Posted on 03/09/2006 4:23:09 PM PST by ex-Texan
Risky borrowing is catching up with a number of homeowners across the U.S. Foreclosures rose 45% in January compared to a year ago, and experts only expect the pace to accelerate.
The number of homes entering some stage of foreclosure - increased 45% in January from the same period a year earlier * * * Job losses in some regions were to blame, but so, too, were risky borrowing practices that left homeowners little wiggle room on their mortgage payments. * * * many economists and industry observers expect the pace of foreclosures to accelerate this year.
* * * The areas of the country with the highest foreclosure rates on a per capita basis were Georgia, Nevada and Colorado.* * * The states with the largest total number of foreclosures were Texas, with 14,669 foreclosures; Florida, with 10,334; and California, with 9,354. * * *
In the last few years, many buyers took out interest-only, variable-rate loans, and in some cases put no money down to afford a house * * * He estimates one out of every three loans issued in 2005 was an adjustable rate mortgage. * * *
In the months ahead, analysts expect delinquencies to rise, putting a greater number of these foreclosures on the market for buyers to choose from. That’s bad news for owners who live in these areas, analysts say, because rising foreclosure rates typically mean falling home prices.
But it’s good news for buyers looking for some relief from the high prices of the last several years. In addition to driving neighboring home values down, foreclosures themselves tend to sell at a discount to the market * * *
(Excerpt) Read more at realestate.msn.com ...
In local areas, you are wrong. The southern CA market saw a significant correction during the late 80s - one guy I knew rented his house out for 15 years before it was back to its purchase price.
And in England, at one point homes corrected to about half their sold value. I think they have now gone back up, but in local areas corrections can be severe and last 10+ years.
If I didn't believe what I post, I wouldn't post it. Neither would I, unlike YOU, post about something I did not understand.
Prices vary, from not only region to region, but from neighborhood to neighborhood. This has ALWAYS been true. What seems cheap in one area, people in another might find jaw dropping. When you make your overly broad, wide, sweeping statements, you just come off sounding like a raving lunatic; or worse. And you have NO historical sense, either.
Wait a minute...this can't be right...the stock market is up and the economy is strong...unemployement is down...
Not possible...
But wait...can you hear that sucking sound?...thats the sound of 401k's getting ready to unwind, the stock market about to fall off a cliff and oil going to 100 while the trade deficit, and national debt sky rocket...
Lets outsource some more manufacturing jobs so we can hire more burrito rollers and burger flippers and attornys to sue thier boss...
Would you like to make another stab it? LOL
You sound like quite the authority here. Must be some crystal ball you have. All I know is that after over 30 years in the real estate business I wouldn't predict what will happen.....except that over time real estate goes up.
My comment: And in England, at one point homes corrected to about half their sold value.
You said prices NEVER go down below where it was prior to the bubble - and in a sense, that may be true. It would depend on where you define the start of the bubble. I've seen prices slightly below what I would call the start of the bubble.
It also is irrelevant. The point is not that it is OK to buy before the bubble starts, but that you can be screwed if you buy during the bubble. And you are double screwed if you buy during a bubble with little down. I have seen a number of times where someone owed almost twice the current value of their house.
Real estate goes up, unless an entire town becomes deserted, which USED TO HAPPEN, but isn't what is being now discussed.
A Ponzi scheme driven by easy credit. Anybody qualifies today. The net effect on the U.S. coming. It ain't gonna be pretty. People do not even have to prove their income to obtain loans from some of these predatory lenders. Can you believe someone is asking $ 740,000 for a tiny broken down pos house in Culver City? Yes? No? Huh?
And FYI....the stock market is NOT about to "fall off a cliff", which means that NOBODY's 401K is about to go PFFFFFFFFFFFFFFFT.
Also, unlike YOU, I also know that real estate prices have less than NOTHING to do with driving our economy.
You keep putting up these threads and/or posting the same replies to lots of threads, but what you say is NOT factual; NOT TRUE!
ARE YOU A REALTOR?
Explain HOW you are going to buy up foreclosures and them turn right around and sell HIGH, when the scenario you keep laying out, negates you EVER doing such a thing.
>>>TX always has bargins.<<<
I think so....just sold my house. We close on the 17th.
I paid 127 for it 10 years ago. Just sold for 239.
Here it is...w/several pics.
http://www.joanneenglish.com/listings/51234.htm
Actually, this is good news for Texas homeowners bitching about how much they pay in property taxes. If their homes are devalued, it will take some time for the tax increases to catch up.
Explain, in DETAIL, step by step, what a PONZI SCHEME is. Do it NOW and DO NOT look it up!
ZZZZZZzzzzzzzzz
She [nopardons] runs around here like some unofficial traffic cop...bereft of facts...
It is exactly as you state it...a Ponzi Scheme...and the biggest fraud is Fannie Mae...
The last two years of this economy have been driven by loose credit, as savings have gone negative...and now that rates are on the rise and the FED can do nothing about it...this debt driven monster is going to unwind and the likes of nopardons will be shrill with exasperation blaming everything and everybody but the culprits...Uncle GreenSpan and Helicopter Ben...and the greed generation who wants it all now and wants to leave nothing behind...
Come on, at least tell us all what "scheme" PONZI is known for.
You also are an hysteric, who keeps making doom&gloom claims based on nothing! You short on everything ? ;^)
You need to relax, my friend.
I gave him a link to a very popular blogging site. The guy that runs the site is an investment analyst. Told him to argue with the expert.
That jerk apparently did not even take a peek at the site. It goes into extreme detail about why inflated real estate bubble is nothing but a huge Ponzi Scheme.
I warned him not to post or FRmail me ever again.
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