"Ghost Inventory"

[Truthmatters]

Flood of foreclosures: It's worse than you think - Jan. 23, 2009

Its about to get much worse.

 

[editec]

It's a freakin' nightmare for all of us, even if we can afford our mortgages.

I'm informed that few people are actually getting much help rewriting those mortgages such that they can afford to stay in their homes.

The bankers aren't willing, I guess, to take less profit on the money they loaned (but did not have to begin with).

And then, as many of you have pointed out, a lot of people who invested nothing to get into those homes have no vested interest in working with those banks, either, do they?

They can rent much more cheaply than the cost of thei mortgage, and since they lose little by moving, I expect that a lot of them are just walking away from those overpriced homes.

 

[catzmeow]

This is an interesting, related article that discusses the poor condition of many homes in foreclosure right now:

Houses in subprime shape lead price charge down - Aug. 22, 2008

 

[auditor0007]

And it's even worse than that because many homes that were financed with ARM's have yet to hit. Many of these ARM's are just beginning to see their rates adjusted, and this is going to force even more foreclosures upon us.

Besides blaming politicians and greedy bankers, we can also blame greedy home builders and greedy people in general. If you look at the housing market over the last decade and even throughout the 90's everyone wanted a huge house. 1500 to 2000 square foot homes weren't enough. They had to be 3000 to 4000 square feet. This is what people wanted whether they could truly afford it or not. Now we're finding out that most can't afford it.

It's going to take a long time until this turns around, and as this recession deepens, we're going to see an awful lot of these big homes sitting vacant.

 

[Care4all]

i would bet they can afford their homes NOW, at today's retail price, now that the value of their homes have fallen the 30%-40% FROM THE BUBBLE'S high...

 

[auditor0007]

This is an interesting, related article that discusses the poor condition of many homes in foreclosure right now:

Houses in subprime shape lead price charge down - Aug. 22, 2008

The article makes another good point, albeit indirectly. It says that once home prices do stabalize, it's going to take a natural population increase to absorb all of these homes before the market actually begins to recover.

In other words, we overbuilt. There were just too many homes on the market to begin with.

 

[indago]

Banks are even foreclosing on those who are keeping up their mortgage payments.

Journalist John Collins Rudolf wrote for the New York Times 19 January 2009:
------------------------------------------------------------------------------------------------
Banks Foreclose on Builders With Perfect Records — TEMPE, Ariz. — Dave Brown, one of this city's best-known home builders, had kept his head above water through the housing downturn, not missing a single interest payment on his loans.

So he was confounded a few months back when one of his banks, spooked by the decline in his company's revenue, suddenly demanded millions of dollars in additional collateral to continue carrying loans on his projects.

He was unable to come up with the money, and in October, JPMorgan Chase foreclosed on five of his developments. Shortly thereafter, Brown Family Communities, 33 years in the business, decided to shut its doors.

"They treated me like a deadbeat who missed his car payment," said an embittered Mr. Brown, 76. "They wanted their money now."
------------------------------------------------------------------------------------------------

This just compounds the devastation.

 

[Care4all]

This is an interesting, related article that discusses the poor condition of many homes in foreclosure right now:

Houses in subprime shape lead price charge down - Aug. 22, 2008

The article makes another good point, albeit indirectly. It says that once home prices do stabalize, it's going to take a natural population increase to absorb all of these homes before the market actually begins to recover.

In other words, we overbuilt. There were just too many homes on the market to begin with.

Well, there were enough people that bought these homes initially....only at too high of a price and at risky mortgage terms...

the best thing that could happen is KEEPING these people in theire homes...if they go in to foreclosure, that just puts more homes, empty, on the market...and the bank will have to sell it below what they mortgaged it for anyway....

Why, they would not just refinance to the people in the homes, at the present value of their home, is uncomprehendable to me.... at least they would be getting some money back, immediately, through their continued monthly payment, albeit lower, it is better than having the foreclosed home sitting on the market for a year or two...and then sell it below what you could have refinanced the present owners at....

 

[editec]

The mistakes made have many masters, I fear.

The FED, the banks, the finance companies, the very system as devised which encouraged foolish lending practices and fools to buy more than they can afford, too.

I'd been saying for a mighty long time (on cybersoapbox) that the price of real estate was wildly out of line with the average income.

Of course as the prices continued to escalate (thansk to cheap money) beyond any sustainable price, I continued to look like a damned fool.

WEll I was right, of course, but I'd have been happier if I'd been wrong.

 

[Missourian]

The mistakes made have many masters, I fear.

The FED, the banks, the finance companies, the very system as devised which encouraged foolish lending practices and fools to buy more than they can afford, too.

Don't forget the people who bought the houses they couldn't afford using morgages they didn't understand. Let's not let them off the hook. When push comes to shove, the buyers are responsible for knowing what they can and can't afford.

 

[Luissa]

You guys see where Hyandai has a return policy now, if you loose your job within one year and cannot make payments you can bring the car back. Not sure how it works, just saw a commercial!

 

[editec]

The mistakes made have many masters, I fear.

The FED, the banks, the finance companies, the very system as devised which encouraged foolish lending practices and fools to buy more than they can afford, too.

Don't forget the people who bought the houses they couldn't afford using morgages they didn't understand. Let's not let them off the hook. When push comes to shove, the buyers are responsible for knowing what they can and can't afford.

I didn't forget them, Missouri.

fools to buy more than they can afford, too

The qeustion is how many of them are there compared to people who were not being cynical and foolish?

For MOST people, even people who overbought, losing your home is a very tramatic experience and I frankly doubt that as many people bought those homes thinking they were just going to give them up, as you appear to think there are.

Hell, with unemployment climbing like it has of late, I have very little doubt that MOST people who are in forecloseure are victims of the economy as much as their own foolishness.

 

[Angel Heart]

I'm praying for a major price dive in the Portland Metro. The median housing price passed median income can afford 2 years ago.

 

[Missourian]

I didn't forget them, Missouri.

fools to buy more than they can afford, too

Sorry, I missed that .

The question is how many of them are there compared to people who were not being cynical and foolish?

For MOST people, even people who overbought, losing your home is a very tramatic experience and I frankly doubt that as many people bought those homes thinking they were just going to give them up, as you appear to think there are.

Hell, with unemployment climbing like it has of late, I have very little doubt that MOST people who are in forecloseure are victims of the economy as much as their own foolishness.

I sympathize with people who are losing their jobs today because they lost their job or some similar catastrophic development.

Heck, I sympathize with anyone who is losing their home.

But those who have not incured such a misfortune fall into the foolish catagory IMO.

 

[RodISHI]

Banks are even foreclosing on those who are keeping up their mortgage payments.

Journalist John Collins Rudolf wrote for the New York Times 19 January 2009:
------------------------------------------------------------------------------------------------
Banks Foreclose on Builders With Perfect Records — TEMPE, Ariz. — Dave Brown, one of this city's best-known home builders, had kept his head above water through the housing downturn, not missing a single interest payment on his loans.

So he was confounded a few months back when one of his banks, spooked by the decline in his company's revenue, suddenly demanded millions of dollars in additional collateral to continue carrying loans on his projects.

He was unable to come up with the money, and in October, JPMorgan Chase foreclosed on five of his developments. Shortly thereafter, Brown Family Communities, 33 years in the business, decided to shut its doors.

"They treated me like a deadbeat who missed his car payment," said an embittered Mr. Brown, 76. "They wanted their money now."
------------------------------------------------------------------------------------------------

This just compounds the devastation.

Maybe they are expecting an upswing and good profits.

Shit like this has been going on for years.

Foreclose, spin it into a sub, write it out, sell it and tell the investors they took a hit. Walla property and investment moneys come out in favor of the bank/lender......

 

[editec]

Shit like this has been going on for years.

WEll...at least bankers have stopped tying down damsels (like Nel) to the railroad tracks.

God I used to hate that.

Hitch up the horse, rush down to the tracks, untie Nel, the train was ALWAYS rushing down on us...it was a real pain in the ass.

 

[Care4all]

I didn't forget them, Missouri.

fools to buy more than they can afford, too

Sorry, I missed that .

The question is how many of them are there compared to people who were not being cynical and foolish?

For MOST people, even people who overbought, losing your home is a very tramatic experience and I frankly doubt that as many people bought those homes thinking they were just going to give them up, as you appear to think there are.

Hell, with unemployment climbing like it has of late, I have very little doubt that MOST people who are in forecloseure are victims of the economy as much as their own foolishness.

I sympathize with people who are losing their jobs today because they lost their job or some similar catastrophic development.

Heck, I sympathize with anyone who is losing their home.

But those who have not incured such a misfortune fall into the foolish catagory IMO.

huh? explain your last line, pretty please? (those who have not lost their jobs or homes are the foolish ones? huh?)

 

[RodISHI]

Shit like this has been going on for years.

WEll...at least bankers have stopped tying down damsels (like Nel) to the railroad tracks.

God I used to hate that.

Hitch up the horse, rush down to the tracks, untie Nel, the train was ALWAYS rushing down on us...it was a real pain in the ass.

Too funny.


It is a serious problem ed. Switch and bait with investor money leaving them cleaned of cash reserves while killing small businesses and tossing families out in the streets.

All the while trying to extort and hold hostage the people who put there money in trust with these thugs.

 

[Missourian]

huh? explain your last line, pretty please? (those who have not lost their jobs or homes are the foolish ones? huh?)

Didn't suffer misfortune but still lost a house.

Sorry that it was unclear.

 

[Missourian]

In retrospect 'foolish' is far too harsh a word. Instead let's say they made a costly mistake.