEW YORK (CNNMoney.com) -- Late summer brought no relief from soaring foreclosures. The number of homes in some stage of default jumped 36 percent month-over-month in August, according to a regular monthly survey.
Delinquencies and defaults more than doubled year over year to 243,947, according to August figures released Tuesday by RealtyTrac, a marketer of foreclosed properties. RealtyTrac's forecast is for total foreclosure filings to exceed 2 million this year.
"The jump in foreclosure filings this month might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable rate loans are beginning to reset now," James Saccacio, chief executive of RealtyTrac, said in a statement.
Caught in a toxic mortgage October is expected to be a peak month for hybrid adjustable rate mortgages (ARMs) to reset, with the interest rates on some $50 billion worth of loans poised to go up dramatically.
In the past few months, the foreclosure story has become a tale of two regions. Some of the hardest hit states have traditionally been in the Midwest, where plant closings and job losses have hit the economy there hard.
(Excerpt) Read more at money.cnn.com ...
It's the worst nightmare in the real estate business (construction, appraisal, sales, escrow, title, mortgage loans and all). The Ponzi scheme has began to crumble. People no longer believe their house will be worth more tomorrow than it is today.
In fact, they're certain it'll be worth less.
For those who have no real assets tied up in their home, those who didn't put much down or who have not "owned" for more than a few years, how can they NOT walk away when the wake up to find they owe $150k more than the house will sell for?
Momentum is beginning to build to the downside...acceleration is now certain.
A rate cut is not help this.
It will peak around the time of the 2008 elections.
I expect dims in all 3 branches of govt and soaring taxes and deficits in 2009...and a continuously falling dollar as the Fed tries to bail out, yet again, an economy in desparate need of wholesale correction.
Prices are still rising here. Of course we’ve only had about 4% annual appreciation the last 5-6 years unlike some other locations.
Prices increased over 300% in 5 years. They'll give at least 1/2 of that back before it's over.
Those who bought 4 or more years ago will be able to ride it out IF THEY CHOOSE TO AND IF THEY KEEP THEIR JOBS, but those who bought 3 or less years ago...especially with very little down (40% of all buyers) will take a very hard blow.
Socal and the Bay area are worse.
"We have Nicaragua, soon we will have El Salvador, Guatemala, Honduras, Costa Rica and Mexico. One day, tomorrow or 15 years from now, we're going to take 5 to 10 million Mexicans and they're going to have one thing in mind - cross the border, go into Dallas, go into Houston, go into New Mexico, go into San Diego, and each one has embedded in his mind the idea of killing 10 Americans. defaulting on a sub-prime loan.”
Think of it as the “kinder and gentler” invasion.
I’ve said it many times, its going to get worse long before it gets better.. we are only seeing the very tip of the iceburg on this...
The scale and impact of the housing collapse is going to be much larger than anything we’ve seen since the great depression... the S&L collapse is a drop in the bucket compared to what this will wind up being.
Hopefully it will deflate slow enough that an all out depression does not occur, if however it deflates rapidly, its going to get VERY VERY ugly.
People always forget...
in Southern Cal the last time it collapsed, it took over 8 years of paying down your mortgages just to be able to sell for break even.
This time it will be even worse.
Between the housing bust and the government getting 'religion' on illegal immigrant enforcement, we got ourselves a Perfect Storm.
Quite plausible. The banks are always looking for ways to lend to the uncreditworthy--
On other threads you're claiming we border security 'zealots' are about to get the total amnesty we deserve 'cause we had the temerity to oppose W's "comprehensive reform".
Which is it?
Many families are just a few paychecks away from being homeless...don't kid yourself.
And the failed bill's language wasn't blanket amnesty. But, the Democrat Party's will...and at this rate will include government housing.
And skeeter...think about this....
Because there's an election coming...numerous local governments are giving the appearance of going after the illegal. They will push just enough to trigger an economic problem and then offer up "It's the Economy, Stupid" once again.
I'm getting convinced that Jesus Christ Himself, heading the GOP ticket, would lose to Hillary Clinton.
And it's all because of YOU! ;^)
Sorry for going OT...was answering a misguided Freeper’s question.
Thats as far as I read.
In fact, they’re certain it’ll be worth less.
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What happened to the guys who said I was an idiot for saying that no new REAL wealth is created in the world just because a house appraises for a lot more money than it did last year. I wonder if they believe that REAL wealth has been lost from the world when it appraises for a lot less than it did last year. Personally I don’t believe the actual REAL wealth changes in either case.
The walked with over $200k in cash.
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Several years ago, before the bankruptcy laws were changed, a man I trust who works for the school system here told me of a school principal and his wife who did the same thing. They took out the maximum loan on the house, bought a new Mercedes with borrowed money, maxed out all their credit cards for cash and hid the cash. He said that when they filed for bankruptcy the judge said that the house could not be taken because they had to have a place to live, the car could not be taken because they were still working and had to have transportation to work and there was nothing else to take.
In a perfect world whomever invented the zero down loan would be doing 20 to life right now. I can't imagine a more stupid idea.
I’ve said it many times, its going to get worse long before it gets better.. we are only seeing the very tip of the iceburg on this...
The scale and impact of the housing collapse is going to be much larger than anything we’ve seen since the great depression... the S&L collapse is a drop in the bucket compared to what this will wind up being.
Hopefully it will deflate slow enough that an all out depression does not occur, if however it deflates rapidly, its going to get VERY VERY ugly.
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Almost the same words were spoken to me more than a year ago by a truck driver. The difference was that he used no ifs, ands or buts, he was convinced that it will be worse than the great depression with no room for doubt. Of course he was just a truck driver and couldn’t possibly know anything, could he?
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