Florida Taking Its Toll (Brothers) On Daughter's Condo (sign of the housing apocalypse?)

CNBC ^ | 11 FEB 2008 | Diana Olick

[Leisler]

There is a longer wave then just government policy. The world is now, richer than it has ever been. People always wanted, and now it is possible, nice homes, which were along with many other things, the province of the rich. Just like air travel, a vacation home, a second car, air conditioning, college education. All of which with in recent memory were luxuries and now are considered normal for all but street people. This is happening everywhere. Unless some world wide nuclear war, these products and services will be delivered, more or less at ever higher quality, higher numbers and relative lower costs. Homes/houses are but common goods to be produced much like fridges and cars, both of which industries have had their ups and downs.

[Southack]

ACORN again...

Countrywide debuts new ‘workout’ plan for subprime borrowers
11:47a ET February 11, 2008 (MarketWatch)
NEW YORK (MarketWatch) — Help could be on the way for some subprime-mortgage borrowers caught up in the twin sagas of the plummeting housing market and besieged Countrywide Financial Corp., after the nation’s largest home-loan lender said Monday that it’s broadening efforts to help prevent foreclosures.

The Calabasas, Calif.-based company is teaming up with the Association of Community Organizations for Reform Now, the advocacy group also known as ACORN, to expand an existing $16 billion program to help subprime borrowers avoid foreclosure and work out more manageable rates on their mortgages.

The new plan will be open to borrowers whether they are current on their payments or not, and they need not have adjustable-rate mortgages to apply, the company said.

It will allow all Countrywide borrowers with subprime loans to seek “workout” options, not just those with ARMs whose rates are due to “reset” at higher levels.

Many borrowers have struggled to stay current on payments that have reset to vastly higher rates — a function of the many “hybrid” loan products popularized earlier this decade as a way stimulate the lending environment.

“The practices set out in this historic agreement fill gaps by providing assistance to borrowers who don’t fit the financial situations covered in the previously announced initiatives, placing Countrywide and ACORN at the forefront of assisting more homeowners across the nation to stay in their homes,” said Maude Hurd, national president of ACORN. “We hope others in the mortgage-servicing industry will adopt similar practices.”

Shares of Countrywide traded more than 2% higher in recent action, changing hands at $6.74, up 16 cents.

Countrywide has struggled to come up with a publicity-friendly plan for dealing with the skyrocketing number of defaults on its books, even as federal regulators have scrambled to put together a plan to help avoid foreclosures.

The Bush administration debuted its own subprime plan in December, under which the government and banks like Countrywide, Citigroup Inc. , Washington Mutual Inc. and Wells Fargo & Co. would work together to help keep borrowers in their homes.

Industry research firm RealtyTrac said Jan. 30 that foreclosure filings were up 75% in 2007, with some particularly hard-hit states seeing a 79% rise. The data showed that more than 2 million properties went into foreclosure in that 12-month period, with December seeing an 86% increase in foreclosure activity from the same month a year earlier.

At the end of last year, Countrywide said that nearly 7% percent of loans in its servicing portfolio were delinquent — a jump of nearly two percentage points from the same period the year before. Of those, more than 1% faced immediate foreclosure, with that number expected to rise in the next few months.

Countrywide had been expected to announce Monday’s agreement last month, but that plan was put on hold after news broke that the lender would be acquired by Bank of America Corp. in a $4.1 billion, all-stock deal.

How effective government and industry programs have been is debatable. The Mortgage Bankers Association reported last week that about 40% of the subprime adjustable loans that went into foreclosure in the last three months did so after borrowers could not meet the terms of already-modified loans.

[packrat35]

My parents live in Panama City Beach. Starting about 6 years ago, condos started going up all along the water. I commented then, “Who were going to buy this many condos?”

They were literally buying up all the small businesses and tearing them down to build condos. Many are unfinished now and the ones that are finished are nowhere near full.

[DManA]

Must be a Baby Hugie sized baby.

[freekitty]

LOL and it’s probably her starter home.

[presently no screen name]

then she could be out $172,765

Less than $250,000. Then she can turn around and buy it when the fire sale is on! In the end, maybe save $800,000 for that 'little' place.

[freekitty]

Giggle

[DManA]

[HamiltonJay]

I didn’t read the exact numbers, because it doesn’t matter. SHe’s out 172,765 if she doesn’t close, but if the market has dropped 13%, which is claimed, then she’s out far over 250k if she buys.... eating 173k is far less than nearly 300k.

[freekitty]

Now, that’s funny.

[presently no screen name]

Absolutely.

[presently no screen name]

LOL! My first laugh of the day. Thanks.