More housing woes, good credits are defaulting.

[SSSnail]

Shit storm eminent.

A record 12 percent of homeowners with a mortgage were behind on their payments in the first quarter, the Mortgage Bankers Association said Thursday. And the trend is predicted to continue until the end of next year, about six months after unemployment is expected to peak.

Well, more and more will surface as people loses their jobs. A lot of these people are draining their savings too, just to stay afloat. This is a problem that seems to be forgotten amidst all the hoopla regarding GM and other things.

A lot of experts predict that we won't see the worst of it until next year, so how come people think that the economy will recover this year?

 

[Slew Foot]

Originally posted by: SSSnail
Shit storm eminent.

A record 12 percent of homeowners with a mortgage were behind on their payments in the first quarter, the Mortgage Bankers Association said Thursday. And the trend is predicted to continue until the end of next year, about six months after unemployment is expected to peak.

Well, more and more will surface as people loses their jobs. A lot of these people are draining their savings too, just to stay afloat. This is a problem that seems to be forgotten amidst all the hoopla regarding GM and other things.

A lot of experts predict that we won't see the worst of it until next year, so how come people think that the economy will recover this year?

Hope and change

 

[bamacre]

Originally posted by: SSSnail
A lot of experts predict that we won't see the worst of it until next year, so how come people think that the economy will recover this year?

Because they follow the idea that money does grow on trees, that you can just print capital.

 

[techs]

But, but it was only the stupid people who took out sub prime loans that are in trouble.
I know that for a fact, because Rush told me so.

 

[StageLeft]

I like how the article said even the "best of the best", at least on cnn money. If that were the case, they'd not be in the tiny minority, and rather in the great majority who are still paying their mortgages.

And yet of course I realize tht many of us could be slammed by something like this. There are certainly ways to prepare by maximizing savings and not picking now to go on vacations and what not, but sometimes sh*t happens.

 

[AFMatt]

I was talking to a friend about this at work today. Who wants to wager some sort of legislation will be drafted to allow people who forclosed a waiver and be able to buy again sooner than the normal 5-7 years?
It will be hailed as a rescue for those who were screwed by shady mortgages, those who lost their jobs in these hard times, and at at the same time a plan that will rebuild our crumbling housing market.

 

[soccerballtux]

Originally posted by: AFMatt
I was talking to a friend about this at work today. Who wants to wager some sort of legislation will be drafted to allow people who forclosed a waiver and be able to buy again sooner than the normal 5-7 years?
It will be hailed as a rescue for those who were screwed by shady mortgages, those who lost their jobs in these hard times, and at at the same time a plan that will rebuild our crumbling housing market.

...and it will remove any remnant of personal responsibility that was left in the equation...more importantly, it will remove any disincentive to being financially unwise.

 

[charrison]

Originally posted by: Skoorb
I like how the article said even the "best of the best", at least on cnn money. If that were the case, they'd not be in the tiny minority, and rather in the great majority who are still paying their mortgages.

And yet of course I realize tht many of us could be slammed by something like this. There are certainly ways to prepare by maximizing savings and not picking now to go on vacations and what not, but sometimes sh*t happens.

OR maybe people are just realzing they can default and uncle sam is there to bail them out...

 

[Siddhartha]

Originally posted by: SSSnail
Shit storm eminent.

A record 12 percent of homeowners with a mortgage were behind on their payments in the first quarter, the Mortgage Bankers Association said Thursday. And the trend is predicted to continue until the end of next year, about six months after unemployment is expected to peak.

Well, more and more will surface as people loses their jobs. A lot of these people are draining their savings too, just to stay afloat. This is a problem that seems to be forgotten amidst all the hoopla regarding GM and other things.

A lot of experts predict that we won't see the worst of it until next year, so how come people think that the economy will recover this year?

They are saying that the aggregate economy will be out of recession in the 4th quarter of this year or 1st quarter of 2010.

 

[Kwatt]

Originally posted by: charrison

Originally posted by: Skoorb
I like how the article said even the "best of the best", at least on cnn money. If that were the case, they'd not be in the tiny minority, and rather in the great majority who are still paying their mortgages.

And yet of course I realize tht many of us could be slammed by something like this. There are certainly ways to prepare by maximizing savings and not picking now to go on vacations and what not, but sometimes sh*t happens.

OR maybe people are just realzing they can default and uncle sam is there to bail them out...

I have read for years that people should run their personal finances like a business.
I guess some finally are. I kinda wish they would have chosen a business other than a "Global Financial Corporation" to emulate.


...

 

[StageLeft]

Originally posted by: AFMatt
I was talking to a friend about this at work today. Who wants to wager some sort of legislation will be drafted to allow people who forclosed a waiver and be able to buy again sooner than the normal 5-7 years?
It will be hailed as a rescue for those who were screwed by shady mortgages, those who lost their jobs in these hard times, and at at the same time a plan that will rebuild our crumbling housing market.

I find that very plausible.

They are saying that the aggregate economy will be out of recession in the 4th quarter of this year or 1st quarter of 2010.

We might be out of the recession in a technical sense, like the economy is no longer shrinking, but to get back to where it was in a real manner will take a lot longer than that! We haven't even hit bottom, so it's going to take a while once we do to claw back to where we were.

 

[charrison]

Originally posted by: Skoorb

Originally posted by: AFMatt
I was talking to a friend about this at work today. Who wants to wager some sort of legislation will be drafted to allow people who forclosed a waiver and be able to buy again sooner than the normal 5-7 years?
It will be hailed as a rescue for those who were screwed by shady mortgages, those who lost their jobs in these hard times, and at at the same time a plan that will rebuild our crumbling housing market.

I find that very plausible.

They are saying that the aggregate economy will be out of recession in the 4th quarter of this year or 1st quarter of 2010.

We might be out of the recession in a technical sense, like the economy is no longer shrinking, but to get back to where it was in a real manner will take a lot longer than that! We haven't even hit bottom, so it's going to take a while once we do to claw back to where we were.

The bottom has been hit and things are starting to rebound. But it will take some time to get back to where we were. Housing prices in those overheated markets will not every recovered, unless there is another bubble.

 

[Mursilis]

Originally posted by: techs
But, but it was only the stupid people who took out sub prime loans that are in trouble.
I know that for a fact, because Rush told me so.

You can't disagree that stupidity is rampant in the U.S. Haven't you questioned the intelligence of Bush voters on many occasions, and he got 62 million votes last time he ran for anything!

 

[Starbuck1975]

You can't disagree that stupidity is rampant in the U.S. Haven't you questioned the intelligence of Bush voters on many occasions, and he got 62 million votes last time he ran for anything!

I make sure to pass that on to all of the white collar people in my neighborhood with foreclosure notices on their doors and Obama stickers on their 5-series BMWs.

 

[JeffreyLebowski]

Originally posted by: Starbuck1975

You can't disagree that stupidity is rampant in the U.S. Haven't you questioned the intelligence of Bush voters on many occasions, and he got 62 million votes last time he ran for anything!

I make sure to pass that on to all of the white collar people in my neighborhood with foreclosure notices on their doors and Obama stickers on their 5-series BMWs.

Oh how I'd love to laugh in their face and hand them some change.

 

[fskimospy]

Originally posted by: Starbuck1975

You can't disagree that stupidity is rampant in the U.S. Haven't you questioned the intelligence of Bush voters on many occasions, and he got 62 million votes last time he ran for anything!

I make sure to pass that on to all of the white collar people in my neighborhood with foreclosure notices on their doors and Obama stickers on their 5-series BMWs.

If you think their houses are being foreclosed on because of anything that Obama has done, you're a moron.

 

[Slew Foot]

Originally posted by: JeffreyLebowski

Originally posted by: Starbuck1975

You can't disagree that stupidity is rampant in the U.S. Haven't you questioned the intelligence of Bush voters on many occasions, and he got 62 million votes last time he ran for anything!

I make sure to pass that on to all of the white collar people in my neighborhood with foreclosure notices on their doors and Obama stickers on their 5-series BMWs.

Oh how I'd love to laugh in their face and hand them some change.

You already are, from your pocketbook

 

[charrison]

Originally posted by: eskimospy

Originally posted by: Starbuck1975

You can't disagree that stupidity is rampant in the U.S. Haven't you questioned the intelligence of Bush voters on many occasions, and he got 62 million votes last time he ran for anything!

I make sure to pass that on to all of the white collar people in my neighborhood with foreclosure notices on their doors and Obama stickers on their 5-series BMWs.

If you think their houses are being foreclosed on because of anything that Obama has done, you're a moron.

Maybe having the govt bail you out is encouraging foreclure?

 

[Starbuck1975]

If you think their houses are being foreclosed on because of anything that Obama has done, you're a moron.

No I was not suggesting it had anything to do with Obama. There have been a disturbing number of trends of late attempting to correlate conservatism with stupidity. The premise of the comment I responded to is that stupidity is rampant in the U.S., using Bush voters as the proof positive of this premise.

The housing bubble, and subsequent crash, has nothing to do with political ideology. It has everything to do with greed...liberals and conservatives alike quite stupidly and enthusiastically dived into that hole, and both now expect the government to help them out.

 

[sandorski]

Originally posted by: AFMatt
I was talking to a friend about this at work today. Who wants to wager some sort of legislation will be drafted to allow people who forclosed a waiver and be able to buy again sooner than the normal 5-7 years?
It will be hailed as a rescue for those who were screwed by shady mortgages, those who lost their jobs in these hard times, and at at the same time a plan that will rebuild our crumbling housing market.

Something like that wouldn't be a bad idea. So many people are being negatively affected that keeping them out of the Market may in fact slow down a Recovery.

 

[sportage]

Reality check...
Banks are getting bailouts.
Banks STILL are not working with borrowers.
Nothing has changed. Nothing at all.

PS.
And that $8000 credit for first time buyers?
Your $8000 is in the mail, or will be, in like 8-12 months.

Nothing has changed...

 

[AFMatt]

I wonder how much of that 12% is people defaulting intentionally and throwing themselves into foreclosure because they home they bought for $500k is now only worth $250k.
One of my coworkers friends here in Cali is seriously considering it. He bought a house 3 years ago for $360k and today it is valued at $165k. He said pride is the only thing keeping him paying.

 

[Vic]

Originally posted by: charrison

Originally posted by: eskimospy

Originally posted by: Starbuck1975

You can't disagree that stupidity is rampant in the U.S. Haven't you questioned the intelligence of Bush voters on many occasions, and he got 62 million votes last time he ran for anything!

I make sure to pass that on to all of the white collar people in my neighborhood with foreclosure notices on their doors and Obama stickers on their 5-series BMWs.

If you think their houses are being foreclosed on because of anything that Obama has done, you're a moron.

Maybe having the govt bail you out is encouraging foreclure?

That is some potent crack you've been hitting on...

 

[Vic]

Originally posted by: AFMatt
I wonder how much of that 12% is people defaulting intentionally and throwing themselves into foreclosure because they home they bought for $500k is now only worth $250k.
One of my coworkers friends here in Cali is seriously considering it. He bought a house 3 years ago for $360k and today it is valued at $165k. He said pride is the only thing keeping him paying.

Yeah, like a 400 credit score, legal fees, daily phone calls from debt collectors, and having to move back into a crummy apartment have nothing to do with it...

 

[Vic]

Originally posted by: sportage
Reality check...
Banks are getting bailouts.
Banks STILL are not working with borrowers.
Nothing has changed. Nothing at all.

PS.
And that $8000 credit for first time buyers?
Your $8000 is in the mail, or will be, in like 8-12 months.

Nothing has changed...

Banks are working with borrowers. Their loss mitigation and loan workout efforts are at all-time record highs and only getting bigger. A big problem now is that a lot of borrowers aren't working with their banks, but are using the present situation as an excuse to try to live in their homes for free, and it's only the threat of possible foreclosure that keeps those particular borrowers paying (and often not even then).