Article

2009-05-28 Economy

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Posted by GolfBravoUSMC 2009-05-28 11:10|| || Front Page|| [3 views ] Top

#1 2/3 of foreclosures are homes owned by "real estate professionals" -- i.e. your friendly neighborhood agent who was buying houses to flip.

In other news, efforts by the gummint to "stabilize" home prices at their current inflated levels will inevitably lead to more foreclosures for the same reason that an artificially high minimum wage leads to unemployment.

Posted by Iblis 2009-05-28 13:09|| 2009-05-28 13:09|| Front Page Top

#2 This current peak in delinquencies was predicted a couple of years ago. There is another one predicted to max out in about 12 months. The government's stated policy of keeping house prices elevated is stupid and counterproductive. House prices need to fall hard so that people can truly affordd them.

Posted by Anguper Hupomosing9418 2009-05-28 13:22|| 2009-05-28 13:22|| Front Page Top

#3 2/3 of foreclosures are homes owned by "real estate professionals"

I had a hunch about that; do you have a a link to that data?

Posted by Grenter, Protector of the Geats 2009-05-28 13:47|| 2009-05-28 13:47|| Front Page Top

#4 That is heresy that you are speaking, Anguper.
Nevermind that home prices up until last year were inflated way beyond the point where anybody could afford them without a subprime mortgage. But, exactly opposite from their stated purpose of making homes more affordable, the subprime mortgages allowed people to buy over their heads thereby causing even more inflation. It's funny to remember how all the politicians and developers used to speak about the need for affordable housing but now that housing is becoming just a bit more affordable there is all this wailing and gnashing of the teeth. It was all a lie. But all that money had to go somewhere. When the banks made those loans, somebody got the money. Somebody has to be sitting pretty now. I wonder who.

Posted by Ebbang Uluque6305 2009-05-28 13:56|| 2009-05-28 13:56|| Front Page Top

#5 I had a hunch about that; do you have a a link to that data?

Sorry, no. The company which did the study does not want to publish these findings.

Posted by Iblis 2009-05-28 13:59|| 2009-05-28 13:59|| Front Page Top

#6 Just read in Bloomberg that for the first time since the crisis began prime borrowers represent the majority of foreclosures. That's quite a bit more disturbing than the subprime crowd defaulting. Strange things are afoot, maybe the prime borrowers are just walking away from upside down houses. I dunno.

Posted by bigjim-ca 2009-05-28 14:03|| 2009-05-28 14:03|| Front Page Top

#7 maybe the prime borrowers are just walking away from upside down houses.

I've heard of it happening, but only "friend-of-a-friend" type stuff. No one I know personally is admitting to doing that.

Posted by Grenter, Protector of the Geats 2009-05-28 14:26|| 2009-05-28 14:26|| Front Page Top

#8 "Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were in the foreclosure process."

That means that mortgage rates SHOULD be base + 600 base points!

or about 7% to you.

Posted by Bright Pebbles 2009-05-28 15:09|| 2009-05-28 15:09|| Front Page Top

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