Posted on 04/29/2008 5:38:10 AM PDT by RSmithOpt
Cannot redistribute...must go to link.
(Excerpt) Read more at wral.com ...
Has nothing to do with the economy. It’s people’s consumer credit catching up with them.
For those who like meaningful numbers, “Owners of some 3,570 properties” in Raleigh-Cary have gotten “some sort of foreclosure notification”
Still not good, I guess, but it may provide some perspective.
Total population of Wake county that encompasses Raleigh and Cary is 786,522 estimated in 2006. I estimate the total number of single family homes to be approx. 280,000.
IOW, the economy is shrinking and the sub-prime mess / housing bust has not bottomed out.
With several factors causing the surge, you are correct in that the most significant is people living beyond their means.
Maybe not even that. How many of those properties are owner-occupied residences, as opposed to investment or speculative purchases?
The information in this report means very, very little ... except that we’re all supposed to believe the sky is falling and vote Democrat.
A recession can ONLY be established by numbers from the government. Recessions have NOTHING to do with public opinion on how the economy is doing or will do in the future.
And out of 280,000, there are about 800 more foreclosures now than there were a year ago. This IS NOT a disaster.
2006 Wake Co. Housing units:325,613
From year 2000: 65.9% of that 325,613 is home ownership where the owner lives in the dwelling
That would be 214, 579 owned homes.
State & County QuickFacts - US Census Bureau
3,570/214579 = 1.66% of the total number of homes are in foreclosure
Of that, it is not known exactly how many are investment properties.
Figuring the median price approximately $240,000 that would be $856,800,000 in property currently in some type of foreclosure.
Kinda not too good for the local economy.
From what I gather, this does not include surrounding communities, Knightdale, Wake Forest, Garner, Apex, Zebulon, Holly Springs, or Fuquay-Varina.
Suze Orman would be so proud! (you’re dead on!)
Speculators are buying these foreclosures at 60-65% of their worth if updated and rehabbed. They pump in 10-20% in new floors, paint, frilly trim, windows, kitchen, etc, then put them on the market at top dollar and make 20-30% profit on the sale.
The realtors, lenders, attorney’s are all still making money and the rehabbed homes are killing appreciation and demand of the surrounding homes that are in average condition and not updated to the hilt.
BTW, my co-worker just got in the mail yesterday an unsolicited package from Countrywide Mortgage' stating he could borrow over '$130K in equity in his home and no credit checks on the "Fast Track Approval" and they could have the money in his hands in 2 weeks.
Now, didn't Countrywide just go bellyup and is in the process of being bought out by BOA??
Tell me there ain't a Ponzi still working on this stuff.
I just closed out my (unused) Wells Fargo HELOC today. They weren’t the least bit happy about it. ;)
By the way, I just yesterday canceled my BP - Chase Visa gas card I never asked for with 23.4% APR for the second time after they sent me a bill for the $29.95 membership fee.
I canceled it before too in Nov. 3, 2007. I don't have the card...it's in little pieces in the landfill now
Guess they just like sending people bills.
DirecTV just lost a 12 year customer too last month, but, I still have my own equipment.
HELOC=Homeowner’s Equity Line of Credit....just a little slow.
Excerpt:
* * * About 2.2 million vacant homes were for sale in the first quarter, up from 2.1 million in the fourth quarter and about one million more than was typical before the housing bubble burst.Economists say the rising vacancies indicate that home prices won't stop falling and home builders can't ramp up construction until the glut of vacancies can be worked down.
"It's the worst piece of housing news that we've heard in the past couple of months," said Patrick Newport, U.S. economist at Global Insight. "It means home prices will continue to drop at least for the remainder of the year." * * *
The WSJ has it wrong. Home prices are down nearly 50% from the highs set back in 2005. Prices will continue to fall through all of 2009 and 2010.
Regardless of what Bernanke thinks his plan to save his Wall Street cronies will backfire. The big boys will get their 'Golden Parachutes' worth millions in retirement compensation. But most of us will be forced to live on stripped down pensions and/or 401(k) programs will lose value over time.
The Fed has raped the USD and stolen billions from people who save and invest hard earned money. In the meantime, corporate medical plans are amended ruthlessly for retired workers. Group insurance costs for a husband and wife can easily run over $ 800/ month. If you are one of the unlucky who cannot afford medical insurance, you will risk being wiped out by catastrophic medical expenses. Which, in turn, will set you up to lose your home via foreclosure in a few years. Yada, yada, yada.
Want to learn more? Or, perhaps you just want to roll back under your blankets: Go back to sleep, dear sheeple. There is nothing to see here. Time to move on.
Seriously I am totally amazed at what is now happening in our country.
Around here, people think $400,000, 2000 sq ft, vinyl sided 2 story McMansions were a good investment. However, couples making $80000 gross between the 2 with 2 kids can't afford that.
You are right about our money being stolen.
Time to buy more ammo and a heavy safe.
Hold on for the rough ride and may God bless you and yours.
Oh, so this is who I’m reading, Mr what is a HELOC? Jeez. Of course I believe your prognostication on the entire economy! LOL!
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