As widespread and difficult as the recession has become, it’s easy to forget it all began with a housing crisis. Not only is that crisis still ongoing, it still threatens the stability of our economy. The Obama Administration is expected within the next few weeks to announce an initiative of $50 billion or more to [...]
Liquidity Crisis 2.0 is right around the corner. From WSJ: Nearly $750 billion of option adjustable-rate mortgages, or option ARMs, were issued from 2004 to 2007, according to Inside Mortgage Finance … Rising delinquencies are creating fresh challenges for companies such as Bank of America Corp., J.P. Morgan Chase & Co. and Wells Fargo & [...]
Looks like the cramdown provisions will be taken out of the stimulus bill, but this is frankly puzzling to me. Because Americans need to have mechanisms to renegotiate the values of their homes, and thus their mortgages. And every single person I’ve read on this subject has said that this will result in fewer foreclosures [...]
And it’s set to get worst before it gets better. From WSJ: WASHINGTON — More than 2.3 million American homeowners faced foreclosure proceedings last year, an 81% increase from 2007, with the worst yet to come as consumers grapple with layoffs, shrinking investment portfolios and falling home prices. Nationwide, more than 860,000 properties were actually [...]
This is a pretty big reversal, but I can understand why the big banks are starting to figure out that helping people adjust their debt is preferable to foreclosure. From CNBC: Until now, banks have been ardently opposed to the proposal, which key Democratic lawmakers hope to attach to President-elect Obama’s economic stimulus legislation. The [...]
Interest rates are at historical lows so many homeowners are calling banks and trying to get in on the action. Only problem? Housing prices have fallen so much so that now people owe more on their homes than they’re worth…making refinancing an impossibility. From Miami Herald… In South Florida, four in 10 homeowners who bought [...]
The economy apparently doesn’t realize this is a season of giving. The latest data present us with two major Grinches. 1) the 0.5% GDP decline in the third quarter has been confirmed and some expect as much as a 6.0% GDP decline in the fourth quarter. 2) Median home prices have suffered the worst decline [...]
The subprime mess was just the beginning. Because this time it’s not the low income mortgages. This is truly frightening stuff folks. I can’t help but think it’s going to get REALLY bad before it gets better. Tweet
As we all know, no sector of the economy has been hit by the recession as hard as the housing market. Now, new numbers indicate that American home values have lost $2 trillion in value during the first three quarters of 2008. Around 11.4 million homeowners are now “underwater†on their homes, owing more than [...]
From Reuters: With a pretty red-brick downtown lined with stores, good schools and a railway line to nearby Chicago, Hinsdale has been popular among wealthy doctors, lawyers and executives. It has also seen a 37 percent jump in foreclosure filings this year, according to research firm RealtyTrac, and local data shows the average home sale [...]
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