Now if you care to hear more about the supposed foreclosure tsunami Bloomberg has this.
The crash in U.S. home prices will probably resume because about 7 million properties that are likely to be seized by lenders have yet to hit the market, Amherst Securities Group LP analysts said.
The “huge shadow inventory,” reflecting mortgages already being foreclosed upon or now delinquent and likely to be, compares with 1.27 million in 2005, the analysts led by Laurie Goodman wrote today in a report. Assuming no other homes are on the market, it would take 1.35 years to sell the properties based on the current pace of existing-home sales, they said.
“The favorable seasonals will disappear over the coming months, and the reality of a 7 million-unit housing overhang is likely to set in,” they said.
The amount of pending foreclosed-home supply has been boosted by more borrowers going into default, fewer being able to catch up once they do, and longer time periods to seize properties because of issues such as loan-modification efforts and changes to state laws, the New York-based analysts wrote.
Now here's an interesting tidbit I found tonight,
There were 217,000 loans in July where the borrower hadn't made a payment in at least a year but the lender hadn't begun the foreclosure process. In other words, 17% of home mortgages that are at least 12 months overdue aren't in foreclosure, up from 8% a year earlier.
Now if 217,000 is only 17% of the loans that are at least a year delinquent, that means there are nearly 1.3 million loans that are at least a year behind on payments. 1.3 million families living the dream!
8 comments:
So what did Tom mean when he said it's costing the government around $40,000 per sale?
OMG, he mentioned the housing price uptick. It's totally a head-fake, and it's going down, down, down.
They figure the $8k credit is actually costing $46k. Mainly because most of those people would have bought anyway. The NAR estimates it generated an additional 350,000 sales. They took the total cost, divided my 350000 and it came out to $46k per. That's the primary reason most economist are dead set against the credit. It's a huge waste in most cases. If most of the people are going to buy anyway what is the point of giving them our tax dollars. How is that fair? I get nothing, most everyone else gets nothing, but those folks get $8k for doing something there were gonna do anyway.
is it good or bad?? considering this situation..
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commercial real estate
I think on this one I'm with the economists. It's a poor way of spending tax dollars. If it only generated an additional 350000 sales I would say it's a epic flop.
I think if people would get another year's time to protect there homes from foreclosure then this is wonderful news. Living in our own homes is everyone's dream.
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Spoken like a banker trying to avoid bankruptcy. Another year is not protecting their home from foreclosure in 95% of the cases. It's just delaying it another year. But that year might help the bank avoid folding. You and I both know this is all about the banks.
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