Posted on 03/12/2010 6:50:52 AM PST by TigerLikesRooster
New round of foreclosures threatens housing market
By Renae Merle
Washington Post Staff Writer
Friday, March 12, 2010; A01
The housing market is facing swelling ranks of homeowners who are seriously delinquent but have yet to lose their homes, and this is threatening a new wave of foreclosures that could hit just as the real estate market has begun to stabilize.
About 5 million to 7 million properties are potentially eligible for foreclosure but have not yet been repossessed and put up for sale. Some economists project it could take nearly three years before all these homes have been put on the market and purchased by new owners. And the number of pending foreclosures could grow much bigger over the coming year as more distressed borrowers become delinquent and then, if they can't obtain mortgage relief, wade through the foreclosure process, which often takes more than a year to complete.
As these foreclosed properties add to the supply of homes for sale, they could undercut housing prices, which have increased modestly through December, according to the most recent figures in the S&P/Case-Shiller home prices index. That rise partly reflected a slowdown in the flow of foreclosed homes onto the market.
The rate at which J.P. Morgan Chase seized properties, for example, peaked in the middle of 2008 and fell steadily last year, according to a February investor report. But the bank expects repossessions to increase this year, nearly doubling to 45,000 by the fourth quarter.
(Excerpt) Read more at washingtonpost.com ...
P!
As a homeowner who makes his payments on time every month, I take extreme exception to the fact that banks are allowing people to stay in their homes despite non-payment. Methinks the banks are being forced to retain 90+ day delinquents by the government.
You’re not thinking like a bank.
Start thinking like a bank who is trying to plump up their books... and then you see why they delay foreclosure.
no jobs no house payments
That’s understood, I think. The longer they wait, the more the FDIC will have to shell out. The writing on the wall couldn’t be clearer. The FDIC will collapse when banks start coming up broke. The fiscal pillars can only hold so much.
Ummm, you might want to re-read the first 6 letters of your tag line ... just sayin’
But...but retail sales are up. I just heard the good news this morning.
If these were normal times, I would agree, but this is actually a win/win for everyone. The homeowner still has a roof over their heads and the bank still has a property somewhat maintained rather than stripped and vandalized. Not having a vacant home on the street also helps the other homeowners around that house.
Many people (myself included) lost a job and were unable
to make house payments. Not everyone is a deadbeat. I
have always prided myself on meeting my expenses.
I’m an appraiser in Orlando. It is UGLY here. My business went in the crapper a couple of years ago (from 6-8 appraisal assignments a week to one appraisal every month or two). Few people qualifying to buy and no one has equity to refinance. Hence, no need for an appraisal.
Started a new business doing the blue collar work on foreclosures. Much less stress and I keep plenty busy. Too bad everybody else who has lost his job has decided to get into this business too.
Anyway, there’s no end in sight. There is definitely “shadow inventory” that banks are holding back. It’s a terrible thing for the neighbors. The homeowner has vacated long ago but the bank won’t take legal possession of the house and take on the responsibility for mowing the lawn, cleaning the pool, etc.
This is the inevitable “second wave” of trouble which many of us have been warning about for a year now. It is inevitable. It will be very, very bad.
[Start thinking like a bank who is trying to plump up their books... and then you see why they delay foreclosure.]
But by kicking the can repeatedly down the road, they have IMHO created an even bigger mess.
Too big to fail. It IS time for another stimulus, WE HAVE TO DO SOMETHING, NOW!
“The fiscal pillars can only hold so much.”
Obama has his own pillars. Allah bless him.
I live in Florida - and you’re right. It’s bad here...
Phoenix Foreclosed Homeowners Told To Leave on Day of Auction
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