Headlines...

NEW -> Contingent Buyer Assistance Program
There's been a lot of analysis on Calculated Risk about this.



Bottom line is, tho it does happen, it is largely an urban myth.



It is far easier and socially acceptable to say that you are walking

away because you are underwater, which is not your fault, and the

mean old bank shouldn't have given you the loan (the later being

perfectly true), than admitting that you are a loser who can't make

the payment.



And I strongly suspect that these walkers don't actually walk until

the sheriff is about to bust down their door. Walking simply

means you stop making your mtg payment while you still really

could. And, as pointed out by a blogster, "really could", could mean

anything from cutting out dinners out and brown bagging lunch

to selling your children into slavery after pulling all your money from

your 401K.



Every situation is different, of course.



And gosh, these people believed in FICO scores as if it were a

belief in god.
 
Alright 2501st post on this topic!!!



I thought the market had bottomed out a few weeks ago. . .wasn't it a good time to buy?



<a href="http://www.cnbc.com/id/24255022">http://www.cnbc.com/id/24255022</a>



"The pace of existing home sales in the United States fell in March to a 4.93 million-unit annual rate, the National Association of Realtors said on Tuesday in a report that showed the U.S. housing market continues to struggle



Economists polled by Reuters were expecting home resales to fall to a 4.92 million-unit pace, off from the February rate of 5.03 million that was left unchanged.



The inventory of homes for sale swelled by 40,000 to 4.06 million homes or a 9.9 months' supply at the current sales pace. Meanwhile, the median national home price declined 7.7 percent from a year ago to $200,700."
 
OUCH...



<a href="http://mortgage.freedomblogging.com/2008/04/22/california-homes-entering-foreclosure-hit-record-high/">http://mortgage.freedomblogging.com/2008/04/22/california-homes-entering-foreclosure-hit-record-high/</a>



California homes entering foreclosure hit record high

April 22nd, 2008 ? Post a Comment ? posted by Matt Padilla, Register Reporter and Blogger



The number of California homes going into foreclosure jumped in the first quarter to the highest level in at least 15 years, amid continued softening in the housing and mortgage markets, reported DataQuick on Tuesday.



Banks recorded 113,676 default notices in Q1, up 39.4 percent from the previous quarter, and up 143.1 percent from a year ago. A notice of default generally is filed after a borrower misses at least three monthly payments. Last quarter?s number of defaults was the highest in DataQuick?s records, which go back to 1992.
 
Ouch is right. As I commented there, the scary thing is virtually every loan exploding now was from 2005-2006 and was either an 80/20 no down deal or a very low downpayment was used. The other class of foreclosure right now are properties with excessive re-fies or HELOC abuse over time. These loans alone were enough to push foreclosure numbers to record levels.



What happens if the economy gets worse and people who bought with a normal loan and a legitimate downpayment a while ago starting to become unable to make their payments because of the usual job loss/death/divorce? What happens to the foreclosure numbers then?
 
<blockquote> Realtors in many U.S. states say lenders are demanding excessively high prices before allowing distressed borrowers to offload their homes in "short sales," making the housing crisis worse.



In a short sale, a borrower dumps the home at below-market value and the bank forgives the rest of the debt. The borrower's credit rating is hurt but for less time than in a foreclosure. Such sales have been touted by banks as a way out for homeowners unable to pay their mortgages.



But Realtors complain many lenders harm their own interests by refusing to accept bids below internal targets, even though that may eventually force lenders to sell homes in foreclosure, where bids are usually far lower.



In addition, many lenders simply do not have the people or processes in place to handle a swelling tide of short sales around the country, Realtors say. As a result, lenders are taking far too long to evaluate offers, leading many would-be buyers to walk away from deals.</blockquote>


<a href="http://www.reuters.com/articlePrint?articleId=USN2231576420080422">Realtors complain short-sale process is failing</a>
 
[quote author="JNinWB" date=1208920509]<blockquote> Realtors in many U.S. states say lenders are demanding excessively high prices before allowing distressed borrowers to offload their homes in "short sales," making the housing crisis worse.



In a short sale, a borrower dumps the home at below-market value and the bank forgives the rest of the debt. The borrower's credit rating is hurt but for less time than in a foreclosure. Such sales have been touted by banks as a way out for homeowners unable to pay their mortgages.



But Realtors complain many lenders harm their own interests by refusing to accept bids below internal targets, even though that may eventually force lenders to sell homes in foreclosure, where bids are usually far lower.



In addition, many lenders simply do not have the people or processes in place to handle a swelling tide of short sales around the country, Realtors say. As a result, lenders are taking far too long to evaluate offers, leading many would-be buyers to walk away from deals.</blockquote>


<a href="http://www.reuters.com/articlePrint?articleId=USN2231576420080422">Realtors complain short-sale process is failing</a></blockquote>
Looks like the lenders don't believe the Realtors, either.
 
Yale?s Shiller: U.S. Housing Slump May Exceed Great Depression

http://blogs.wsj.com/developments/2...us-housing-slump-may-exceed-great-depression/



Yale University economist Robert Shiller, pioneer of Standard & Poor?s/Case-Shiller home-price index, said there?s a good chance housing prices will fall further than the 30% drop in the historic depression of the 1930s. Home prices nationwide already have dropped 15% since their peak in 2006, he said.



?I think there is a scenario that they could be down substantially more,? Mr. Shiller said during a speech at the New Haven Lawn Club.
 
It is VERY HARD to get a short sale approved. The lender is not the only party in this transaction. These banks are just servicing the loan most of the times. The mortgage is tangled up in God knows how many other portfolios. It isn't just as simple as telling the bank to sell now.
 
<a href="http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=TGT:US&sid=a1QsfMUcMs4w">Target writes off 8.1% of credit card debt in March.</a>



Woah...



But don't worry; it's already priced in!!!
 
<a href="http://money.cnn.com/2008/04/22/real_estate/no_help_for_most_borrowers/index.htm?postversion=2008042217">No help for 70% of subprime borrowers</a>

<blockquote>Seven out of 10 seriously delinquent subprime mortgage borrowers are still not getting the help they need to keep their homes, according to a report released Tuesday by state officials working to stem the foreclosure crisis.



"We're still way behind," said Iowa Attorney General Tom Miller, who helped form the State Foreclosure Prevention Working Group, a coalition formed last year by 11 state attorneys general and bank regulators.



The coalition is working with lenders and companies that service mortgages to try to keep people from losing their homes. It drew its statistics from 13 of the 20 major servicer companies, which handle about 58% of all subprime loans.



More than 1 million of those loans, or nearly 25% of the total, were delinquent as of Jan. 31. And foreclosure proceedings have begun on 300,000 of them - an 8% increase since October.</blockquote>
 
At this point, it is basically piling on a dead horse. . . heck, I need the post to get my McMansion







<a href="http://www.cnbc.com/id/24268828">http://www.cnbc.com/id/24268828</a>



"U.S. mortgage applications plunged last week, largely reflecting a drop in demand for home refinancing loans as interest rates surged, an industry group said Wednesday.



The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ended April 18 fell 14.2 percent to 637.6.



The U.S. housing market is currently suffering one of the worst downturns in its history.



Last week's drop in demand may indicate what is in store for the hard-hit sector this spring, which traditionally is the peak of the home-buying season.



Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.04 percent, up 0.30 percentage point from the previous week."
 
IrvineRenter - is that you??!?



<a href="http://seekingalpha.com/article/73552-the-impending-mortgage-crisis">The Impending Mortgage Crisis</a>
 
[quote author="EvaLSeraphim" date=1208987865]Shhhhh. :coolsmirk:</blockquote>


I don't think it's really him - I was joking about that.



But, I think the article is in the same vein as IHB, and it takes material from IHB (with attribution).
 
No, this is IrvineRenter.
<fieldset class="gc-fieldset">
<legend> Attached files </legend> <a href="http://www.talkirvine.com/converted_files/images/forum_attachments/34_FgdSxrkbwpJys6ZZ1lym.jpg"><img src="http://www.talkirvine.com/converted_files/images/forum_attachments/34_FgdSxrkbwpJys6ZZ1lym.jpg" class="gc-images" title="irvine-renter.jpg" style="max-width:300px" /></a> </fieldset>
 
<strong>Shiller: Housing slump may exceed Depression</strong>

Bailouts will be needed so millions don?t lose homes, top economist says



<a href="http://www.msnbc.msn.com/id/24257182/">http://www.msnbc.msn.com/id/24257182/</a>



note: that title is REALLY misleading. shiller is saying housing prices may decline greater than they did during the GD. the title suggests the housing slump will lead us into a depression worse than the GD.
 
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