Foreclosure! The New Reality Show!
Ok, we've Survived, lived with Big Brother, Danced and Skated With The Stars, discovered that America's Got Talent, worshiped Idols, and now we're ready to discover that along with talent, America, You've Got Debt!!
Seems that ABC is looking for some unlucky homeowners, or rather home borrowers. You know the ones, the ones with the suicide loans.
Here's part of the come on.
Did you get a teaser loan or an adjustable rate loan and as the payments have increased, you find it harder to pay the bill? Have you tried to refinance your loan and the bank turned you down because your loan is larger than the value of the home or did the bank offer you an even higher interest rate? Are you faced with selling your home or worse, losing it to foreclosure?
You can imagine where it goes from there, Cynthia McFadden or John Quinones on the couch looking concerned, eating coffee cake and tsk tsking.
Wonder how many will take them up on their offer? There shouldn't be any shortage of candidates according to this headline.
According to the article :
In another sign that the housing market is taking a major tumble, Americans across the country are getting foreclosure notices at a record pace.
New data released this afternoon indicates that one in every 656 homes in the United States went into foreclosure during May.
That's a lot of people but only the tip of the melting iceberg.
That is the highest figure they have ever recorded in their monthly report and is 90 percent higher than the numbers from a year ago.
"Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year," said James Saccacio, CEO of RealtyTrac, in a release accompanying the data.
Of course all the experts are saying , "they predicted this", yada yada yada. Sure. I guess that's why so many lenders hit the deep six.
Six of the nation's largest lenders who specialized in these high-risk borrowers filed for bankruptcy earlier this year after investors lost confidence in the $600 billion subprime market when default rates started to rise.
ABC shouldn't have annnnnnny problems finding subjects for their show. When it comes to hitting the financial wall, America's Got Talent!!
Labels: foreclosure, subprime loans
posted by moonvalley @ 6:04 PM
7 Comments:
All this from the first wave of resets,with a "strong" economy and historically low rates.rates are spiking for high quality firsts,at or near 7%(as someone who clearly recalls 20% down,18% firsts it feels odd to call 7% a "spike")I heard an ad on the radio by Fremont Bank today offering an ARM with a lifetime cap of 18%.2 years ago it was 10%.since ARMS are historically 5-7 year loans(people sell or refi) this is a clear statement of where the risk management team thinks rates are going.I had someone tell me recently that a 10% rate would kill the market,and i disagree.I expect much higher rates,but this market is dying at 7%.....IT IS THE PRICES! NOT THE RATES!! that said the quicker rates hit 12%-18% the better.let us get through this end of the cycle in 5-6 years,and not 18 years like Japan.
yes, back in the early 80's we bought a house for about 30% down and for that we got to assume the sellers "great" 11% interest rate, times they do change.
You are so right - now "they" keep saying, oh we predicted it all along. Thank goodness for all the bloggers who have chronicled the truth of this real estate debacle. We ain't seen nothin' yet!
I'm in a neighborhood in So Cal that is still "going strong" - so my friends are dubious when I say, just wait, no way that glorified shack is worth $900 a square foot in a few years(what deluded person bought that just one month ago at that price!).
Frankly, if you can't save enough money to put a downpayment on a house, you probably aren't financially prepared (or responsible enough) to own one.
I live in a "million dollar" home. I rent it. It's ok, especially since the rent is a steal - about a third of what the mortgage, insurance, and taxes would cost me if I bought it. I save money every month for the down payment when the market normalizes. Who wants to live with suffocating debt!
Thanks for your blog - it's on my regular reading circuit :-)
smashmonster,
I agree on not wanting to live with "suffocating debt". A lot of people have probably become slaves to their homes. Homeowners? Nah, it's the other way around, the homes are "Peopleowners".
Speaking of foreclosure.....
I am amazed that the local SF TV news shows are actually covering this.
For years, the reports have been all about the skyrocketing prices, usually with a slant of "get in now, before it's too late".
Somehow, now they are now reporting the results of all of this hype.
I guess bad news is the best news.
As they say, "If it bleeds, it leads" . I guess that applies to red ink too.
There's a seismic shift in the MSM coverage of this debacle. Less sugar coating these days. REIC must see lean times ahead and are trying to get the reality to sink into sellers' heads. Lower, lower prices are the only thing that will "rebound" the market, and I think we're years away from that.
For the market to be tanking when fixed rates are still below 7% shows just how drunk people got on cheap money and how disconnected home prices are from income.
I'd love to hear what y'all think we're in store for regarding price declines over the next 2 to 3 years. 15%? More than 20%?
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