New Mortgage Foreclosures Set Record

Yahoo ^ | 09/06/07 | Martin Crutsinger

[djf]

It’s not a lender or borrower black or white thing.

There’s plenty of culpability to go around.

[demshateGod]

“Yeah, it’s got NOTHING to do with people buying more house than they can afford.”

We did that. Had two incomes, bought a house, got pregnant, now one income. We never even thought about blaming the lender. We may have to foreclose but I don’t see how that’s the bank’s fault. Unless they got my wife pregnant but I’m pretty sure it was me.

[Lloyd227]

"There’s plenty of culpability to go around."

Anyone else here reminded of the so called "Savings & Loan Disaster" of the 80s? And I'm talking about the real Savings & Loan disaster, where Billions of deposits simply disappeared due to folding S&Ls.

This is an interesting (and quite effective) method of removing excess cash from the money supply. Great timing as well as that's exactly what needs to happen for the next couple of years as OPEC finally transitions to the Euro and as China "diversifies" it's holdings....

Just food for thought... you can take the tinfoil had off now, I'm done :-)

Cheers,
Lloyd

[hubbubhubbub]

All these people with ARM resets due have had ample time to convert to a fixed % mortgage. They still have time. why didn’t/don’t they?

[psjones]

We bought our current home over 4 years ago. With a 5%, 30 year fixed, 0 points and with rates nowhere to go but up, why even get an arm. I would that most people who got arms are those who couldn’t really afford the mortgage any other way, a recipe for disaster.

[ex-Texan]

U.S. Subprime Lenders' Financial Troubles -- A Fact Box

Condo Crisis Hits Northern Virginia: 10 Years of Inventory

Important Notice

CitiMortgage has identified certain markets with declining values that may require adjustments to LTV/CLTV/HCLTV financing limits. *

The maximum LTV/CLTV/HCLTV for the product, program, and/or documentation process chosen will be reduced by at least 5%.

We are currently not extending maximum financing on properties that are located in the counties listed below:

List is updated quarterly. Last updated July 3, 2007

________

* In other words, no more jumbo loans allowed for these areas. No more exotic mortgages. Watch these areas very carefully because inventory is very high and prices are falling rapidly.

[montag813]

Question: Why do ARMs continue to rise, while rates in general have come down quite a bit in the past 6 months?

Above: The yield on the 10-year Note

[Notary Sojac]

All these people with ARM resets due have had ample time to convert to a fixed % mortgage. They still have time. why didn’t/don’t they?

Because they bought the house with 100% or 100%+ financing and no lender will refinance for more than the house is worth.

Actually "bought the house" is almost a meaningless phrase when the buyer has no skin in the game.

Or, they refinanced their existing home to 100% or more of its value to buy bling-bling or make other dubious investments. This is what's behind the MSM sob stories about "Mrs. F. B. Sucker who is about to lose her family home of twenty years to an ARM reset". Again, no one will refinance for more than the house is worth, even if the borrower could otherwise make the payments on a fixed rate note.

Leverage is a centerfold beauty on the way up, but man, is she a harpy on the way down.

[Moonman62]

The yield on the 10 year correlates with fixed rate mortgages. ARMs correlate with shorter term yields which have been all over the place lately. Plus all the mortgage companies going out of business may have something to do with it too.

[Puppage]

people who got arms are those who couldn’t really afford the mortgage any other way

That's a very good point. If that's indeed the case, then they shouldn't have signed.

You can't save people from themselves, nor should we bail them out. They made a choice, it's America. They also have to LIVE with that choice.

What do I GET for buying a home within my means & paying my monthly mortgage?

[Notary Sojac]

What do I GET for buying a home within my means & paying my monthly mortgage?

Here. You get this nice bag. Hold onto it real tight now!

[Hydroshock]

Some will get the gold mine, we will get the shaft.

[art_rocks]

How many of these foreclosures are for 2nd/3rd homes and investment properties.

[art_rocks]

You know were all idiots. We should have been shorting the housing and mortgage company stocks.

Then we all could have been moving on up to the sky.

[FightThePower!]

“What happens if it goes to one out of five?”

It won’t, the Fed said the problem is contained so it is.

[Pelham]

The % of loans in California that are ARMs is 40%. Granted most aren’t subprime, but all can reset. The show is just getting underway.

[Pelham]

Homedebtors. Mortgage Owners.

“I see debt people.”

[Petronski]

You’re drooling.

[durasell]

THERE IS NO HOUSING BUBBLE!!!!

---

Well yeah, now there isn’t. Not anymore.

[garbanzo]

I were an a-hole I’d go and dig up all those old threads. And all those threads that said there wasn’t going to be a stock market correction this summer.