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The Great Loan Blog
A spirited discussion of real estate, the mortgage business and the economy.

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Articles: 1, 2, 3, 4, 5, 6

Articles

Ticking Time Bombs?
2007-04-20 06:27:00
As you can see the last part of the real estate boom was fueled by the riskiest credits. They were late to the party and many of these folks are already upside down on their houses. It won't take much to make them think about turning in the keys. Their payments are adjusting higher, their income is stagnant and their dream of homeownership is becoming a nightmare. Many will walk away.Mortgage Insider dishes it straight on housing and the mortgage market.
More About: Time , Time Bomb , Tick , Bombs

Heat Map of the Mortgage Meltdown
2007-04-20 06:20:00
This is an interesting map. You can see the once hot real estate markets that are facing large increase in late payments. The exception would be La. which is a mess following Katrina and the lack of flood insurance which has caused people to abandon properties. Notice the huge increase in the Inland Empire and Las Vegas. These were the hottest markets in 04-06. These markets have a huge percentage of subprime mortgages that are adjusting.Mort gage Insider dishes it straight on housing and the mortgage market.
More About: Heat

Housing: Inside the eye of the storm.
2007-04-17 20:08:00
I present for your viewing pleasure an insiders view of a presentation I attended. Home values in the middle class segment of the market deflate, foreclosures increase monthly, consumer spending slows down and the economy faces stagflation. That's just my take. But your smart, you do the math.Notice the amount of subprime loans that are adjusting over the next two years. The first adjustment is 2% above their current rate. And up to 2% every 6 months until the cap of 9.95% is reached.The riskiest borrowers became a bigger portion of the purchase market.Having trouble driving volume and qualifying people. The industry pushes and the client demands very aggressive mortgages that could well be a ticking time bomb for millions of families.Here you can see the hot areas of the country were fueled by the most dangerous loan products. How else would people be able to chase inflated home values and take on enormous mortgages if not for creative financing? Afterall, average middle class inc...
More About: Storm , Housing , Inside , The Eye

Interesting Graph
2007-04-14 04:49:00
Mortgage Insider dishes it straight on housing and the mortgage market.
More About: Interesting , Graph , Eres

New Home Slump May Last Till 2011
2007-04-13 20:21:00
The new home market may not return to normal until 2011, a top housing economist has told a meeting of multifamily builders and developers in Hollywood, Fla. David Seiders, chief economist of the National Association of Home Builders, said it will be three or four years before the oversupply of finished but unsold houses is worked off and housing starts move back up to the 1.8-1.9 million-units-a-year trend line. The unsold inventory will be a "pretty heavy drag" on production, he said at the NAHB's Multifamily Pillars of the Industry Conference. As a result, he added, prices will continue to fall. "There's no question there is an oversupply of housing and that homebuyers know it," Mr. Seiders said. "So they are just waiting, and builders have no choice but to cut prices on a cumulative basis." Mr. Seiders told the conference that while the most recent data indicate that the inventory of existing condominiums has fallen, the situation is going to get worse. That sentiment was also...
More About: Slump , Lump

Real estate short sale: More tips to stop foreclosure
2007-04-04 08:39:00
There are some helpful tips today in the Orange County Register for homeowners who are searching for ways to catch up on their mortgage payments and to avoid foreclosure.Here’s the quick list:Talk to your lender as soon as possibleGet financial counselingConsider selling before foreclosure is finalThe overriding theme of the article, which was written with the help of industry experts, is to act fast.We couldn’t agree more — the quicker a distressed homeowner reaches out for assistance, the more options he or she will have from which to choose.And, if for some reason a resolution cannot be agreed upon to save the home, at least these homeowners will have more time to put their properties on the market with the hopes that buyers come along to bail them out.Filing for bankruptcy is the absolute last option, as well as one of the worst.Consider this:“Filing for bankruptcy isn’t a good option. Bankruptcy will not only ruin your credit but, depending on whether you file Chapter...
More About: Estate , Real Estate , Tips , Sale , Foreclosure

Consumer Slow Down?
2007-03-28 01:08:00
Consumers Clench Their WalletsWorries over mortgages and higher gas prices are starting to show up in their spending. And from Tiffany's to Wal-Mart, retailers are feeling the pinchby Pallavi GogoiBW ExclusivesAt first blush, it's easy to overlook the lackluster results posted by luxury jeweler Tiffany & Co. (TIF)—flat income and 15% sales growth, the stuff of a tepid quarter at a retailer known for its affluent and loyal clientele. Yet a closer examination of Tiffany's performance offers an interesting peek into how the folks who shop there—a broader demographic than many people realize—are starting to behave amid new economic uncertainties.In fact, recent earnings and sales numbers released by Tiffany and other stores, such as J.C. Penney (JCP) and Macy's parent Federated Department Stores (FD), offer signs that the middle class is starting to show spending restraint. Climbing gasoline prices are already hurting lower-income consumers, who have responded by curtailing th...
More About: Consumer , Slow , Cons

Foreclosures Continue to Climb
2007-03-27 20:02:00
The number of national foreclosure filings was up 4% in February as Nevada reported the highest state foreclosure rate for the second month in a row with a 24% monthly increase from January, according to RealtyTrac.A total of 130,786 foreclosure filings were reported during the month, down 4% from January’s revised total but still up 12% from February 2006. The national foreclosure rate stood at one foreclosure filing for every 884 U.S. households in February, according to the foreclosure tracking company.RealtyTrac considers default notices, auction sale notices and bank repossessions as foreclosure filings."Based on our numbers for the first two months of 2007, foreclosure activity is running at a rate that would project to a 33 percent increase over 2006," said RealtyTrac CEO James J. Saccacio."It appears that as subprime and FHA loans default at higher than anticipated rates, and lenders tighten their underwriting standards, we're going to continue to see a spike in the numbe...
More About: Foreclosures , Climb , Fore , Conti , Limb

Pay my closing costs.
2007-03-27 19:56:00
With the real estate slowdown coming into full effect and unsold homes amassing into glutted inventories across the nation, a new survey asked homebuyers what sort of incentives would make the sale. A free vacation? Free appliances? The answer came back loud and clear: pay my closing costs.Given a number of choices between various incentives commonly being offered these days, 77% of respondents chose “closing costs paid.”At a very distant second was “free upgrades,” with 9% of the vote, followed by “free property inspection” with 6% of responses. The results of the national survey, conducted by HouseHunt, Inc., may not be entirely surprising. Other surveys found that the closing process is a predominant source of anxiety for many consumers, who are often afraid of new fees springing up suddenly.Michael Bearden, president and CEO of HouseHunt, Inc., sees a more practical reason why the responses were so one-sided.“Not surprising, this would represent a bottom-line savin...
More About: Costs

New Home Inventory Up Despite Low Rates
2007-03-27 19:49:00
Total New Home Inventory : 546,000 availableOne Month Change: Up 11.0% One Year Change: Up 26.6% Supply at Current Sales Pace: 8.1 months Source: U.S. Commerce Department Mortgage Insider dishes it straight on housing and the mortgage market.
More About: Rates , Rate , Tory

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