Foreclosures up 60% in February

Baa · Posted: Wed Mar 19, 2008 6:18 am Post subject: Foreclosures up 60% in February

http://money.cnn.com/2008/03/13/real_estate/foreclosures_feb/index.htm?postversion=2008031410

Petch · Posted: Wed Mar 19, 2008 8:14 am Post subject:

I am not surprise of it's coming.

Last couple years ago, It is very easy to get a loan.
Those who bought a property, they are not living up to the fundamental standard.
They either bought it for investment or move up to a better living.

That's why the house that my dad wanted to buy, the new owner
has no more money left to pay off the loan.

It is a situation of mis-calculated the income and expend.

SUNNY · Posted: Wed Mar 19, 2008 8:29 am Post subject:

IT IS WHAT IT IS!
_________________
God answer prayers in 3 ways:
He said yes and gives you what you want.
He said no and gives you something better.
He said wait and gives you the very best in His own time
http://www.facebook.com/profile.php?id=682417822

Baa · Posted: Tue Mar 25, 2008 6:34 am Post subject:

Home prices post another record decline
The residential real estate market continues to deteriorate in 2008, with 20 key markets reporting a 10.7% decline.

NEW YORK (CNNMoney.com) -- Residential real estate posted another record decline in January 2008, according to a survey released Tuesday.

The S&P Case/Shiller Home Price composite index of 20 key markets shows that home prices plunged 10.7% over the last 12 months, their lowest level since the index launched in 2000.

Of those 20 metro areas, 16 reported record low annual declines. Ten of those cities posting double digit declines through the 12 months that ended in January.

The survey's 10-City composite index fell 11.4% year-over-year, its steepest decline since its inception in 1987.

"Unfortunately it does not look like early 2008 is marking any turnaround in the housing market, after the declining year recorded throughout 2007," says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's.

Las Vegas and Miami reported the weakest markets in January, with each city posting an annual decline of 19.3%. Phoenix was the second worst with a decline of 18.2%.

Washington and Minneapolis also registered double digit declines in January.

Michael Strauss, chief economist at Commonfund, says that steep price declines are no surprise, given the number of homes on the market.

"When inventory is so high we're likely to see a situation where excessive inventory leads to a decline in prices," he said.

Cities like Las Vegas and Miami, where speculative buyers helped fuel the housing boom, are seeing sharp reversals.

"Some of the cities that soared the most are now retracing the most," according to Strauss. "Though it may be disappointing to some, from an economic stand point it makes a lot of sense."

The Case/Shiller indexes compare the sale prices of the exact same homes. The industry considers this survey to be among the most accurate snapshots of housing prices.

First Published: March 25, 2008: 9:27 AM EDT

Petch · Posted: Tue Mar 25, 2008 7:41 am Post subject:

Since the home price are declines, interest get lower, economy heading south, what is your recommendation?

Baa · Posted: Tue Mar 25, 2008 9:22 am Post subject:

As of a CPA and CFO for more than 10 years, I have the following recommendation:

At least wait till the end of this year.

2 Major Reasons:

1. Real estate is not Wall Street, you won't see it go up and down frequently. Even I optimistically assume the declining will be done in the first half of this year; the market will stay "flat" for a while.

Remember the last declining in LA/OC area in 1989-1994? It took almost another 6 years from 1995-1999 for rebounding.

2. This year's election will play a "Hugh" part of it, which party running the States will cause a direct impact to the policies and the market.

Hope it helps.

Petch · Posted: Wed Mar 26, 2008 7:52 am Post subject:

Thank you for your recommendation.
What goes up must come down. Smile

konoya · Joined: 06 Feb 2008 Posts: 4 Location: FL

Help me understand how any financial company will be okay? I am a
real estate licensee in Florida, not a stock trader. Foreclosures are
accelerating and we are running out of cash buyers. Rates are
relatively low, but financing is much harder to get. Flagler County,
Florida doubled in population between 2000 and 2005 and doubled in
price too. Now prices have fallen 30 to 50%. 50% of the homes being
sold today are SHORT SALES. Now the non-investor, PRIME MORTGAGE
HOLDERS are up-side down. Where does it stop?

It appears to be spreading across the country...not just California,
Nevada and Florida anymore. 19 of 20 cities had price decreases.
Foreclosures and Short Sales are "fashionable". It's water-cooler
talk. Hey, did you know Ed McMan is loosing his home?

I understand there was a sudden decline in Florida real estate values
in 1929...what happened in 1930?

Don't banks need to have 10% in equity on the balance sheets? Let's
do the math in my area of Florida. Average home price $200,000 (I
rounded down to make it easy)
Average 80% LTV = $160,000 Loan
30% decline in price. (I'm being VERY conservative here) = Present
Value of $140,000
That's a $20,000 LOSS plus court costs and liquidation fees.

So, they needed $16,000 on the books to hold a $160,000 mortgage and
they LOST $20,000.
I think it's more like $40,000 if I use real numbers and include court
costs. Am I wrong?

PLEASE stop the propaganda that it's only a SUB-PRIME problem - it's
NOT!
The government HOPE NOW program is coming to the rescue! No they are
NOT!
1.5 Million people "helped". Only 500,000 got their loans modified, 1
Million got their outstanding payments financed or added to the back
of their mortgage. THEY ARE JUST DELAYING THE PROBLEM.

Feel free to comment.

Petch · Posted: Wed Jun 18, 2008 9:59 am Post subject:

Very thoughtful analysist.

When market was blooming, many home owner cash out.
Some hit jackpot making some amount of money that they
could not have done so for a life time.