Foreclosure activity in California in the second quarter jumped by 67 percent over the year-earlier period * * * “The speculators are definitely on the run, and walking away from properties they cannot afford to hold and cannot sell at a profit . . ." “Almost 5,300 homes in Colorado have already been lost in foreclosure and, as of August 11, over 11,300 were in the pre-foreclosure process . . ."
The naysayers reject the truth. They claim, "It's always a good time to buy a house." Yeah, right. Nada por nada. Get your free mortgages on line. LOL, LOL, LOL! "Nothing to see here. Lock your windows. Time to move on."
Folks just gotta separate their 'wants' from their 'gots!'
The 67% increase in foreclosures is a totally meaningless number unless it is placed in the context of a hard number for last year.
This doesn't belong in Front Page News.
It is always a good time to buy a house, if you can afford it (without a creative mortgage)and expect to stay there for a long time.
It wasn't the purchasing, it was the adjustable mortgages.
A warning to the young. Never take a loan you can't pay off.
*Ping* !
( No more Olmert! No more Kadima! No more Oslo!)
I've been wondering when this would start. The prices there are five or six times what I owe on my own comparable home in East Texas. It's craziness. They are at the end of the line with this "bigger fool" theory. I was watching TV the other day and this particular house sold for $550,000 and it was a piece of crap. I wouldn't have given $25,000 for it and it took another $80,000 to make it habitable and it sold for $780,000. These people are crazier than the lunatic that runs Iran. At least he knows what he is doing (to destroy the west). These people out in California do not have a clue. Going to be a lot of bankruptcies and then a lot of people who won't and will owe for the rest of their lives until the grim reaper comes collecting. Lunancy. Sheer lunacy.
On average, lenders filed 32,762 notices of default each quarter over the past 14 years.
Q2 06's 20,752 total was the highest since 25,511 were filed in first quarter 2003. That was up 10.5 percent from 18,778 the previous quarter and up 67.2 percent from 12,408 in the second quarter of last year.
Foreclosure activity hit a low during the third quarter of 2004, when lenders filed 12,145 default notices. Current statewide foreclosure activity amounts to about one-third of the peak level in the first quarter of 1996, when 59,897 defaults were filed.
While the YOY quater rise was the greatest since Dataquick started tracking, last years numbers were a statistical anomoly as well.
That said, trouble is right around the corner. According to Dataquick, "the spike in defaults is mainly the result of slowing price appreciation. It makes it harder for people behind on their mortgage to sell their homes and pay off the lender." With supply skyrocketing and appreciation leveling off (if not falling), those with no equity and exotic mortgages are going to get burned.
http://www.dqnews.com/RRFor0806.shtm
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