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Amherst Sees 7m Foreclosures Poised to Distress House Prices
Housing Wire ^ | 09/24/09 | DIANA GOLOBAY

Posted on 09/30/2009 10:45:33 PM PDT by TigerLikesRooster

Amherst Sees 7m Foreclosures Poised to Distress House Prices

By DIANA GOLOBAY

September 24, 2009 10:34 AM CST

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Recent analysis by the Amherst Securities Group indicates the housing industry will not only worsen as a delayed pipeline of foreclosed loans begins to liquidate, but that the Administration’s Making Home Affordable Modification Program (HAMP) will have no lasting effect on keeping delinquent loans current.

The early signs of stabilization seen among housing industry observers may soon recede as an overhang of the shadow inventory of foreclosures waits to enter the market.

The general outlook that the housing market has bottomed is “premature” optimism, according to analysis this week from Amherst.

“The single largest impediment to a recovery in the housing market is the large number of loans that are either in delinquent status or in foreclosure that are destined to liquidate,” analyst Laurie Goodman said in an insight report Wednesday.

(Excerpt) Read more at housingwire.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: amherst; forecolsure; housingbubble; loan

1 posted on 09/30/2009 10:45:34 PM PDT by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

Ping!


2 posted on 09/30/2009 10:45:57 PM PDT by TigerLikesRooster (LUV DIC -- L,U,V-shaped recession, Depression, Inflation, Collapse)
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To: TigerLikesRooster
"the Administration’s Making Home Affordable Modification Program (HAMP) will have no lasting effect on keeping delinquent loans current."

Another $35 billion down the socialist rat hole.

Sad thing is, The Obammunist and every congress critter knew the Anherst info months ago.

This info has been in black and white at many government and independent web sites for a long time.

yitbos

3 posted on 09/30/2009 10:59:56 PM PDT by bruinbirdman ("Those who control language control minds.")
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To: TigerLikesRooster

They need to shut up an pay their damn mortgage.


4 posted on 09/30/2009 11:07:07 PM PDT by trumandogz (The Democrats are driving us to Socialism at 100 MPH -The GOP is driving us to Socialism at 97.5 MPH)
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To: trumandogz
Re-fi re default rate = 70% within 12 months.

That just means they get another year's worth of subsidized rent on a single family dwelling.

yitbos

5 posted on 09/30/2009 11:13:50 PM PDT by bruinbirdman ("Those who control language control minds.")
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To: trumandogz
They need to shut up an pay their damn mortgage.

Why would they do that? That is certainly not something one with even two functioning brain cells would accept an obligation to do as a given.

The value of real estate is directly proportional to the real median individual income. That is not a new observation, any Belgian school economist will go on ad nauseum about it.

The banks and mortgage companies had every means to know the home prices they were giving loans on were vastly inflated - no innocent victims there. Some of the buyers, however, were simply inexperienced and naive.

If real estate prices free fall to the actual value, more people will be able to buy without crippling loans. Socialist schemes to prop up prices are never good in the long run.

6 posted on 09/30/2009 11:26:32 PM PDT by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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To: bruinbirdman

And yes, I am one of those people who were forecasting the housing bubble collapse. Simple very basic math.

Consider this your “I told you so.” for the evening.


7 posted on 09/30/2009 11:28:48 PM PDT by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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To: TigerLikesRooster

never saw this coming... oh wait, yes i did. october 1 on the dot


8 posted on 09/30/2009 11:41:57 PM PDT by sten
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To: TigerLikesRooster

I don’t see what’s so distressing. Houses are still overpriced.


9 posted on 09/30/2009 11:42:55 PM PDT by Tempest (I believe in the sanctity of life... As long as you can afford it.)
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To: TigerLikesRooster

Makes me want to sell ....


10 posted on 09/30/2009 11:57:49 PM PDT by dennisw (Free Republic is an island in a sea of zombies)
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To: TigerLikesRooster

Maybe HAMP isn’t working because this administration is smoking too much HEMP!!


11 posted on 10/01/2009 12:21:49 AM PDT by 2ndDivisionVet (I will raise $2 million for Sarah Palin if she runs; What will you do?)
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To: MrEdd
" I am one of those people who were forecasting the housing bubble collapse."

I remember MrEdd's forcast at least back in 2006.

yitbos

12 posted on 10/01/2009 1:00:34 AM PDT by bruinbirdman ("Those who control language control minds.")
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To: bruinbirdman
Right you are. The longer the Feds keep fooling around with this the longer it will take to clear up. Every foreclosed house will sell....at some price.

Let the free market work. Some people will be hurt financially, some will become very wealthy.

13 posted on 10/01/2009 3:46:57 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: bruinbirdman

The purpose isn’t to make things better: wealth transfer is the name of the political game.


14 posted on 10/01/2009 3:47:05 AM PDT by 1010RD (First Do No Harm)
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To: Jimmy Valentine

It is like going in for a one hour surgery in only 1 minute intervals over sixty days. Anyone with half a brain cell could see that for the physical body it would be devastating, but for some reason economics is hard to understand.


15 posted on 10/01/2009 3:49:41 AM PDT by 1010RD (First Do No Harm)
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To: 1010RD
"economics is hard to understand."

It is for Congress which is full of people who can't even balance their checkbook.

16 posted on 10/01/2009 3:57:13 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: TigerLikesRooster

And one reason these homes will sit unsold — 50 million potential homeowners aborted.


17 posted on 10/01/2009 3:59:22 AM PDT by The Truth Will Make You Free
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To: TigerLikesRooster

On what planet? None of this is affecting home prices in this part of Texas. What a joke.


18 posted on 10/01/2009 4:10:34 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: Jimmy Valentine
It is ironic. I meet liberals who truly believe that ideas which have to be enforced on the general public and have never worked in history will work this time if they get the right person.

Somehow, the default character of the average politician never lives up to the rhetoric.

That a free people would seek to be ruled by the political class, a group of people whose top skill is obsequiousness during elections and monarchical conceit afterward, completely blows my mind.

19 posted on 10/01/2009 4:20:43 AM PDT by 1010RD (First Do No Harm)
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To: TigerLikesRooster
Photobucket
20 posted on 10/01/2009 6:31:47 AM PDT by preacher (A government which robs from Peter to pay Paul will always have the support of Paul.)
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To: MrEdd

A speculator has bought a small house on two acres adjoining my property. I met him two days ago and he told me he is asking $89000. for it. This was after he had told me that the company which had foreclosed on the place had asked $79000. and then cut it to $69000. and then cut it again and he, “made them an offer”. I gather that he paid no more than $50000. which is less than it sold for five or six years ago when it was bought by the owner who was foreclosed on.

Not only does he tell me he wants what sounds like at least a fifty percent profit but he proposes to cut off a small lot on either side of the house and asked me what I thought of that. I told him I didn’t think it was a very good idea. I suspect he may wind up taking a loss before all is said and done.

If he doesn’t turn it quickly then by late March he will be facing huge maintenance costs for the lot, a few weeks in the spring here without maintenance will make it look like a house abandoned in the woods.


21 posted on 10/01/2009 7:52:23 AM PDT by RipSawyer (Trying to reason with a leftist is like trying to catch sunshine in a fish net at midnight.)
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To: TigerLikesRooster

US to Home Prices: Come on DOWN!!!


22 posted on 10/01/2009 10:58:03 AM PDT by 2harddrive
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To: 1010RD
Agreed. Unfortunately over time we have allowed a Mandarin class to arise whose only aim is to participate in and control the politics of this country.

If there is a way to rid ourselves of these people, we should do so.

23 posted on 10/01/2009 4:12:42 PM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: RipSawyer
you should do him a favor and graffiti the house.
24 posted on 10/01/2009 8:35:23 PM PDT by Tempest (I believe in the sanctity of life... As long as you can afford it.)
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To: Tempest

“you should do him a favor and graffiti the house.”
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Oh, no, I would never do that. I don’t resent the man for trying to make some money on the property. I just think he is misjudging things and I thought it a little odd that he told me how much the mortgage company cut their price before he made them an even lower offer and bought it and then turn around and tell me he is asking ten thousand more than the mortgage company wanted at the start. Why does he think he can do so much better than the mortgage company could do?


25 posted on 10/02/2009 5:16:50 AM PDT by RipSawyer (Trying to reason with a leftist is like trying to catch sunshine in a fish net at midnight.)
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