Headlines...
- Thread starter effenheimer_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
southoctracker_IHB
New member
<a href="http://www.ocregister.com/ocregister/homepage/abox/article_1977113.php"><strong>Look up O.C. areas' prosperity, philanthropy and tax liability</strong></a>
See how much people earn, donate to charity and pay in taxes for every city and ZIP code.
I'm assuming under "average income" they're talking about household. Very interesting data - don't forget to click on "details" on the right of the table to get more info about any ZIP code.
See how much people earn, donate to charity and pay in taxes for every city and ZIP code.
I'm assuming under "average income" they're talking about household. Very interesting data - don't forget to click on "details" on the right of the table to get more info about any ZIP code.
Trooper_IHB
New member
<p>IR, I clicked on the link for "Demystifying the mortgage mess", it loads but all I get is a 30 second NetFlix commercial, then blank screen. Maybe they took the story down?</p>
<p>edit: cut and paste the url...that one plays the story.</p>
<p>edit: cut and paste the url...that one plays the story.</p>
effenheimer_IHB
New member
Alphabet soup: <a target="_blank" href="http://calculatedrisk.blogspot.com/2008/02/pmi-reduces-max-ltv-for-insurance.html">CR PMI and LTV</a>
effenheimer_IHB
New member
<p>Daddy's girl <a target="_blank" href="http://www.cnbc.com/id/23110984/site/14081545">sends jingle-mail</a>.</p>
<p><em>You just can’t make this stuff up. Apparently even a big builder’s daughter can’t seem to keep faith in the Florida housing market. According to an SEC filing, Wendy Topkis, daughter of Toll Brothers co-founder and Vice-Chairman Bruce Toll, is walking away from a Florida condo, just like everyone else.</em></p>
<p><em>You just can’t make this stuff up. Apparently even a big builder’s daughter can’t seem to keep faith in the Florida housing market. According to an SEC filing, Wendy Topkis, daughter of Toll Brothers co-founder and Vice-Chairman Bruce Toll, is walking away from a Florida condo, just like everyone else.</em></p>
Trooper_IHB
New member
eff, that's PRICELESS ! You'd think Bob would have made it work to keep the bad publicity away !
southoctracker_IHB
New member
What's next? Mozillo's grandkids defaulting on C'Wide loans?
Trooper_IHB
New member
Found this link on CR. <a href="http://mortgage.freedomblogging.com/2008/02/11/oc-distressed-homes-for-sale-up-18-this-year/">Mortgage Insider » Blog Archive » O.C. distressed homes for sale up 18% this year - OCRegister.com</a>
profette_IHB
New member
<p><a href="http://www.nytimes.com/2008/02/12/business/12credit.html?_r=1&hp&oref=slogin">Mortgage Crisis Spreads Past Subprime Loans</a> </p>
<p>"The credit crisis is no longer just a subprime mortgage problem. </p>
<p>As home prices fall and banks tighten lending standards, people with good, or prime, credit histories are falling behind on their payments for home loans, auto loans and credit cards at a quickening pace, according to industry data and economists.</p>
<p>The rise in prime delinquencies, while less severe than the one in the subprime market, nonetheless poses a threat to the battered housing market and weakening economy, which some specialists say is in a recession or headed for one. </p>
<p>Until recently, people with good credit, who tend to pay their bills on time and manage their finances well, were viewed as a bulwark against the economic strains posed by rising defaults among borrowers with blemished, or subprime, credit.</p>
<p>“This collapse in housing value is sucking in all borrowers,” said Mark Zandi, chief economist at Moody's..."</p>
<p>Well, it certainly does <em>suck...</em></p>
<p>"The credit crisis is no longer just a subprime mortgage problem. </p>
<p>As home prices fall and banks tighten lending standards, people with good, or prime, credit histories are falling behind on their payments for home loans, auto loans and credit cards at a quickening pace, according to industry data and economists.</p>
<p>The rise in prime delinquencies, while less severe than the one in the subprime market, nonetheless poses a threat to the battered housing market and weakening economy, which some specialists say is in a recession or headed for one. </p>
<p>Until recently, people with good credit, who tend to pay their bills on time and manage their finances well, were viewed as a bulwark against the economic strains posed by rising defaults among borrowers with blemished, or subprime, credit.</p>
<p>“This collapse in housing value is sucking in all borrowers,” said Mark Zandi, chief economist at Moody's..."</p>
<p>Well, it certainly does <em>suck...</em></p>
graphrix_IHB
New member
Ugh... the NY Times is at it again with their lack of fact checking. Don't they know, there are blogs out there that like to rip them apart, when they report crap?
<em>Home prices in the North Las Vegas neighborhood of Brenda Harris, a technology analyst at a casino company, have fallen 20 percent to 30 percent. The builder who sold her a new three-bedroom home on Pink Flamingos Place for about <strong>$392,000 in 2006</strong> is now listing similar properties for $314,000. A larger house a block down from Ms. Harris was recently listed online for $310,000. </em>
<p><em>But Ms. Harris does not want to leave her home. She estimates that she has spent close to <strong>$40,000 on her property, about half for a down payment</strong> and much of the rest on a deck and landscaping.</em></p>
<p><em>“I’m not behind in my payments, but I’m trying to prevent getting behind,” Ms. Harris said. “I don’t want to ruin my credit.”</em></p>
<p><em>In addition to the declining value of her home, Ms. Harris, 53, will soon be hit with a sharply higher house payment. <strong>She has an option adjustable-rate mortgage, a loan that allows borrowers to pay less than the interest and principal due every month</strong>. <strong>The unpaid interest gets added to the principal balance. She is making the minimum monthly payments due on her loan, about $2,400.</strong> </em></p>
<p><em><strong>But she knows she will not be able to pay the $3,400 needed to cover her interest and principal, which she will be required to pay once her loan balance reaches 115 percent of her starting balance.</strong> And under the terms of her loan, which was made by Countrywide Financial, she would have to pay a prepayment penalty of about $40,000 if she chose to refinance or sell her home before May 2009.</em></p>
<p><em>She said that she now wishes she had taken a traditional fixed-rate loan when she bought the home. At the time, she asked for a loan that could be refinanced after one year without penalty. She said her broker had told her a week before the closing that the penalty would extend until May 2009 and that she reluctantly agreed because she had already started moving.</em></p>
<p>Okay... a little math here... So, she put 10% down, maybe she got a second loan, or maybe it is a loan with mortgage insurance, but still, the math is way wrong. Even if she did a 90% LTV loan with MI, the minimum payment would be around $1260 a month. The interest only payment would be $2205 a month, and with taxes and insurance the minimum payment wouldn't even be $2400, and depending on her underlying rate, the interest only payment with taxes and insurance may not even be $2400 a month.
</p>
<p>Now, even after maxing the rate out at the cap of 9.95%, at 115%, then it still doesn't equal the $3400 a month the article cites, but close at less than $3100 a month.</p>
<p>Where the hell they came up with these numbers, gawd only knows. I would expect such hackery from Gretchen, but come on NY Times. Get your facts straight, and know that there are people who know how to use a calculator, and seriously... your writing staff should learn how to use one too.
</p>
<em>Home prices in the North Las Vegas neighborhood of Brenda Harris, a technology analyst at a casino company, have fallen 20 percent to 30 percent. The builder who sold her a new three-bedroom home on Pink Flamingos Place for about <strong>$392,000 in 2006</strong> is now listing similar properties for $314,000. A larger house a block down from Ms. Harris was recently listed online for $310,000. </em>
<p><em>But Ms. Harris does not want to leave her home. She estimates that she has spent close to <strong>$40,000 on her property, about half for a down payment</strong> and much of the rest on a deck and landscaping.</em></p>
<p><em>“I’m not behind in my payments, but I’m trying to prevent getting behind,” Ms. Harris said. “I don’t want to ruin my credit.”</em></p>
<p><em>In addition to the declining value of her home, Ms. Harris, 53, will soon be hit with a sharply higher house payment. <strong>She has an option adjustable-rate mortgage, a loan that allows borrowers to pay less than the interest and principal due every month</strong>. <strong>The unpaid interest gets added to the principal balance. She is making the minimum monthly payments due on her loan, about $2,400.</strong> </em></p>
<p><em><strong>But she knows she will not be able to pay the $3,400 needed to cover her interest and principal, which she will be required to pay once her loan balance reaches 115 percent of her starting balance.</strong> And under the terms of her loan, which was made by Countrywide Financial, she would have to pay a prepayment penalty of about $40,000 if she chose to refinance or sell her home before May 2009.</em></p>
<p><em>She said that she now wishes she had taken a traditional fixed-rate loan when she bought the home. At the time, she asked for a loan that could be refinanced after one year without penalty. She said her broker had told her a week before the closing that the penalty would extend until May 2009 and that she reluctantly agreed because she had already started moving.</em></p>
<p>Okay... a little math here... So, she put 10% down, maybe she got a second loan, or maybe it is a loan with mortgage insurance, but still, the math is way wrong. Even if she did a 90% LTV loan with MI, the minimum payment would be around $1260 a month. The interest only payment would be $2205 a month, and with taxes and insurance the minimum payment wouldn't even be $2400, and depending on her underlying rate, the interest only payment with taxes and insurance may not even be $2400 a month.
</p>
<p>Now, even after maxing the rate out at the cap of 9.95%, at 115%, then it still doesn't equal the $3400 a month the article cites, but close at less than $3100 a month.</p>
<p>Where the hell they came up with these numbers, gawd only knows. I would expect such hackery from Gretchen, but come on NY Times. Get your facts straight, and know that there are people who know how to use a calculator, and seriously... your writing staff should learn how to use one too.
</p>
caycifish_IHB
New member
<p>Awgee,</p>
<p>I actually laughed when I saw the words "30 days." As if that's really going to make a difference. </p>
<p>I actually laughed when I saw the words "30 days." As if that's really going to make a difference. </p>
IrvineRenter_IHB
New member
<p><a href="http://online.wsj.com/article/SB120276871472760255.html">Homes in Bubble Regions
Remain Wildly Overvalued</a></p>
<p class="times">If you own a home in a former bubble region like California or southern Florida, there's bad news… and really bad news.</p>
<p class="times">And they suggest that it is still way too early to go bargain hunting in these markets, although -- of course -- there is always the occasional deal around.</p>
<p class="times">The bad news is fresh market data published Monday night by real-estate Web site Zillow.com. They show prices, as expected, kept slumping through the end of last year.</p>
<p class="times">But the really bad news is that, even after a year of misery and falling prices, homes in many of these regions still aren't cheap. They remain wildly overvalued compared to average personal incomes.</p>
<p class="times">There is a strong long-term correlation between the two figures. And in many regions, house prices would still have to fall a very long way to get back into line.</p>
<p class="times">How far?</p>
<p class="times">Try around a third in Florida and Arizona -- and closer to 40% in California.</p>
<p class="times">Yes, from here. The long-term chart for California is shown below.</p>
<p class="times">Even if house prices stabilized, it would take a decade or more for rising incomes to catch up.</p>
<p class="times"><img alt="" src="http://s.wsj.net/public/resources/images/OB-BA440_ROI_CA_20080211164602.gif" />
</p>
<p class="times">The data on median house prices and per capita personal income in these states have been tracked by Karl Case, economics professor at Wellesley College. (He is one half of the duo behind the closely-watched Case-Schiller real estate index).</p>
<p class="times">Professor Case's numbers ran through the end of the third quarter. I decided to see how they might look today, using Zillow's data for the fourth quarter.</p>
<p class="times">The company hasn't posted statewide data, but the price falls across the many cities it tracks give a pretty strong picture. From these I assumed, for the sake of calculations, that California prices fell 8% last quarter from the third quarter, a huge number by historic measures but not out of line with Zillow's data. For Florida and Arizona I assumed declines of 5% and 5.5%. You could use other, more modest estimates for the recent declines: They won't change the outcomes much. I also assumed personal incomes in these states rose in line with recent and historic averages."</p>
<p class="times">The results? In all three markets, the prices are well off their peaks when compared to incomes. But they remain far above historic averages.</p>
<p class="times">Median prices in California peaked in 2006 at 13.3 times per capita incomes. Hard to believe, but true. They may be down now to about 11.1 times.</p>
<p class="times">But that's still way above the ground. Throughout most of the 80s and 90s they ranged between six and seven times incomes.</p>
<p class="times">Just to get down to seven times incomes, prices would have to fall 37% tomorrow.</p>
<p class="times">Those who bought at the peak of the cycle may be pinning their hopes instead on "incomes catching up" instead. But they had better be patient. Even if house prices stayed exactly where they are, it would take around 10 years for rising incomes to bring the ratios back into any sort of alignment.</p>
<p class="times">And it would take even longer before prices started to look very cheap again.</p>
<p class="times">That's based on average personal income growth of 4.6% a year in California and Florida and 4.2% in Arizona.</p>
<p class="times">Yes, these are projections and estimates. Time and chance will play their usual roles. And there will doubtless be different pictures within regions of the same state.</p>
<p class="times">Nonetheless the overall picture is pretty clear. And, if you are a homeowner in any of these regions, none too appealing.</p>
<p class="times"><strong>Write to</strong> Brett Arends at <a class="times" href="mailto:brett.arends@wsj.com">brett.arends@wsj.com</a> </p></strong>
Remain Wildly Overvalued</a></p>
<p class="times">If you own a home in a former bubble region like California or southern Florida, there's bad news… and really bad news.</p>
<p class="times">And they suggest that it is still way too early to go bargain hunting in these markets, although -- of course -- there is always the occasional deal around.</p>
<p class="times">The bad news is fresh market data published Monday night by real-estate Web site Zillow.com. They show prices, as expected, kept slumping through the end of last year.</p>
<p class="times">But the really bad news is that, even after a year of misery and falling prices, homes in many of these regions still aren't cheap. They remain wildly overvalued compared to average personal incomes.</p>
<p class="times">There is a strong long-term correlation between the two figures. And in many regions, house prices would still have to fall a very long way to get back into line.</p>
<p class="times">How far?</p>
<p class="times">Try around a third in Florida and Arizona -- and closer to 40% in California.</p>
<p class="times">Yes, from here. The long-term chart for California is shown below.</p>
<p class="times">Even if house prices stabilized, it would take a decade or more for rising incomes to catch up.</p>
<p class="times"><img alt="" src="http://s.wsj.net/public/resources/images/OB-BA440_ROI_CA_20080211164602.gif" />
</p>
<p class="times">The data on median house prices and per capita personal income in these states have been tracked by Karl Case, economics professor at Wellesley College. (He is one half of the duo behind the closely-watched Case-Schiller real estate index).</p>
<p class="times">Professor Case's numbers ran through the end of the third quarter. I decided to see how they might look today, using Zillow's data for the fourth quarter.</p>
<p class="times">The company hasn't posted statewide data, but the price falls across the many cities it tracks give a pretty strong picture. From these I assumed, for the sake of calculations, that California prices fell 8% last quarter from the third quarter, a huge number by historic measures but not out of line with Zillow's data. For Florida and Arizona I assumed declines of 5% and 5.5%. You could use other, more modest estimates for the recent declines: They won't change the outcomes much. I also assumed personal incomes in these states rose in line with recent and historic averages."</p>
<p class="times">The results? In all three markets, the prices are well off their peaks when compared to incomes. But they remain far above historic averages.</p>
<p class="times">Median prices in California peaked in 2006 at 13.3 times per capita incomes. Hard to believe, but true. They may be down now to about 11.1 times.</p>
<p class="times">But that's still way above the ground. Throughout most of the 80s and 90s they ranged between six and seven times incomes.</p>
<p class="times">Just to get down to seven times incomes, prices would have to fall 37% tomorrow.</p>
<p class="times">Those who bought at the peak of the cycle may be pinning their hopes instead on "incomes catching up" instead. But they had better be patient. Even if house prices stayed exactly where they are, it would take around 10 years for rising incomes to bring the ratios back into any sort of alignment.</p>
<p class="times">And it would take even longer before prices started to look very cheap again.</p>
<p class="times">That's based on average personal income growth of 4.6% a year in California and Florida and 4.2% in Arizona.</p>
<p class="times">Yes, these are projections and estimates. Time and chance will play their usual roles. And there will doubtless be different pictures within regions of the same state.</p>
<p class="times">Nonetheless the overall picture is pretty clear. And, if you are a homeowner in any of these regions, none too appealing.</p>
<p class="times"><strong>Write to</strong> Brett Arends at <a class="times" href="mailto:brett.arends@wsj.com">brett.arends@wsj.com</a> </p></strong>
lawyerliz_IHB
New member
A client of mine, who is 70, went over to ground zero of ground zero, Cape Coral, and found a house he liked. It originally had 100% financing of 2 mtges totalling $360,000. He offered $140 and then $150. The bank countered at 186, but I'm pretty sure they would have taken 180. 50 cents on the dollar. I warned him he'd better check the neighborhood for foreclosures, and that maybe 140 is too high. 1900 square feet pool, canal front granite etc, etc 140 is 39 cents on the dollar. He was thinking of puttin 50 k down and having a very low payment. I said,. yeah, but what if prices continue to decline?
Awgee, what's to like from their perspective? He offered to buy a stable and profitable segment of their business for a premium price (150% of the fees they received for underwriting municipal bonds) while leaving them the toxic CDO business.
Talk about throwing a drowning man a glass of water...
Talk about throwing a drowning man a glass of water...
awgee_IHB
New member
<p>Did anyone else see Wilbur Ross on MSNBC this morning? Boy, was he pissed.</p>
<p>He went off on Buffett for only offering to take the best part of the business for a song, and not being willing to address the CDO mess. But his, Wilbur Ross' deal, is gong to buy up MBIA and Ambac completely, thus saving the financial system from meltdown.</p>
<p>What a ______g hypocrite. What he fails to mention is that his deal involves the taxpayers paying for all the losses of the CDOs and guaranteeing Ross 20% to 30% for his "troubles".</p>
<p>And because the Amercian people are so convinced that the government can fix things and make something from nothing, Ross will probably get away with it.</p>
<p>He went off on Buffett for only offering to take the best part of the business for a song, and not being willing to address the CDO mess. But his, Wilbur Ross' deal, is gong to buy up MBIA and Ambac completely, thus saving the financial system from meltdown.</p>
<p>What a ______g hypocrite. What he fails to mention is that his deal involves the taxpayers paying for all the losses of the CDOs and guaranteeing Ross 20% to 30% for his "troubles".</p>
<p>And because the Amercian people are so convinced that the government can fix things and make something from nothing, Ross will probably get away with it.</p>
Awgee, I can't see why anyone would be surprised that Buffett only wants to buy the financially sound part of MBI and ABK. This is a case of life imitating The Simpsons. From the episode with Bill Gates:
<pre>Bill Gates: Mr. Simpson?
Homer: You don't look so rich...
Bill Gates: Don't let the haircut fool you, I am exceedingly wealthy.
Homer: [quietly] Get a load of the bowl-job, Marge!
Bill Gates: Your Internet ad was brought to my attention, but I can't figure out what, if
anything, Compuglobalhypermeganet does, so rather than risk competing with
you, I've decided simply to buy you out.
% Homer and Marge quietly discuss this proposal.
Homer: I reluctantly accept your proposal!
Bill Gates: Well everyone always does. Buy 'em out, boys!
[Gates' lackeys trash the room.]
Homer: Hey, what the hell's going on!
Bill Gates: Oh, I didn't get rich by writing a lot of checks! [insane
laughter]</pre>
<pre>Bill Gates: Mr. Simpson?
Homer: You don't look so rich...
Bill Gates: Don't let the haircut fool you, I am exceedingly wealthy.
Homer: [quietly] Get a load of the bowl-job, Marge!
Bill Gates: Your Internet ad was brought to my attention, but I can't figure out what, if
anything, Compuglobalhypermeganet does, so rather than risk competing with
you, I've decided simply to buy you out.
% Homer and Marge quietly discuss this proposal.
Homer: I reluctantly accept your proposal!
Bill Gates: Well everyone always does. Buy 'em out, boys!
[Gates' lackeys trash the room.]
Homer: Hey, what the hell's going on!
Bill Gates: Oh, I didn't get rich by writing a lot of checks! [insane
laughter]</pre>