The story running in todays newspaper is only the beginning of the coming tsunami of foreclosures. This market will be flooded with bad loans and the morons who took out these loans. The Californian should have been running stories educating people on the home buying process instead of puff pieces on the local real estate moguls.
Don't fall victim to their sad stories - no government bailouts. Restitution will need to come from the greedy Realtors, builders and mortgage brokers. It is estimated that 1 trillion dollars of ARM's will adjust this year -- 1.0 trillion to reset - and another 1.5 trillion will adjust in 2008. The sob stories will fill the newspaper everyday - see the "public notices" section.
This town was sold a bill of goods that it can't afford - "buy now or be priced out forever", "now is a great time to buy", "do whatever you can to get a home, since real estate only goes up", "they are not making anymore land", etc... The seller was your local Realtor and mortgage broker. Believe them at your own financial peril!
From the Bakersfield Californian :
In the last three months of 2006, for example, Kern counted 153 foreclosure sales, said John Karevoll, a real estate analyst with DataQuick. That's up from 19 in the same period the previous year.
Statewide, foreclosures jumped almost 600 percent, DataQuick figures show.
In raw numbers, that meant nearly 6,080 foreclosures in California during the last quarter of 2006 compared to about 875 during 2005's final quarter.
In Dunaway's case, the situation is especially grating because he believes his mother, Mary Dunaway, unknowingly signed off on a predatory loan more than seven years ago.
Mary Dunaway said stress is eating away at her.
"I'll be 83 years old in May and they want to throw me out in the street," she said during a recent interview at her well-kept home in the 2600 block of Tangerine Street
Sunday, February 04, 2007
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Don't fall victim to their sad stories - no government bailouts. Restitution will need to come from the greedy Realtors, builders and mortgage brokers
Do you see what you greedy realtwhores and mortgag scum brokers have caused.
That sucks to loose your home, but she had 83 years to learn how to read a contract or learn to find someone she trusts (family memeber, close freind, lawyer) to read it for her.
Don't sign something you dont understand!!
"but she had 83 years to learn how to read a contract or learn to find someone she trusts"
So screwing the elderly is ok because they should have know better. You must be a realtwhore/mortgage scum bait piece of garbage.
If she was truly duped - she needs to collect from the holder of her note. Not the taxpayers!
Rep Barney Frank already some legislation in congress proposing some taxpayer subsisidies for the coming foreclosures...
Hearing to Spotlight B&C
Foreclosure Fears
Mortgage industry representatives will have a chance to calm fears that a wave of subprime foreclosures could reach crisis proportions over the next few years when they testify before the Senate Banking Committee on Feb. 7.
Committee Chairman Christopher J. Dodd, D-Conn., has scheduled the hearing, entitled "Preserving the Dream: Predatory Lending Practices and Home Foreclosures," largely in response to a Center for Responsible Lending study indicating that 20% of all adjustable-rate subprime mortgages originated in 2005 and 2006 will end up in foreclosure.
Citing the CRL study, Sen. Dodd said recently that 2.2 million families with nontraditional or subprime loans made since 1998 "have faced or will soon face foreclosures because of mortgage lending practices that have been described as 'predatory' in nature."
Executives from the CRL, the Mortgage Bankers Association, the National Association of Mortgage Brokers, and others will testify, including two consumers.
All predatory lenders should get 5 - 10 in the big house and learn how to walk with a hinge in their back.
If you own and operate a small mortgage company and you just went out of business you fall in this category. Realtwhore/Mortgage scum bait.
" and another 1.5 trillion will adjust in 2008."
I've been searching for a 2008 estimate for quite sometime. Can you please post a source for this estimate? Do you know of any estimates for 2009?
Thanks again,
not all realtors are whores, nor all mortgage brokers scum. that is a hasty generalization if i have ever read one. please know that there are plenty of good people out there, who do abide by a strict code of ethics and are not in it for the quick buck.
signed your friendly neighborhood realtor!
Everyone must realize that the primary advertising purchasers in all the nations' newspapers are the real estate and mortgage industry.
Since the internet has removed much of the news-readership, and hence, subscriber base, the newspapers have to pay the bills somehow. Along comes the RE/mortgage industry to save the day.
Face it, the real estate/mortgage industry literally OWN the newspapers today.
Should we really expect the papers to not cater to their every wish? I expect the papers will continue dampening the collapse and minimizing the mortgage banking financial fallout until the foreclosures have finally started coming down (say, 2011). They are still extremely dishonest regarding falling prices, and I fully expect it to stay that way as long as possible.
Advertising dollars poison all. George Seldes is my hero.
http://en.wikipedia.org/wiki/George_Seldes
btw, I enjoy your blog, keep up the great work!
Its sure funny how every realtor was to damm busy to help me out a couple years ago. Now I get my ass kissed by these re scum when I run into one. Wipe off your nose.
Never said all realtors are realtowhores and all mortgage brokers are mortgage scum. However, why don't you take a good look at yourself and decide what camp you are in.
friendly neighborhood realtor-
How is the local market doing?
Thanks
Reset information:
Many sources claim different numbers. Here are a few -
(1)In a statement released Wednesday, the FOMC seemed pleased with the overall progress of the economy in a positive direction, especially the housing sector. “Recent indicators have suggested somewhat firmer economic growth, and some tentative signs of stabilization have appeared in the housing market,” the Committee said.
Although this bodes well for consumer loans, home equity lines of credit, and credit cards, it does little to alleviate the long-term effects starting to be felt by homeowners who signed on to very risky adjustable-rate subprime mortgages during 2005 and 2006.
The interest rates on more than $1 trillion in these “exotic” mortgages are due to reset to higher rates in both 2007 and 2008. Perhaps the rate increase won’t be as much as it might have been otherwise due to the Fed’s latest position on the economy. However, there is no guarantee either. And when the rates are adjusted, many distressed homeowners will feel the effects of increased mortgage payments right away, resulting in the spigot to the foreclosure pipeline being opened at least a little more.
http://www.foreclosurepulse.com/
(2)You've going to have $2 trillion of adjustable mortgages being reset across the country, you have higher oil prices and that takes away from the consumers again, and you also have credit card companies that have raised the monthly minimum, and then you have inflation eating away at the consumers again," Yamamoto said.
http://starbulletin.com/2006/07/09/business/story02.html
(3)2.2 trillion to reset in 2007 and 200 million in 2008
http://www.fanniemae.com/media/pdf/berson/monthly/2006/092006.pdf
BB @ Mon Feb 05, 06:45:00 PM
Thanks.
Have you heard the commercial on the radio for a lawfirm that is telling people to call them if they got into a loan that they did not fully understand??
The pain is just starting.
>>>>>>>>So screwing the elderly is ok because they should have know better. You must be a realtwhore/mortgage scum bait piece of garbage.>>>>>>>>
I am not a realtor or a morgage broker...I just financially conservative individual that cannot believe that someone would sign a contract without understanding what they are signing.
Are you saying that all old folks are uable to make financial and legal choices??? I don't agree.
Buyer beware. And don't sign something you don't understand!!!
I hope the govt dosn't start bailing out people that got themselves into these situations...old or young...tax payers shouldn't have to pick up the bill for dumb people.
Withdrawn 02/06/07 Listing # 26022378 3507 Herndon St Bakersfield, CA 93312 Listing Price: $280,000
NO LONGER FOR SALE! County: Kern Cross St: Meacham/Verdugo Map: 2441, C2 See Map
Poor souls had to withdraw their listing. No brand new house for them. I like how the broker shouts: NO LONGER FOR SALE! Greed is the key and no sale = no comission.
Original asking price, 250K. Then price hiked to 274K. Then price reduced to 260K with 5K towards closing cost. Final price increased to 280K & then withdrawn. Funny Stuff.
Last anon-
they purchased 1/6/2000 for $60,500. Getting a little greedy?
The home has 1,202 sq ft and they are asking over $200 per sq ft. Good luck!
"So screwing the elderly is ok because they should have know better. You must be a realtwhore/mortgage scum bait piece of garbage"
Gee, you are STUPID. The government has been SCREWING THE ELDERLY for the last 20 years, where have you been?
Try getting your head of your ass for once...
Hey at least she can eat dog meat if things get really bad...Those puche's will make a great meal deep fried...
Hannabal the Realtor
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