From the Wall Street Journal:
Lenders Tighten Standards,
Pare Loans in Face of Debt
By MICHAEL CORKERY, RANDALL SMITH and KATE KELLY
August 2, 2007; Page C1
Banks and securities firms are trimming loans, especially to companies tied to the mortgage market. But it is a balancing act: Cutting back too far could make matters worse by accelerating corporate bankruptcies and causing more turmoil in financial markets.
Banks facing the prospect of taking on billions of dollars in buyout-related debt are starting to trim lending to companies that need to refinance loans or restructure their balance sheets.
As banks rein in riskier lending, companies could find themselves unable to refinance loans coming due or to overhaul their businesses. Some companies may be forced to seek bankruptcy protection, a development that would exacerbate bond-market turbulence.
…
If banks get skittish, Mr. Snider said they could reduce the size of the credit lines, as they did with Beazer, or require the credit lines to be secured. Most of them are unsecured. Analysts are watching what happens when two other big home builders, Los Angeles-based KB Home and Standard Pacific Corp., of Irvine, Calif., approach their banks to renegotiate their credit lines in the coming weeks.Banks also are stiffening lending standards and becoming more aggressive in issuing margin calls, or requests for additional cash or collateral, from borrowers.
These moves are affecting a variety of clients, according to market participants. Hedge funds that clear trades and borrow money from prime-brokerage units of Wall Street firms are encountering stricter terms, they said, as are those in “repo,” or repurchase agreements, short-term loans from banks that often are used to finance bond investments.
Duck Says:
August 1st, 2007 at 8:48 pm
Rich,
I just raised my asking price by $30,000. Does this mean that you will be moving to North Carolina?
No. It means you’ll definitely be staying in Cliffside Park.
Rich
Ok, I’ll get it started. Where the hell you been?
the data is a week old but it has nice breakdown by region.
http://www.reuters.com/article/marketsNews/idUKN2336319420070725?rpc=44
hehe,
Thurs AM open house. They are trying anything/everything.
3-
Thursday AM open house and its not a holiday? That’s odd to me.
“lostinny Says:
August 2nd, 2007 at 8:36 am
3-
Thursday AM open house and its not a holiday? That’s odd to me.”
Seems like a waste of time.
I saw one last week on a Tuesday in the afternoon I think.
Desperate situations require desperate measures!
“HEHEHE Says:
August 2nd, 2007 at 8:02 am
Ok, I’ll get it started. Where the hell you been?”
If you’re referring to JB, he’s probably still in Europe on vacation.
He’s moving to europe, the Euro is stronger, the dollar chows.
for some good laugh,
http://www.realestatehumor.com/index.php?inl_theme=default&t=sub_pages&cat=4
OT, but since today’s article is from WSJ, I was wondering whether the sale of WSJ to Murdoch & Co. will turn WSJ into a Fox fruitcake kinda thing…no news, just comedy.
Just wondering, since the WSJ is one of the last remaining pieces of journalism worth reading, in the midst of all the other trash that is produced every day in the name of journalism.
Another subprime lender raises concern
Accredited Home Lenders can’t assure its ability to stay in business due to rising losses and mounting defaults.
August 2 2007: 10:03 AM EDT
NEW YORK (Reuters) — Accredited Home Lenders Holding Co., a subprime mortgage lender in the process of being sold, raised concern Thursday about its ability to stay in business as the U.S. housing market slumps.
In its delayed 2006 annual report filed with the Securities and Exchange Commission, Accredited said that because of adverse conditions in the subprime mortgage industry, it could not give assurance that it would continue to operate as a “going concern.”
Here is an even better open house. There is a house for sale near me two blocks from the train that has been having open houses from 6:30am to 8:30am and 6pm to 7pm to try and catch the folks who drive by on the way to the train.
Another guy is have a wine lottery at his open house this weekend, eveyone who attends his two to four pm open house gets a free lottery ticket to get an expensive bottle of wine and at four pm he would pull the winning ticket. The winner must be present to win.
dreamtheaterr Says:
August 2nd, 2007 at 9:59 am
OT, but since today’s article is from WSJ, I was wondering whether the sale of WSJ to Murdoch & Co. will turn WSJ into a Fox fruitcake kinda thing…no news, just comedy.
Just wondering, since the WSJ is one of the last remaining pieces of journalism worth reading, in the midst of all the other trash that is produced every day in the name of journalism.
Yan: It was a big point of contention from the Bankroft family.
FWIW there was an editorial yesterday.
By L. GORDON CROVITZ
August 1, 2007; Page A14
[edit]
Readers can rely on this: The same standards of accuracy, fairness and authority will apply to this publication, regardless of ownership. Our reporters and editors feel an especially strong obligation because the Journal, from the beginning, redefined financial and business journalism.
[edit]
Why do we consider the integrity of business and financial journalism to be even more important than for many forms of general-interest news?
Our readers must be able to trust that our facts are right. Livelihoods depend on it, and capital is deployed because of it. Even beyond that, our readers must also be able to trust that the analysis, perspective and context we apply to facts — forms of interpretive journalism our readers expect, but few beyond the Journal can practice — reflect only the honest assessment of our journalists. Readers equally must trust that our opinions, agree or disagree, reflect only the honest view of Journal editorial writers, rooted in a consistent set of principles that the Journal has adhered to for decades.
Any buyer of Dow Jones knows that the foundation of value is the trust of readers in the brands and the journalism. Indeed, the first topic discussed by News Corp. Chairman and Chief Executive Rupert Murdoch with the Bancroft family in their negotiations was the importance of accurate and independent journalism. Mr. Murdoch told the Bancrofts that “any interference — or even hint of interference — would break the trust that exists between the paper and its readers, something I am unwilling to countenance. Apart from breaching the public’s trust, it would simply be bad business.”
To this end, News Corp. and the Bancrofts agreed on standards modeled on the long-standing Dow Jones Code of Conduct. These include:
• Facts are accurate and fairly presented;
• Analyses represent the publications’ best independent judgments rather than their preferences, or those of their owner, sources, advertisers or information providers;
• Opinions represent only the applicable publication’s own editorial philosophies centered around the core principle of “free people and free markets”;
• There are no hidden agendas in any journalist undertakings; and
• Accuracy and fairness extends to coverage of any real or perceived business interests of News Corp.
[edit]
“Generations of Wall Street Journal editors and reporters have had a covenant with our readers to provide fair and accurate reporting on the many subjects we cover every day. Our priority as editors is earning and keeping the trust of the world’s most demanding readers by delivering the most essential news and analysis.
[edit]
Also, some of the criticism of News Corp. has suggested that honest journalism cannot be done with an owner whose political views are often considered to be conservative. This reflects a bias of its own that I hope readers of all political views will reject.
[edit]
From today’s WSJ:
http://online.wsj.com/article_print/SB118595206198884573.html
Murdoch’s Next Focus:
Business-News Battle
By MARTIN PEERS
August 2, 2007; Page A2
News Corp. Chairman Rupert Murdoch, having finalized a deal to buy The Wall Street Journal’s publisher, Dow Jones & Co., is expected to turn his attention to figuring out his strategy for each of its businesses.
Among the issues Mr. Murdoch will focus on initially is how to shore up Dow Jones Newswires, whose business faces the prospect of tougher competition as a result of the pending merger of Reuters Group PLC and Thomson Corp., say people close to News Corp. Another issue he will be pondering: How to use the Journal to buttress News Corp.’s planned business-news TV channel, given restraints imposed by the Journal’s existing content-sharing agreement with General Electric Co.’s CNBC.
News Corp. and Dow Jones signed a definitive agreement for the deal, which they valued at $5.6 billion, including debt, early yesterday, hours after the boards of each company approved the sale Tuesday. News Corp. is offering $60 a share for Dow Jones, payable in cash, though it will offer securities exchangeable into News Corp. stock for up to 10% of Dow Jones shares. Dow Jones shares were up 1.3%, or 72 cents, to $58.10 in 4 p.m. New York Stock Exchange trading yesterday. News Corp. shares rose 16 cents to $22.82.
Two hurdles must be cleared before the deal can close: shareholder and antitrust approval. As News Corp. has support from Dow Jones’s controlling Bancroft family members with 37% of the company’s voting power, obtaining majority shareholder approval at a meeting later this year isn’t expected to be difficult. There is a chance News Corp. may win more family votes to give it more of a mandate for the acquisition.
Dow Jones is down near me and I know a lot of people who work there.
A lot of higher ups are shopping their resumes. One that I know of (executive, our kids in same preschool and I am friends with his wife) has enough stock in the company that he will sell off that he can comfortably sit on his behind for a couple of years ’till the right job comes along.
The employees are definitely worried.
“Also, some of the criticism of News Corp. has suggested that honest journalism cannot be done with an owner whose political views are often considered to be conservative. This reflects a bias of its own that I hope readers of all political views will reject.”
Ha, I would say that the proof is in the pudding. Being conservative isn’t incompatible with honest journalism, but being Rupert Murdoch is. What a disengenous statement and wholly in keeping with the Murdoch style of deflecting direct criticism and painting it as criticism of an entire group.
One that I know of (executive, our kids in same preschool and I am friends with his wife) has enough stock in the company that he will sell off that he can comfortably sit on his behind for a couple of years ’till the right job comes along.
So executives can afford to have year-long gaps on their resume? Gaps that long can be career killers when you’re as far down the food chain as I am.
CNN Money:
Mortgage rates ease for second straight week
30-year rates fall to 6.68 percent after subprime fallout drives investors into Treasurys, sending mortgage rates down, says Freddie Mac.
http://money.cnn.com/2007/08/02/real_estate/mortgage_rates/index.htm?postversion=2007080210
Bigger bubbles in U.K.:
Bloomberg
U.K. House Prices Increase the Most in Three Months (Update2)
http://www.bloomberg.com/apps/news?pid=20601068&sid=aOekAZP8KeCY&refer=economy
Most Executives have LTDC plans, restricted Stock, Options, pre-determined serverence packages in the event of a change in control. Some even have the consulting period post merger worked into the contract.
Even low level mid-managment (250K) at Chase when I was there they paid out four weeks per year severance, up to 52 weeks and all unvested stock/options that you would lose if you quit would stay as if you are an employee, when they vest you get them, of course you get no more.
NYSE gave a year’s severance to employees and kept them on the books with medical, they paid the regular check for a year until you took a full time job and then it stopped.
I know tons of career women and men over 55 who did the Irish Jig out the door when they got laid off. Once people at low levels or new in the door get it, but hey when you leave your pants around the ankles too long you may get screwed.
Chase once did a study on the Layoffs from their last merger. Thousands of people were “let go” but when they did the study it turns out not one single person was fired. It was all dead wood or people wanted to switch careers, go back to school, be a stay at home Mom or retire or was way over salaried and would have been canned anyhow. Hard workers who want to work who are not overpaid are rarely let go in a merger. I know 50 union people want to hit me with rotten fruit but hey I have been though dozens of mergers as a consultant and three as an employee.
why its so quiet here? i guess everyone went out to the thursday open house
Lisoosh (17) Beat me to it. Another patented News Corp. strawman argument: “Those meanies who say News Corp is biased are calling conservatives liars!”
And, Dreamtheater, if Paul Gigot’s OpinionJournal pages are worth anything (big “if”), then it’s as an example of what Murdoch plans to do with the rest of the publication. Won’t comment on the general level of journalism in the rest of the paper. Suffice to say, I don’t hold WSJ in as high regard as you do.
http://www.comedycentral.com/motherload/player.jhtml?ml_video=90948&ml_collection=&ml_gateway=&ml_gateway_id=&ml_comedian=&ml_runtime=&ml_context=show&ml_origin_url=%2F&ml_playlist=&lnk=&is_large=true
I just like it when people post the massive dip in asking prices. That’s great.
Also, the Troll tried to say that everyone is taking their house off the market because they won’t be able to cash out … that’s laugh.
As usual, the guy has zero proof/linkage to back it up. Inventory is rising everywhere, but he says otherwise. Anyway …
Question … anyone have MLS access in Virginia?
anyone have MLS access in Virginia?
virginiamls.com
sorry, not the actual MLS listings though
I also saw an open house going on yesterday.
A developing trend?
sync:
“So executives can afford to have year-long gaps on their resume? Gaps that long can be career killers when you’re as far down the food chain as I am.”
I didn’t say that he would do that, just that he could afford to – i.e. there is no financial panic on his part. He actually started discretely networking the moment Murdoch made his initial proposal, he is a long term journo who rose through the ranks and does not want to deal with News corp policies.
Jamey Says:
August 2nd, 2007 at 12:17 pm
Won’t comment on the general level of journalism in the rest of the paper. Suffice to say, I don’t hold WSJ in as high regard as you do.
Jamey: Was there ever a question that the Editorial Section of the Journal is a joke? That said, I think the fear is in what form will the bias seep into the other sections.
An update on the house that’s been up for sale next to me, since the fall 0f ’06, and the OLP of 515K down to 460K and counting…
They just took it off the market after renting it to a cousin of theirs.
Wouldn’t they have been better off selling it for whatever they could, with all this depreciation going on?
The more senior the job, the longer the expected period of time to find commensurate employment. That’s at least part of the rationale for giving bloated “severence packages”, also retention through the transition period. In many instances, these packages are “market”, so regardless of how they appear out od context on an absolute basis, they are reasonable due to opportunity cost.
Tried posting this with a link, but the filter keeps removing it.
Just to say that the UK Financial Times has a story about a government bailout of a bank over subprime in Germany.
Your point, CF, is what?
I’ve no doubt that there will be a rush to polarize the rest of the Journal along the lines of Fox News. Murdoch purchased the brand to lend an aura of credibility to the soon-to-launch Fox News Business channel.
Was there ever a question that OpinionJournal is a joke, you ask? I’ve seen the likes of Gigot, Frum, Noonan, and even that cement head, Greg Gutman, entertained very seriously because their OpinionJournal screed carried the WSJ “imprimatur.” Remember please what Twain wrote, that a lie can get half way across the globe before the truth has had the chance to put on its pants.
You prolly read some form of WSJ regularly. But for the many more who do not, the distinction between Gigot’s fever swamp and the rest of the paper doesn’t matter a hell of a lot.
And please don’t think that Murdoch’s people didn’t take stock of that state of affairs when they got out their checkbooks…
Lots of expired listings falling off the njmls yesterday and today, and new ones still coming on.
Also seeing some of them coming back as rentals. Let me get this straight, you could not sell the POS cape, colonial, ranch, undetermined, at 500K, but perhaps us cooties infested renters might wnat to rent it for 4K a month? Too funny.
Every media outlet caters to an audience. Murdoch is no different than any other media mogul, except that maybe he has a better sense of how ordinary people like to have their news presented.
My guess is that he understands that Dow Jones produces niche publications and he won’t want to offend that niche by dumbing it down. The WSJ and Barrons will lend credibility to the Fox Business venture– which in my estimation can’t be any dumber than CNBC.
I thought this was funny from yesterday’s post:
“Hou53 Says:
August 1st, 2007 at 8:56 pm
We have raised our price, we have lowered our price, nothing works. We even painted.
”
Wow, they even painted!
“So tell me what are these condos at The Peninsula selling for being as they’re so “affordable”.
$400,000-$1.3 million. You get what you pay for: you are DIRECTLY next door to a superfund and only a small number of the units have NYC views. Compared to newer developments, this place is supposed to be a “bargain.”
Could anyone provide recent numbers for sales of homes over $1 million in Milburn?
Thanks muchly,
ABA
I guess the Housing fatigue is setting in. I am noticing in last month or so large number of listing coming to Craigslist. Many of these listings are actually put up by Realtor. I guess Realtor.com is not getting needed response.
#35
these idiots basically want someone to pay their mortgage for them. they have no idea what comparable rents are
I do not waste my time going to open houses for under $3 million. This is the type of open houses I go to:
Love the Party, Buy the House?
Did you hear about the elegant shindig last week in Saddle River where a $14 million spec house is for sale? Champagne and brie! Live chamber music. Even valet parking.
http://www.nytimes.com/2007/02/04/realestate/04njzo.html?ex=1186200000&en=ff8abef06bea7857&ei=5070
“rent it for 4K a month? Too funny.”
These are springing up like mushrooms near where I live. But it does provide a helpful reminder for us filthy renters about the size of the monthly nut if you want to actually buy these places.
I am willing to bet that everyone who went to that open house in Saddle River was a fake who could not afford to buy the house. I went to one in Saddle RIver a while ago for $6 million. Nobody there was a legitimate buyer. There was one person who was nothing more than a nosey neighbor.
#41 skeptic: I rent a refurbished house (not apartment) for less than half of what these clowns are asking for rent. You just have to laugh.
“But it does provide a helpful reminder for us filthy renters about the size of the monthly nut if you want to actually buy these places.”
How do you know the owners are paying $4k a month? Perhaps they are just trying to make a large profit from the house???
#43 Rob: I am also seeing rent with option to buy, now that is something I do not ever recall seeing in “prestigious” Bergen Co towns before before.
abamitphd: Here are numbers from Spreadsheet that JB posted earlier. Closing date, MLS# and Price
06/01/2007 2353613 $2,000,000
06/01/2007 2391292 $2,400,000
06/05/2007 2399704 $1,150,000
06/11/2007 2301093 $2,850,000
06/13/2007 2367931 $1,750,000
06/14/2007 2390186 $1,670,000
06/15/2007 2329648 $1,115,000
06/15/2007 2321079 $2,770,000
06/15/2007 2384232 $1,275,000
06/18/2007 2358331 $1,300,000
06/18/2007 2363115 $1,215,000
06/18/2007 2384742 $1,608,000
346 Duck We do not know definitively, but chances are, that is what they are trying to do. Especially if purchased in the last few years.
We may be cooties infested filthy renters, but we are not morons.
I saw two new construction homes with “Luxury Rental” signs on the lawn.
30% OFF the OLP prices.
2278330
Millburn Twp.
OLP: $3,195,000
LP: $2,540,000
SP: $2,215,000
Sold: 05/29/2007
Duck: With 20% your OLP, you will still be better off.
Maybe all of you cooty infested renters should rent this place:
http://njmls.com/cf/details.cfm?mls_number=2713791&id=999999
Thanks SG.
The Milburn market will still pretty hot in early June.
I was curious if things had cooled off.
If not, this Alt-A tightening should do the trick.
If you are willing to pay 8k a month on rent, you obviously don’t value the money you make.
Not to mention, the people who usually make big bucks are working long hours and away on business which means they are rarely home anyway.
Someone needs to tell this guy that he is in Fort Lee, not Alpine:
http://njmls.com/cf/details.cfm?mls_number=2730671&id=999999
even when these sellers offer a reasonable rental rate, they are less desireable because you know they are going to try to kick you out as soon as they find a buyer. If they really wanted to rent their places, they would actually have to discount their prices to account for this uncertainty, not charge a huge premium as most try to do.
#47 3b
‘I am also seeing rent with option to buy…’
I’ve seen a lot of that recently, in addition to rental postings that are trying a lot harder now -have ‘perks’ and lots of exclamation points included.
Something I hadn’t seen before either, since it was enough to list rent and size, and rentals would be snapped up.
Skep: Murdoch IS different. Several of his media properties are, in effect, loss-leaders; I suspect the WSJ will be another. He makes the big money from Fox Network, Sky and its related satellite/cable ventures. The NY Post, among other “tentpole” properties are promotional vehicles, brand enhancements.
Where Murdoch succeeds is in catering to an ideology, not an audience. By propping up Movement Conservatism in the US, for example, he has succeeded in winning political support for the repeal of Fairness Doctrine, and for the FCC and FTC to relax its strictures on media concentration in individual markets. Murdoch’s support of the GOP in his adoptive homeland (he became a citizen to sidestep rules governing media ownership by extranationals) has been very good for the bottom line. Much better, in fact, than merely “giving the people what they want.”
“If you are willing to pay 8k a month on rent, you obviously don’t value the money you make.”
Actually, most people who pay this much rent do not pay the rent… their employer does. A year or two ago, there was a baseball player renting a McMansion in town for $6,500 a month. He wasn’t paying that rent… And when I lived in Edgewater, there were tons of cars in the parking garage with diplomatic license plates. You think they were paying the rent?
wow. 6k a month for Fort Lee? You could buy it for less.
#60
If you look at all of the Fort Lee rental listings, you will see that there are some nice McMansions for $4,500 a month. Tell me why I should pay $6k for a POS rambler instead of $4,500 a month for a McMansion???
Fall Fall fall 2007
M-E-L-T-D-O-W-N
How do you know the owners are paying $4k a month? Perhaps they are just trying to make a large profit from the house???
They were trying to sell it for $500k.
Mortgage and taxes on a $500k home is about $4k.
The place is unoccupied (otherwise they wouldn’t be renting it out).
Pulling a listing and then renting is often an act of desperation. This place is probably either a flip or the owner bought a new home and is having trouble selling this one.
In either of these cases, they are probably shelling out about $4k per month until they sell this place.
Fort Lee is basically a traffic cluster—k
You couldn’t pay me to live there. In fact, I avoid going to doctors in that area because the stress of driving in Ft Lee outweighs any health benefits you could get from the Dr.
Actually, landlords try to make even more money than what the rent states. Many of them tell the tenant that they did damage to the property at the end of the lease and they keep your deposit, even if you did not do any damage. Basically, the deposit is rent for the 13th month on a 12 month lease.
#65: That is why it is a good idea to take tons of pictures when you move out and include them when you hand over the keys.
‘Consequences’ Ahead for the City
Market Plunge ‘Is Going To Hurt,’ Mayor Warns
http://www.nysun.com/article/59643?page_no=1
I heard the police do not even investigate when slumlords are murdered they are however a slightly higher priority that a dead crackhead but slightly less that a real estate broker. The Hindus believe you come back in the next life as something appropriate to how you lived this life. Be kind to pond scum, they are dead slumlords just trying to catch a break.
Notice how nobody even bothers mention the 30% – that’s 30 percent – off list price.
Remember earlier this year when folks were saying we MIGHT see 10% declines? hahahahahahaha
People like Bi and the Troll are so clueless. I love how they are acting like this is just a little blip and it will soon pass …
October will be a bad, bad month in the housing industry … i do think Dec/Jan will be time to be a buyer. Just my humble opinion, mostly based on this:
http://www.nytimes.com/2007/08/01/business/01leonhardt.html?_r=1&oref=slogin
#58
Jamey– that may be so, but it would all amount to nothing if his products didn’t attract eyeballs. No one is forcing anyone to watch Fox News or read any of his papers. There are plenty of other media options available.
By the way, I just heard about the Fairness Doctrine on NPR this morning and it sounds pretty frightening to me. I can’t understand how people who call themselves liberal would be for direct governmental meddling in the content of news.
Actually, I rented a furnished summer place that got broken into one week before the end of the year and the landlord claimed their was stolen furniture that equaled the cost of my deposit and took it. Next summer I happened to be in the cabin and guess what the same old furniture had reappeared, turned out that every summer the landlord did the same thing. A few years later to add insult to injury I found the real estate office that rented it to me actually owned it but you know I had to pay extra cause the “owner” listing it was “paying a fee”.
Actually, landlords try to make even more money than what the rent states. Many of them tell the tenant that they did damage to the property at the end of the lease and they keep your deposit, even if you did not do any damage. Basically, the deposit is rent for the 13th month on a 12 month lease.
I always take pictures as soon as I move in and send the landlord a certified letter documenting the condition of the apartment for “our mutual understanding”.
By the way, I have never had a problem with a landlord. I always pay my rent on time and always return the apartment in as good or better condition that I got it. I just let them know up front that they aren’t going to trump up a bunch of fake damage to keep my deposit.
On my current apartment, I also plan to use the security deposit for the last month’s rent. I am permitted to do this since I didn’t receive the required annual notice informing me how much interest my security deposit accrued.
Where is this Thursday open house?
“On my current apartment, I also plan to use the security deposit for the last month’s rent.”
I did that when I rented. The landlord hired a lawyer who threatened to sue me.
Question that probably can’t be answered, but i’ll pose it anyway:
anyone have thoughts on how H Clinton winning the Presidency next year will adjust the housing market/economy overall?
First off, she will win. Second, i would feel bad for her if she came into a situation where the war was grim (likely) and we’re in a recession (probable).
“Duck Says:
August 2nd, 2007 at 2:16 pm
“On my current apartment, I also plan to use the security deposit for the last month’s rent.”
I did that when I rented. The landlord hired a lawyer who threatened to sue me.”
Because most of us include that in our leases. I’ve never gone so far as to sue anyone for doing it, but that’s only because I haven’t had to recoup any excessive damages. Most of the tenants I’ve had have been pretty good about leaving the place as clean as they found it.
That being said, i’ve actually never had an issue with security deposits, and the examples that i’ve read here are terrible. I would never dream of screwing a tenant over like that.
As far as the claim that you are justified in using the last month’s rent if the landlord has not given you annual notice of the interest on the deposit: I don’t think that is true, at least not for owner-occupied units.
I did that when I rented. The landlord hired a lawyer who threatened to sue me.
Why? Did you legitimately owe money for damages? Otherwise, what is the point of suing?
Even if he sues, the burden of proof is on him to prove that he can rightfully claim your security deposit for damages. If he keeps it anyway (on made-up damages), now you have to sue the landlord and prove that he is in the wrong. You have the burden of proof.
I’d say let him sue. Worst case, you owe the rent and he keeps your deposit. It goes to landlord tenant count, so you don’t need a lawyer.
There is a provision in the law that says you are allowed to use the security deposit toward rent if the landlord doesn’t send you all of the required written notices. This includes an annual statement of interest with an option to either apply the interest toward rent or have it paid out to you. Since I never received this, I can legally apply my security deposit toward rent.
?
Just a reminder for those guys who keep saying housing will be as bad as the great depression.
Great Depression How Bad was it?
100,000 businesses failed. Stock values fell from $89 billion to $15 billion. From 381 to 41. $74 billion was lost. 25% unemployment rate [15 million](125 million in the U.S.) [Unemployment was 3% in 1929.] Unemployment stayed above 14.3% from 1931-1940. Average unemployment was 18% 10,797 banks failed out of over 25,000, taking the life savings of 9 million people.
GDP dropped from $104 billion in 1929 to $56 billion in 1933. One million lost their homes. Housing starts dropped 90%.
The Great Depression was so bad that when Bonnie and Clyde were shot, [Clyde’s body had 187 bullet holes and Bonnie’s body had 52 bullet holes] that morticians complained that they couldn’t hold embalming fluid.
Apple sellers could make $1.15 profit on 72 sold apples. Many factory wages went from .55 an hour to .05 an hour. Agriculture collapsed. Prices and wages dropped around 25%. Factory production dropped 50%. Auto production fell from 4.5 million cars in 1929 to 1.1 million in 1933. Those who checked into hotels were asked, “For sleeping or jumping”?
I don’t think that is true, at least not for owner-occupied units.
You are correct. Doesn’t apply to owner occupied.
By the way, my intention isn’t to screw the landlord. I just don’t want to get screwed.
In fact, I plan to leave the place in better condition than when I got it. I keep the place spotless. I make small repairs without bothering the landlord because it’s easier just to do it.
I will even offer to walk through the place with my landlord before I leave just so we are both on the same page.
i would feel bad for her if she came into a situation where the war was grim (likely) and we’re in a recession (probable).
Why feel bad? Presidents routinely take credit when the economy booms during their time in office, even when (as is usually the case), they had very little to nothing to do with it.
It’s only fair that it work the other way around as well.
John Says:
August 2nd, 2007 at 2:43 pm
Just a reminder for those guys who keep saying housing will be as bad as the great depression.
Just watched Cindarella Man last night. For a good idea of what it was like, watch that movie.
The housing slump: How deep is the pain?
A grim forecast has economists wondering how far the collapse will spread to the rest of the economy
http://money.cnn.com/2007/08/01/real_estate/subprime_fever_catching/index.htm?postversion=2007080212
“I will even offer to walk through the place with my landlord before I leave just so we are both on the same page.”
I thought this was standard procedure? I always do that with the tenant when they are about to leave, so that we can have a discussion about the condition. This also can give the tenant a chance if i feel they haven’t cleaned the stove enough, for example, rathern than simply deduct it from the sec deposit.
The only reason i don’t allow the use of the sec deposit as a last month’s rent is in the extreme chance that a tenant has caused > 0.5 month’s damage. Luckily that hasn’t happened, but it very well could have.
As far the interest on the sec deposit accounts: i don’t typically provide my tenats with quarterly or annual reports, although i do offer the information to them. If tenants really feel they want to see their $1.30 annual interest, i can easily give them a copy of the statement.
My current lease states that I may use my security deposit for rent if the landlord fails to notify me in writing within 60 days of signing as to the deposit location. This is the first time I have not been notified, and the first time I plan to use it as the last month’s rent. I have received full returns of my previous 2 deposits, but those mgmt companies notified me and sent letters about interset earned. (Which I never got because they were allowed to charge admin fees that basically equaled the interest)
Can’t imagine this turning into the Great Depression. Also … Cinderalla Man was a great movie.
# abamitphd Says:
August 2nd, 2007 at 1:39 pm
“Thanks SG.
The Milburn market will still pretty hot in early June.
I was curious if things had cooled off.
If not, this Alt-A tightening should do the trick.”
Why do you say that?
i would feel bad for her if she came into a situation where the war was grim (likely) and we’re in a recession (probable)
A grim war and recession will actually improve her chances of coming into office. To the extent conditions improve, she will be able to take credit (whether deserved or not).
I think we will see a protectionist/anti-free trade shift if she is elected. The economy was the big sleeper issue of the midterm elections (war was obviously no. 1). I think jobs moving to China is going to be a big issue this election.
Italics off
#21 John
Lots of insight as always in your posts, but if you haven’t seen significant firings in any of the mergers you’ve been involved in, I would say that is merely a large coincidence. One of the main driving factors behind most corporate mergers (as opposed to buyouts/PE deals) is “synergies” (my favorite euphemism for mass firings).
#83,
Did anyone get their security deposit back in college? I don’t know about you but ask any recent (or not so recent) college grad if they received their security deposit back. No one I know ever got it back (or maybe half at most). It is lots of extra income for those property companies. I remember getting charged $60 because the stove plates were stained. This was 13 years ago. Lots of rip-offs happen because college kids are transient and the parents do not inquire or fight. Can’t you sue them for outrageous deductions?
“Did anyone get their security deposit back in college? I don’t know about you but ask any recent (or not so recent) college grad if they received their security deposit back. No one I know ever got it back (or maybe half at most). It is lots of extra income for those property companies. I remember getting charged $60 because the stove plates were stained. This was 13 years ago. Lots of rip-offs happen because college kids are transient and the parents do not inquire or fight. Can’t you sue them for outrageous deductions?”
The last time I’ve been to a college off-campus residence (new brunswick), i’ve noticed that it was a dump. Not sure if this happened prior to occupancy or during.
It very well could be that the mgmt companies take advantage of the students, but i doubt students are that great about leaving a place spotless when they leave.
I always got my deposit back in full when i rented, although it wasn’t during college but post-graduation.
Skep (36)-
“The WSJ and Barrons will lend credibility to the Fox Business venture– which in my estimation can’t be any dumber than CNBC.”
What? Don’t you just love Joe Kernan’s jokes every morning? What about the Homer Simpson sound effects? Hilarious.
However, there’s no doubt Murdoch can out-dumb CNBC. As for me, I’m waiting for Page 6 girls in the WSJ.
#90 – depends on the landlord. most gave us our deposits back, some of them nickel and dimed us for some of our deposit (this was 10+ years ago though).
“anyone have thoughts on how H Clinton winning the Presidency next year will adjust the housing market/economy overall?”
Disclaimers apply.
Sell the dollar,stock market and buy currencies and gold.
#90,
The only time I had trouble getting back a security deposit (out of 4 or 5 that I’ve paid) was in college. I was paying my own way, had a negative net worth, and a few hundred $ meant a lot to me.
The landlord’s case was the floor was scratched. I demanded my $ back. He said no. So I produced copies of several outstanding violations that he failed to pay. I received the full security back a few days later.
If you are dealing with a small landlord, then intimidation tactics are effective and you shouldn’t be ashamed to deploy them.
#86.
I assume your question is about Alt-A.
The rating agencies changed their rating criteria this week for Alt-A, and now major Alt-A lenders are stepping back from the market. Same thing happened to sub-prime last month.
In the next month, mortgage financing will likely revert to 2001 technology. You will have to document income, and either need 20% down, or have 10% down and pay PMI.
#21, John
You’ve never worked in advertising, obviously, or publishing.
“You will have to document income, and either need 20% down, or have 10% down and pay PMI.”
How revolutionary. Some things old become new again. How about $100k down on a cape in NNJ or 50K plus PMI?
As Dandy Don would sing on MNF, “Good night, the party’s over”
“In the next month, mortgage financing will likely revert to 2001 technology. You will have to document income, and either need 20% down, or have 10% down and pay PMI.”
What happens to the folks looking to refinance their resetting ARM WMD’s?
#98
I didn’t think the market could implode on itself without employment faltering, but this will likely to do it. Home sales will get killed for the rest of the year.
#99
Foreclosure. Bankruptcy. And this could drag on for years. Just when you think we’re done with the hybrid ARM reset, you have the Option ARMs hitting their neg am triggers.
a worthwhile read
http://www.annaly.com/mikesocQ207.pdf
M-E-L-T-D-O-W-N FALL 2007
Hang in there. Young buyers with an attitude. You not required to pad the pockets of these grubbers. let’em work for it.
IT’S ALL ABOUT AFFORDABILTY AND LEVERAGE. BOTH ARE OFF THE CHARTS.
WE GOT A PROBLEM. IT IS BEING CORRECTED NOW.
BUYER POOL HAS JUST CRASHED.
HEAR THAT GRUBBING BUNCH.
Hey why don’t someone play nice and bail this person out from their home being foreclosed. (smile)
http://newjersey.craigslist.org/rfs/387177388.html
YOUNG BUYERS HAVE BEEN LIED TO, ABUSED AND STOMPED ON THE LAST SEVERAL YEARS
THIS IS PAYBACK TIME BABY.
MAKE’EM PAY.
IT IS A BUSINESS TRANSACTION. NOTHING MORE.
HEHEHEHHEHE
I follow a pretty popular NYC tenant site and it is basically agreed upon that you should use your security deposit as your last month’s rent. For the LL to sue you, it takes time and $$. As long as you didn’t do any damage to the apartment and have pictures to back it up then why not do it? There is only one downside in NYC (landlord is vindictive and takes you to court just to get you on the register and thus blacklisted in NYC). Otherwise it is just not worth the LLs time and $$ to sue you in court for something he already has in his possession. I always have done this and it has always worked like a charm. Landlords hate it because then they have to track you down to get payment for damages that the SD would have covered but I that is their problem, not yours. It is a dog-eat-dog world out there my friends.
so far a car, next a bike then more toys……..lots of lets make a deals out there.
Bleed’em dry….do not leave anything on the table.
hehehehehhehehehe
“I follow a pretty popular NYC tenant site and it is basically agreed upon that you should use your security deposit as your last month’s rent. For the LL to sue you, it takes time and $$. As long as you didn’t do any damage to the apartment and have pictures to back it up then why not do it? There is only one downside in NYC (landlord is vindictive and takes you to court just to get you on the register and thus blacklisted in NYC). Otherwise it is just not worth the LLs time and $$ to sue you in court for something he already has in his possession. I always have done this and it has always worked like a charm. Landlords hate it because then they have to track you down to get payment for damages that the SD would have covered but I that is their problem, not yours. It is a dog-eat-dog world out there my friends.”
I don’t really see the point in it. Won’t you need that sec dep for the next place anyway? So it’s either 6 or 0.5 dozen? If i wanted to be an *sshole, i would be more likely to look a lot more closely to find damage in a tenant’s apt if they violated lease terms, and good luck getting all of the remaining 1/2 month balance back. This is assuming the landlord collected 1.5 month up front.
“Landlords hate it because then they have to track you down to get payment for damages that the SD would have covered but I that is their problem, not yours. It is a dog-eat-dog world out there my friends.”
That’s is not how to do business. if you damage property you should pay.
It’s one thing Bleeding dry sellers of items, but one must take responsiblity for one’s actions such as damage or anything else.
#101, nice link. Booyaa (three-quarter sick yell)
#103
I emailed the guy to see what the rent roll and taxes are. I want to see how far under water he is.
Why would someone not just buy the place at the foreclosure sale from the bank directly? He is probably trying to salvage what little (if any) equity he has left. No need to pay him this when the bank will sell it to you for the Mtg (or less) on the courthouse steps.
“What happens to the folks looking to refinance their resetting ARM WMD’s?”
dream,
They’ll be looking for a long time.
Here’s one more reason why it pays for NYC landlords to get along with their tenants and not dick them around: Landlord sued me for the last month’s rent (I told them to keep the deposit and interest accrued in escrow from same). They also filed to have me evicted (I declined to sign a lease extension; was expecting to close on purchase of my present home, but wanted to hedge my bet, knowing that at least three months could pass before HPD could initiate eviction process).
Landlord was a dick in so many ways that it boggles the mind, not least of which, she was representing the apartment as non- rent regulated, when it was. Then she fired the super, but, because the super also had a lease on the apartment, she had no place to house a replacement super, and thus, just didn’t bother to hire someone to maintain the building.
Ennyhow: Day the movers were taking my stuff to NJ, I was in housing court with landlord’s lawyer. Landlord’s husband was a reasonably well-connected former AAG for NY State; they turned over the duties to a young associate at landlord’s husband’s law firm. He was a 20-something $400/hr patent attorney with terrible courtroom demeanor AND a horrible perspiration problem. It was late August during the hot summer of ’98.
$400/hr lawyer an I approach the judge in housing court (which was, at the time, astonishingly pro-tenant). I filed papers and represented myself. $400/hr was dressed in a light-colored suit that showed pit-stains in the late-summer heat, expensive-looking cap-toe oxfords, and a verging-on-tacky white- and yellow-gold Rolex. I took care to dress like a humble schmuck–inexpensive white oxford button-down, simple silk rep tie, khakis, Weejun loafers, Swatch watch.
We both explained our situations. The judge, peevishly said to $400/hr, “The tenant is vacating the apartment; you have his deposit plus interest. What more can you possibly want from this court? I’ll give you a week to settle things between you, but I fail to see what your client, the landlord, could hope to get from this bench that they don’t have already.” Lawyer muttered something about deceit. Judge told him to shut it. Faced! “Pwned.” I thanked the judge and walked out. Ahhh, good times.
“”Read My Lips: Price are going down down down Says:
August 2nd, 2007 at 4:06 pm
“Landlords hate it because then they have to track you down to get payment for damages that the SD would have covered but I that is their problem, not yours. It is a dog-eat-dog world out there my friends.”
That’s is not how to do business. if you damage property you should pay.
It’s one thing Bleeding dry sellers of items, but one must take responsiblity for one’s actions such as damage or anything else.””
I’m glad I’m not the only one who sees it this way. If the damage is substantial, it really would not be difficult to get a judgement rendered against the tenant. Remember that we have your SSN…
Despite the market, builders are still building. I was walking by a construction site in town where there are 2 McMansions being built. I asked one of the sub-contractors why the builder is still building in this market. His answer to me: “Because he is an A-hole”
I totally buy this story. So many junior associates at big firms who are asked to do pro bono work for non-paying clients in areas of law they’re unfamiliar with do not learn the relevant law as well as they should, including available remedies, and then get their asses handed to them in court. I’ve heard stories about big firm associates getting yelled at for showing up to court unprepared.
“I’m glad I’m not the only one who sees it this way. If the damage is substantial, it really would not be difficult to get a judgement rendered against the tenant. Remember that we have your SSN…”
And even if you do not get a dime from the offending renter, just to be nasty, you can ruin their credit to prevent them from buying a house when the market improves.
“Duck Says:
August 2nd, 2007 at 4:20 pm
And even if you do not get a dime from the offending renter, just to be nasty, you can ruin their credit to prevent them from buying a house when the market improves.”
That’s exactly my point. I say it’s better to just be as fair as possible. I don’t believe in karma per se, but i do think that sooner or later people who pull shady business practices pay for it.
#114
As I said, if you have no damage and can prove it with pictures then why should you or the LL worry? If there is damage then I obviously mean one should pay it. You owe what you owe and that is good business, I do agree. However, there are many, many unscrupulous LLs out there that make many a buck off their tenant’s SD. I moved out of my apartment last October when I purchased a place in NJ. I used the SD as my last month’s rent and all the LL did is send me a $30 bill in the mail to replace the top lock on my apartment. I should have removed this before I left and actually thought the charge was very reasonable. I paid the bill the day I got the letter. Bad people will do bad things and good people will be good people. Why put yourself in a position for a possible bad LL to get the upper hand? It is dumb given the circumstances. If the LL sends me a bill for damage I have done then an honest person verifies the charge and pays it. If a LL send me a bogus bill for bogus things then why should they hold my SD hostage and make ME sue them for it? No way my friend, logic dictates that the right way to go every time is to use the SD as last month’s payment.
Duck: You gonna wreck the credit rating of the individuals who damaged your brain?
American Home Mortage closing tomorrow
http://www.newsday.com/business/ny-bzahm0802-story,0,140291.story?coll=ny-leadhealthnews-headlines
>>
In memory of those who bought AHM on the ‘dip’.
Some poster guy, #112
As someone who spent many years counseling law-abiding tenants who needed housing court for things like heat, or running water, I want to thank you for being the real dick in your smug little story. Not only does it sound like you held over beyond the expiration of your lease, but then you decided to unilaterally change the terms of the contract you’d signed. What a prince. It’s people like you who give tenants a bad name.
“Mike NJ Says:
August 2nd, 2007 at 4:24 pm
#114
As I said, if you have no damage and can prove it with pictures then why should you or the LL worry?”
I don’t know about other people’s contracts or situations, but i put it in my lease that last month’s rent should not come out of the sec dep.
When that happens, it’s technically a breach of contract. However, as i said before, i have never taken legal action as it has not been warranted, and in most cases won’t be.
If you plan on doing that, you should simply ask the LL up front while reviewing and signing the lease.
Hey renters,
summer is almost over! Better go out and buy those electric space heaters since we all know that the furnace in your building is going to “break down” on the first cold day this winter!
“That’s exactly my point. I say it’s better to just be as fair as possible. I don’t believe in karma per se, but i do think that sooner or later people who pull shady business practices pay for it.”
Shady practices?
This type of shenanigans have been going on for several years with realtors, appraisors, mtg brokers, builders and the ilk.
I want these unethical MFers to suffer.
Wiseup young buyers. Do Not listen to these leeches.
babababababa
Duck Says:
August 2nd, 2007 at 4:35 pm
Your depseration is showing. The dopey public now knows real estate is toast. Oh well.
Plus dopes can’t get a loan anymore.
HEAR that POP!
#120 hahahahaha
I love it. I hated those scumbag exec’s in that company. They were late with everythin and took a long time to close.
Bye Bye…..
By the way most people working in this firm where overextended on their lifestyle.
There will be a lot of fire sale typr auctions in LI.
“Hey renters,
summer is almost over! Better go out and buy those electric space heaters since we all know that the furnace in your building is going to “break down” on the first cold day this winter!”
I never had an issue like that as a renter. Duck, are you ready for those energy prices this winter?
“summer is almost over!”,
Something that existing sellers just don’t want to hear.
#123, Quack..let the landlords spend the dough to fix the furnace.
The lunatic is in your head….
PeaceNow: If the landlord had provided for safe and well-maintained premises, instead of reneging on the parts of the tenant agreements that guaranteed same because of some asanine grudge she held against an employee. And if the landlord hadn’t been so greedy as to charge rent from her super under the terms of an existing lease, thus making the super’s tenancy NOT a condition of employment, then you might have cause for your pea-headed indignation. But probably not, because you come across in print like Margaret Dumont’s character in a Marx Bros. film.
I’m not the kind of person who goes around looking to piss in strangers’ Corn Flakes, but screw with me and prepare to get screwed back–especially when you have MY money (in the form of a security deposit). Best advice I can offer someone in that position (other than don’t dick around your tenants) is to be sure you’re considerably smarter than the tenant you choose to dick around. The landlord misrepresented herself and violated terms of our contract. Did you not pick up that part of my posting? I acted in my own self-interest. The courts supported me. So cry me a f**ing river, you silly concern troll. I’m just glad I knew how to read the DPS/DHCR web archives, so I didn’t have to turn to a nimrod like you.
Did anyone get their security deposit back in college?
Nope. I got screwed in college. I got charged exorbitant fees for a bunch of preexisting problems. We went back and forth with letters. I considered going to court, but ultimately it was just my word against his. Besides, I was just starting a new job.
The city (New Brunswick) building inspector had documented these preexisting conditions, but magically lost the report due to a flood in his office when I needed it to establish a case for court.
I learned my lesson. Now I document everything with pictures and certified letters when I first move in. When I rented a shore house in Belmar, we were the only ones on our block (with a landlord who owns several houses and has a reputation for keeping deposits) to get our full deposit back.
Isn’t renting grand?
“I’ve heard stories about big firm associates getting yelled at for showing up to court unprepared.”
Big firm associates go to court?:) Do they even know the way?
I have never seen someone get so worked up and excited as a big firm associate over a simple preliminary conference order or other similar mundane courthouse sh-t. They think night court in the basement of the Bronx courthouse is their shining moment they are so sheltered from actual court experience.
Ps – speaking of security deposit, we were able to negotiate a full return of ours, no inspection of the apartment, b/c they are converting to condo. And despite our lease, we do not have to pay the full month rent for August – only 1/3, for the time we used the apartment. Not all landlords are awful, especially when they desperately want you out:)
I’ve had problems with AC units, but never with heating.
Would rather struggle for a day or two with the heat (uh, put some clothes on) than be a BAGHOLDER.
NBC News, when it does an expose on how real estate is hurting and about to get much worse should have the chorus from ‘IT’S GETTIN UGLY’ by Bubba Sparxx as the lead in.
Duck, are you ready for those energy prices this winter?
Wow. That’s right. I totally forgot about heating costs because heat and hot water are included in my rent.
Renting is grand if you take the time to find a landlord who’s not a slumlord. Not saying it’s easy. The guy I rent from now is really too nice to be a landlord. I say this because my father is the same way and has had tenants screw him over in the past. I’m not looking to take advantage though. I’m a dream tenant. I take care of the house out of habit because I’ve been a homeowner in the past. Renting has been a nice break for me. It’s going to be tough to go back to being the guy on the hook for repairs and maintenance.
Renting is great. Landlords are stupid and mean cause they keep th esecurity deposits.
I always keep mine. There’s only one reason why I keep it.
I CAN!!!!!!!!!!
““What happens to the folks looking to refinance their resetting ARM WMD’s?”
dream,
They’ll be looking for a long time.”
Not true, You would be surpised to see how easy it is to reset loans. There are many places that will throw money at homeowners, even today!
All right everyone. It is obvivous that many of you are posting under multiple names. Come on, you know who you are!
Duck Says:
August 1st, 2007 at 8:48 pm
Rich,
I just raised my asking price by $30,000. Does this mean that you will be moving to North Carolina?
No.
It means you’ll definitely be staying in Cliffside Park.
48 price changes yesterday for SFH in Bergen County and your the only one who raised their price. Sounds like you have a winning plan there Donald.
Rich
“Isn’t renting grand?”
Clot,
Actually 2 grand. That’s what I’m saving each month. On top of that, my landlord is cleaning the pool while I type this nonsense.
Grand? Did somebody say Tim Donaghy?
US Mortgage Rate Edge Down Slightly
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.68 percent. That was down slightly from 6.69 percent last week and was the lowest since early July, when rates stood at 6.63 percent.
After a five-year boom, the housing market fell into a slump last year. Sales turned weak as did home prices. The slump is expected to drag on probably through the rest of this year.
Worries about the sour housing market along with fears that problems with higher-risk subprime mortgages will spread, caused stocks to crater last week. The carnage left the Dow Jones industrials down more than 585 points, its worst week in five years. Stocks have gyrated since then, reflecting lingering anxiety among investors.
0.01% rate drop will definitely be a big help.
“Not true, You would be surpised to see how easy it is to reset loans. There are many places that will throw money at homeowners, even today!”
I bet it is. Your rate has been adjusted 4,5,6 points higher. Oh, by the way, your house appraises for 10-15% lower than your current mortgage. You are under water. You will be required to bring 75K to closing.
Rob [137],
Ditto.
From today’s NJMLS “Hotsheet”:
Cliffside Park
SLD EDGEWATER RD $610,000 9/20/2005
SLD EDGEWATER RD $529,000 8/2/2007
Closter
SLD HOMANS AVE $1,500,000 3/22/2006
SLD HOMANS AVE $1,535,000 8/1/2007 (2.3% / not even in line with inflation let alone commision and closing costs)
Old Tappan
ACT ORANGEBURGH RD $659,000 8/18/2006
SLD ORANGEBURGH RD $545,000 8/2/2007
Ridgewood
SLD S PLEASANT AVE $425,000 8/15/2002
SLD S PLEASANT AVE $495,000 8/1/2007 (3.1%/year)
ACT WALL ST $639,000 3/13/2007
SLD WALL ST $591,000 8/2/2007
ACT LOTTE RD $1,795,000 2/23/2007
SLD LOTTE RD $1,550,000 8/1/2007
American Home Motgage Closes Friday
http://www.newsday.com/business/ny-bzahm0802-story,0,140291.story
#130, Some Poster Guy
So…your landlord didn’t provide you with safe and well-maintained premises AND you feel you were overcharged. There are housing court proceedings for that, but it’s always so much easier to just do what you want, isn’t it?
Glad you read those DPS archives, whatever they were. Last I heard, it was called HPD. But, of course, you’re soooo much smarter than I am.
Not true, You would be surpised to see how easy it is to reset loans. There are many places that will throw money at homeowners, even today!
No doubt it’s still easy to get a loan. But as you yourself siad the other day, the rates ain’t what they used to be.
Countrywide would be glad to extend you a 3/27 @ 12% interest
PORT ST. LUCIE, Fla.
[edit]
Martinez showed up at Tradition Field believing he would throw about 45 pitches in a simulated game. He ended up throwing 67 and later declared that he has more knowledge now that all the work he’s done in overcoming rotator cuff surgery has been worth it.
[edit]
After a pause, he said with some force, “I feel better about stepping on the mound anywhere — because I wasn’t sure what to expect, what my response was going to be after I pitched a little bit. But now I know. It’s just a matter of time.”
Just a matter of time, he was saying, before he would be pitching for the Mets again. Assuming he has no problem from Thursday’s effort, Martinez is expected to pitch again either next Tuesday or Wednesday for the Mets’ Port St. Lucie Class A team.
[edit]
fastball clocked at 86-88 mph
I wonder what the most expesnisve rental in NJ is. For sale, it would be the Frick estate in Alpine ($49 million). For rentals, I would put this place at the top of my list:
http://njmls.com/cf/details.cfm?mls_number=2726335&id=999999
#142
Even with the lower rates this week, rates are still much higher than they were in 2004. Before I bought my house, I actually saw some lenders offering fixed rate mortgagaes with rates below 5%.
“I feel better about stepping on the mound anywhere”
No s*it. Sure beats sitting underneath the mango tree.
“Shady practices?
This type of shenanigans have been going on for several years with realtors, appraisors, mtg brokers, builders and the ilk.
I want these unethical MFers to suffer.
Wiseup young buyers. Do Not listen to these leeches.
babababababa”
Huh? Once again, we have absolutely no idea what you are saying. Thanks for wasting the bandwith. You can call what I say stupid all you want, but at least people understand what I am saying.
BC Bob, Read My Lips, and Bloodbath:
Watch your IQ levels collapse:
http://video.aol.com/video/news-video-captures-bridge-collapse/1951579
weeeee!
>>I did that when I rented. The landlord hired a lawyer who threatened to sue me.
that’s right. the security deposit is not meant to be used as the last month’s rent. i had two prior tenants ask me to use the deposit in such a fashion and i explained what it’s for. they understood and no problems ensued.
#39 (Milburn)
Try this link:
http://tax1.co.monmouth.nj.us/cgi-bin/prc6.cgi?&ms_user=monm&passwd=data&srch_type=0&adv=0&out_type=0&district=0712
>>I never had an issue like that as a renter. Duck, are you ready for those energy prices this winter?
i’m actually ready for another energy tax credit and the state property tax relief on multiple properties. sucks making money.
i can’t believe the clown and i both like the same baseball team. scotty beam me up.
“state property tax relief”
[156],
Send in the clowns.
“Collecting more taxes than is absolutely necessary is legalized robbery.” [Calvin Coolidge]
What’s the chance Countrywide will close down soon? They’re taking massive losses and can’t sell any of their mortgages.
Humm, lil’ kim’s neighborhood. Might be her house.
“Humm, lil’ kim’s neighborhood. Might be her house.”
She lives in Alpine. The rental is in Cresskill.
OK – not as good as Pedro, but close…
http://www.youtube.com/watch?v=9y7NjdIQ-Vg
Frank Says:
August 2nd, 2007 at 8:12 pm
What’s the chance Countrywide will close down soon? They’re taking massive losses and can’t sell any of their mortgages.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYsV3h8yS9pQ&refer=home
F: it means that they were prepared for this contingency and damn well knew it was coming. This evidence along with insider sales is the smoking gun.
friend just sent me this.
>>What housing slump? Sales of existing single-family homes in New York state in June showed an increase of more than 17 percent compared to May 2007, and the statewide median sales price increased by nearly 9 percent compared to the previous month, according to preliminary single-family sales data accumulated by the New York State Association of REALTORS
How can that little mess, insignificant, in the corner cause so much havoc? Just a hiccup, don’t be concerned.
“Railroads, chemical producers and insurance companies are blaming the worst U.S. housing slump in 16 years for their earnings woes.”
“The worst is yet to come for retailers, said Mark Kiesel, executive vice president and money manager at Newport Beach, California-based Pacific Investment Management Co., where he oversees $80 billion of corporate bonds. In the past year, consumers have taken about $400 billion less equity out of their homes than in the previous year, he said.”
“Because the house is no longer an ATM machine, the profits of these companies are going to be affected,” Kiesel said.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aBs95yG0JmB8&refer=home
richard,
Did your friends send you yoy #’s?
“The June 2007 total represents a 14.7-percent decrease compared to the June 2006 sales total of 10,996.”
“The June 2007 median represents a 3.5-percent decrease compared to the June 2006 statewide median price of $259,000.”
http://www.nysar.com/consumers/newsitem.asp?newsitem=357
You’re touting a 14.7 % yoy decrease, along with a 3.5% median price decrease? The bulls are really reaching for straws? Possibly something else also.
Sellers are not getting desperate. They are not panicing! Sellers are happy. Richard Kurtz is HAPPY! All sellers are HAPPY!
http://graphics8.nytimes.com/images/2007/07/20/realestate/650-frick-02.jpg
Are you happy?
“What housing slump?”
LMAO.
#163,
New Century issued the same statement last year around the same time. We know what happened to them.
$1.99 [168],
This one is not too happy, a ton of others similar to this.
$619000 2 BED 2 BATH UNIT AT EXCLUSIVE BULLS FERRY. PRICE RECENTLY REDUCED!!!!
——————————————————————————–
http://newjersey.craigslist.org/rfs/385950259.html
#171
HEY! That is the Gold Coast! Prices are not supposed to be reduced there. They are probabaly desperate because they can’t compete with Henley on the Hudson, which is down the road from them.
In this article from last February, it states that prices start at $600,000:
http://www.northjersey.com/page.php?qstr=eXJpcnk3ZjczN2Y3dnFlZUVFeXk3NzAmZmdiZWw3Zjd2cWVlRUV5eTcwNjUwMTUmeXJpcnk3ZjcxN2Y3dnFlZUVFeXkx
However, their website states that prices start at $900,000!! Looks like they were selling so good they just raised the price by $300,000!
oh, and a professional football player bought 3 townhouses at Henley for $3 million each (In the article, it says that prices only go up to $2 million). He wanted to buy 6 townhouses, but the developer only let him buy 3.
“oh, and a professional football player bought 3 townhouses at Henley for $3 million each”
Michael Vick?
https://community.hsus.org/campaign/US_2007_dogfighting_nfl2?qp_source=gaba66&gclid=CL-svZ6d2I0CFSgQFQodiXWqmA
“Members Equity Bank Ltd. became the first Australian lender to scrap a planned sale of home loan- backed bonds as the U.S. subprime mortgage rout spreads across credit markets.”
“The A$500 million ($429 million) sale was pulled after the Melbourne-based lender failed to find enough buyers, it said in an e-mailed statement today”
http://www.bloomberg.com/apps/news?pid=20601087&sid=aA8tYXLfoqng&refer=home
My tax bill came in today. I live in P-way. My taxes have gone up 11%!!!
what a goldilock day! dow up another 100 pts. bond up 4/32. homebuilder index up 2.8%. i guess somebody here got to wait longer
176#, p-way sucks. sell sell sell and move to NC
bi 178 LOL, nice parts of NC have taxes increasing just as fast. Only way to escape this is if I move to the boonies in NC. Who wants to live in Franklinton anyway?
179#, i heard p-way schools got better. maybe big portion of the increase go to the school backet
L’il Kim’s house (the one being built) is in Saddle River. (it’s a monstrosity that looms right behind another house.
She might live in Alpine but her “castle” — complete with turrets — is in Saddle River.
sl
180 bi,
Some of the P-way elem schools are quite good. The HS still has serious disciplinary problems.
Move along. Nothing to see here….
WSJ
Tightening Standards Could Worsen Slump
In the Housing Market
By JAMES R. HAGERTY and RUTH SIMON
August 3, 2007
Jittery home-mortgage lenders are cutting off credit or raising interest rates for a growing portion of Americans, extending well beyond the market for subprime loans for people with the weakest credit records.
This worsening credit crunch threatens to put further pressure on the housing market, where prices are flat to declining in much of the country.
Lenders are tightening standards and “raising rates like crazy,” said Melissa Cohn, chief executive of Manhattan Mortgage, a New York mortgage broker. She said Wells Fargo & Co. is charging 8% for a prime jumbo 30-year fixed-rate loan that carried a 6 7/8% rate late last week. (Jumbo loans are those too large to be sold to government-sponsored mortgage investors Fannie Mae and Freddie Mac.) A Wells spokesman said rates are lower on loans made directly by the bank than on those through brokers.
The market for mortgage-backed securities is “very panicked,” Michael Perry, chief executive of IndyMac Bancorp Inc., another big lender, said in a message on the lender’s Web site yesterday.
Seeking to soothe the market, Countrywide Financial Corp., the nation’s largest home lender, said it had plenty of funds available to weather the industry’s troubles.
The fright among investors is forcing lenders to go back to more-conservative practices that were the norm before the housing boom of the first half of this decade. Many now are focusing on loans to borrowers who are willing to document their income, can make a down payment of at least 5% and have a history of paying bills on time.
Industry executives have said subprime lending is likely to shrink by more than 50% this year, and now much of the Alt-A market is vanishing too.
This credit squeeze “will further crimp the effective demand for housing, and will make the late summer home-sales season even worse than the dismal spring season,” said Thomas Lawler, a housing economist in Vienna, Va.
[edit]
Move along. Nothing to see here….
WSJ
Credit Chill Freezes Leveraged Deals
By VICTORIA HOWLEY, KATE HAYWOOD and MARIETTA CAUCHI
August 3, 2007
LONDON — The big chill gripping global credit markets has caused 46 leveraged financing deals around the world to be pulled since June 22, representing more than $60 billion in funding that companies had planned for mergers and acquisitions.
The number of deals pulled last year: zero.
[edit]
#179
Not an accurate statement at all.
It is true the outlying counties of charlotte have had decent size tax increases lately, & will probably increase at a good clip in the foreseeable future, however if you put it in perspective what you get down here vs the POS you get in NJ, there’s no comparison.
Home Seller 185,
I wasn’t comparing actual dollar values – I was comparing rates of increase. Even when comparing rates of increase, the comparison is exaggerated. Nice burbs of Charlotte or Raleigh don’t see the YoY 10% increases we do here. Some places in NJ see well over 10%.
Sync
I can’t dispute that. I felt that pain up until April of this year….
From Bloomberg
Schiff of Euro Pacific Capital Calls U.S. Economy a `Mess’
video:
http://www.bloomberg.com/avp/avp.asxx?clip=mms://media2.bloomberg.com/cache/vJck9ysOID2E.asf
come on folks, truth is that in luxuruy towns like saddle river/upper saddl river, spec home prices have not come down to realistic levels at all. $800k lots + $800k structures are still ask at $2.8m, what gives?
these should be trading at $1.6/1.9m in a distressed market, until I see that I am not a believer in the collapse in the market……
OK Kids I’m off to Tampa.
I’ll miss the nuttiness around here.
OK – slackerman takes a vacation, so we have to step up
U.S. Housing Is Among `Biggest Bubbles,’ Rogers Says
http://www.bloomberg.com/apps/news?pid=20601103&sid=a2Rnaf9tZJbA&refer=us
Long Island based American Home Mortgage to lay off thousands
http://www.marketwatch.com/news/story/american-home-mortgage-lay-off/story.aspx?guid=%7B4296631D%2DF768%2D4699%2D95D3%2D71A904976E21%7D
OT:
Yankees …..the beginning of the end………
couldn’t have happened to a nicer guy
http://www.nypost.com/seven/08032007/news/regionalnews/tragic_madness_of_king_george_regionalnews_dan_mangan.htm
U.K. Subprime Loans Push Home Repossessions to Eight-Year High
http://www.bloomberg.com/apps/news?pid=20601087&sid=aDvjGDo1rzMU&refer=home
The U.K.’s Financial Services Authority said July 4 that U.K. lenders are providing mortgages to customers who don’t need them and may not be able to afford them, practices that may lead to “serious wider consequences.” All the subprime-loan providers failed to apply responsible standards, it said.
The overall repossession figures compare with a peak of 39,000 in the early 1990s, when the economy was in recession.
chi [192],
I heard fronm a very reliable source that George didn’t know who Reggie was, last years old timers. It’s obvious he is failing. How else can anyone explain Joe still giving the ball to Farnsworth?
Chi,
One other thought. How about Mark Cuban buying the team, in the near future?
According to NJMLS data, since 7/01/2007:
727 homes have sold in Bergen County
408 homes have been withdrawn in Bergen County
4,183 homes are currently active in Bergen County
Yes, 727 homes have sold since July 07 which indicates homes are still selling, but look at the amount of active inventory.
That, my friends, is a good reason why there will be a price correction..a correction which is much needed.
In my situation, it was better to buy when I did for a number of reasons. This correction is going to take years to play out, not months. I couldn’t wait that long.
“What housing slump?”
Richard [165],
Did your friends send you this one? Market conditions resulting in no realistic alternative? 7,000 jobs, puff. Of more importance, the 10th largest lender focusing on Alt-A and the prime market. Subprime, Alt A? Just different cars in the same highway wreck.
From 191,
“Unfortunately, the market conditions in both the secondary mortgage market as well as the national real estate market have deteriorated to the point that we have no realistic alternative.”
Houses will sell if they are priced right. If most houses in your neighborhood are asking $540,000, I would list your house for $430,000. Most likely it will sell.
Buyers looking in a specific town will most likely jump at the chance to buy for less. It may even spark a bidding war…
tbw,
If I remember correctly you bought at approx 20% comps across the street? Kudos to you.
That’s 20% off
BC Bob: Yes, I did…which is why we jumped to buy the house. A much smaller house down the street (a real POS) is listed for $420,000. I don’t think there are many lookers. There is another house on my block that just came on the market, a small cape listed at $379,000. The seller bought in 2003 for $299,000 and didn’t put any work into it.
that is almost 20% appreciation
tbw,
I would have done the same. Good for you.
Amazing, how the herd thinks that we are living in 2005. I wonder how many don’t even have a clue that they will be getting a rate adjustment this fall/winter. The leaves won’t be the only thing falling this autumn.
BC (195)-
Cuban has submitted an offer for the Cubs.
Clot,
I neeed a break. I did not know that.
From post I saw today on thehousingbubbleblog.com
Analysts. Highly paid cheerleaders who figure out ways to make stocks appear cheap
Bad news. Events that cause the Federal Reserve to cut interest rates so that share prices go up
Bears. Sad, lonely people who don’t appreciate why equity prices invariably move higher
Brokers. Specially-trained relationship managers who convert mere mortals into super-bulls
Bulls. Well-bred equity investors
Bond market. The place where stock market bears are sent out to pasture for their wayward views
Cash. Realized gains that equity investors spend on fancy vacations and assorted luxury items
Dividends. A positive influence on stock prices
Economy. An irrelevant side show to what happens in the equity market
Fear. An emotion that bulls experience when they are not 100% invested
Federal Reserve Board. A group of public officials who do their best to ensure that bulls are happy
Fundamentals. Anything that can help explain why stock prices rally
Greed. The only emotion that matters when it comes to playing the stock market
Hedge funds. Aggressive investors who use lots of leverage to ensure that stock prices eventually go up
Interest rates. A factor that occasionally serves as an explanation for why stocks rally
Leverage. The fail-safe strategy of using borrowed money to boost returns as share prices rise
Losses. The net result of selling short and listening to bond traders
Mutual funds. Investment vehicles that enable bulls to remain fully invested in the equity market at all times
Short-sellers. Dour individuals who scramble to cover bad bets as stock prices rally
Strategists. Highly paid cheerleaders who figure out ways to make stocks appear cheap
Wall Street. The place where bulls congregate and fawn over one another
Has this been posted yet?
From the WSJ, 8/3:
The Debt-Ometers
How to Read the Subprime and Other Consumer-Loan Dials
By SUDEEP REDDY and CONOR DOUGHERTY
August 3, 2007; Page C1
The downturn of the subprime-mortgage market is drawing attention to sometimes-overlooked gauges on the economy’s dashboard: those that track consumers falling behind on loan payments.
The rise in delinquencies — generally defined as loans 30 days or more past due — so far appears mostly in mortgages granted to subprime, or less-creditworthy, borrowers.
But economic forecasters, investors and the Federal Reserve are watching closely to see whether delinquencies are spreading.
“If you see sharp deterioration in bank card or credit-card delinquency rates, it suggests that consumers are beginning to buckle under the pressure of high energy prices and weakening housing markets,” says Ryan Sweet, an economist at Moody’s Economy.com. That would cast a shadow over the economy, given the import of consumer spending.
Here’s some of what delinquency measures compiled by the Federal Reserve Board, the Mortgage Bankers Association and American Bankers Association trade groups and by private number-crunchers show today:
Widely publicized delinquencies in subprime mortgages are concentrated in variable-rate mortgages, which account for about two-thirds of the subprime mortgages outstanding. Delinquencies on fixed-rate, subprime loans are relatively stable. But, delinquency rates on prime, variable-rate mortgages also are inching up, a particular worry as rates on cheap adjustable-rate mortgages climb.
In a switch from past behavior, some consumers are falling behind on mortgages while staying current on credit-card payments. It used to be the opposite.
The number of credit-card loans in delinquency has been running at about 4% of the total for the past six years; levels of 3% were common in the 1990s, according to the American Bankers Association. But the percentage has been moving lower recently.
http://online.wsj.com/article_print/SB118610452499486916.html
AHM told all 1300 LI workers last night that today is their last day, they are throwing out all 1,300 employees with one day notice and no severance.
Also from the WSJ today:
CDO Managers Feel
Pain of Subprime Slide
Losses of $50 Billion
May Hit Companies;
A Margin-Call Squeeze
By GREGORY ZUCKERMAN
August 3, 2007; Page C2
The fallout from the subprime slide continues to spread.
Caught up in the widening problems now are a group of little-known firms that managed exotic bundles of debt that were used to finance a rash of high-profile corporate buyouts as well as home mortgages extended to borrowers with shaky credit histories.
Managers of these collateralized debt obligations, as these bundles are called, are feeling intense pressure, as CDO losses could top an estimated $50 billion and new sales vanish. One of the largest such managers, Credit-Based Asset Servicing & Securitization LLC, known as C-BASS, this week warned it was being squeezed by “unprecedented” margin calls from its lenders.
http://online.wsj.com/article/SB118610257427186861.html?mod=hps_us_whats_news
U.S. July nonfarm payrolls up 92,000, weakest since Feb.
By Greg Robb
Last Update: 8:30 AM ET Aug 3, 2007
WASHINGTON (MarketWatch) – Job growth decelerated in July, the Labor Department said Friday. Nonfarm payrolls expanded by 92,000 in July, lower than the 133,000 expected by economists surveyed by MarketWatch. The unemployment rate ticked higher to 4.6% in July from 4.5% in the previous month. This is the highest unemployment rate since January. Economists forecast the unemployment rate to remain steady at 4.5%. Average hourly earnings increased 6 cents, or 0.3% to $17.45. The increase was in line with expectations. Earnings are up 3.9% in the past year. The average workweek slipped 6 minutes to 33.8 hours. Economists were expecting the workweek to remain steady at 33.9 hours in July.
From MarketWatch:
U.S. payrolls rise lower-than-expected 92,000 in JulyLowest payroll gain since Feb., unemployment rate up to 4.6%
The U.S. labor market softened slightly in July, according to the latest government statistics released Friday.
Nonfarm payrolls grew by a lower-than-expected 92,000 in July. This is the lowest amount of payroll jobs since February. The unemployment rate rose to 4.6%, the highest since January, the Labor Department reported Friday.
Economists were expecting payroll growth of about 133,000, according to a survey conducted by MarketWatch. The jobless rate was expected to remain at 4.5%.
From Reuters: American Home Mortgage to close Friday
“NEW YORK (Reuters) – American Home Mortgage Investment Corp plans to close most operations on Friday and said nearly 7,000 employees will lose their jobs as the lender becomes one of the biggest casualties of the U.S. housing downturn.”
Countrywide tries to soothe liquidity concerns
Mortgage lender says it has almost $50 billion financing cushion available
By Alistair Barr, MarketWatch
Last Update: 5:09 PM ET Aug 2, 2007
SAN FRANCISCO (MarketWatch) — Countrywide Financial Corp., the largest U.S. mortgage lender, tried to soothe liquidity concerns late Thursday as one of its smaller rivals teeters on the brink of bankruptcy.
Countrywide (CFC
Countrywide Financial Corp (CFC) said that it has experienced no disruption in financing its day-to-day operations and noted that its main mortgage business has access to nearly $50 billion of “highly-reliable” short-term funding as a cushion.
“Our liquidity planning proved highly effective earlier during 2007 when market concerns first arose about subprime lending, and remains so today,” said Eric Sieracki, Countrywide’s chief financial officer, in a statement.
Credit-rating agencies Moody’s Investors Service and Standard & Poor’s reaffirmed their ratings and stable outlook for Countrywide’s banking and mortgage businesses this week, he added.
Shares of Countrywide rose more than 2% to $27.57 during after-hours trading on Thursday. The stock has dropped by more than a third so far this year.
Rising subprime delinquencies have made the big banks that provide crucial financing to the mortgage business more wary. Many of these firms have cut off financing and imposed margin calls on mortgage originators, sometimes triggering bankruptcy.
As of mid-June, more than 50 companies in the subprime-mortgage business have failed, Accredited Home Lenders (LEND)
said Thursday.
Countrywide offers a range of different mortgages, but concerns have increased in recent weeks that subprime trouble has spread. Indeed, in late July Countrywide reported a 33% drop in second-quarter profit and signaled that problems in the subprime-mortgage market have spread to higher-quality home loans. See full story.
American Home Mortgage Investment Corp. (AHM
), the 10th-largest mortgage lender in the United States, announced Tuesday that it hasn’t been able to pay margin calls from some of its creditors, sparking bankruptcy concerns. The stock slumped 90% that day, after being suspended on Monday.
Shares of American Home were suspended again Thursday afternoon.
From Bloomberg:
Jim Rogers Calls U.S. Housing Market One of History’s `Biggest Bubbles’
“The U.S. subprime-market rout that wiped out $2.1 trillion from global share values last week has “got a long way to go,” said Jim Rogers, who predicted the start of the commodities rally in 1999.”
http://www.bloomberg.com/apps/news?pid=20601103&sid=a2Rnaf9tZJbA&refer=news
#213
Country wide’s credit ratings:
“Credit-rating agencies Moody’s Investors Service and Standard & Poor’s reaffirmed their ratings and stable outlook for Countrywide’s banking and mortgage businesses this week, he added.”
These guys will downgrade them after the collapse and the shares have lost most of their values.
You can’t plug in fraud into a mathematical model to calculate risk !!!
Remember Enron ??
#215 in moderation, but marketwatch has another story today:
Private secondary mortgage mkt not functioning: Indymac CEO
So, where is Country Wide getting this “access to nearly $50 billion of ‘highly-reliable’ short-term funding as a cushion”?
Why couldn’t/didn’t these other lenders get access to backing, also?
“The U.S. subprime-market rout that wiped out $2.1 trillion from global share values last week has “got a long way to go,” said Jim Rogers, who predicted the start of the commodities rally in 1999.”
I like Rogers and have read his books… but we should also note the guy has been wrong as many times as he’s been right (he got wiped out in the late 90s in the asian financial crisis.
AntiTrump (214),
Jim Rogers is jumping from one bubble to the next by moving from the USA to Asia. The fact is that the global real estate markets have been on steroids for some time. The city where he is considering relocating to, Singapore, is seeing average real estate appreciation of 25% last year or this year (forecasted). I can’t quite exactly remember which. In some of the more desirable condominium developments, it’s been more than 200% or 300% appreciation in the last few years. If there was a place to be as a buyer, I’d rather be here. Last I heard, he still hasn’t sold his New York apartment since announcing the decision to relocate a couple of years ago. I don’t know if this is an indication of his commitment to his view or simply a weak New York real estate market. Anyone heard otherwise?
http://www.reuters.com/article/newsOne/idUKSIN29515920070705
“So, where is Country Wide getting this “access to nearly $50 billion of ‘highly-reliable’ short-term funding as a cushion”?”
Gary,
I don’t even want to think of the dire consequences that will manifest if CW goes down. The PPT is certainly cognizant of this.
AHM told all 1300 LI workers last night that today is their last day, they are throwing out all 1,300 employees with one day notice and no severance.
I know a few mortgage brokers that are now themselves in mortgage trouble. They bought houses during the peak of the bubble, which also happened to be the peak of their earnings. They believed that they would continue to earn $200k/year forever. I told one of my friends that the good times wouldn’t last forever. He responded that even if the housing market cooled off, he would have lots of refinancing business.
One in particular (a person who dealt with a lot of subprime) tells me he still has reasonable buyer/refinance interest, but has a tougher time finding willing lenders. As a result, his income is less than half of what it was in 2005. He is now worried about his own house.
#218
The Federal Home Loan Banks would be my first guess as an important liquidity source.
http://www.fhlbanks.com/index.html
#177 bi: Youa re so silly, grasshopper, the fun is just starting. It is quite obvious you have never lived through any kind of down amrket. Watch and learn grasshopper.
BC,
What’s the PPT?
Renting [222],
Shame on them. They were right in the middle of this insanity and they failed to recognize it. I understand that the bell does not toll at the top of the market. However, it would seem to be quite apparent, especially to those that had a front row seat for this horror flick. Maybe if they were getting hit over the head by a 2X4, they wouldn’t realize that they were getting a headache. Talk about being blinded by the light.
scribe [225],
Plunge Protection Team;
http://en.wikipedia.org/wiki/Plunge_Protection_Team
I probably should avoid this site (been reading it for over a year) now that I am in the midst of negotiating for a property–I thought we’d get it done 3 days ago, and now I’m equivocating–I like to sleep at night.
Having said that, take a peek [http://forum.brokeroutpost.com/loans/forum/2/148195.htm|here].
And I thought I was losing sleep….
Ack–my bad–I did not realize pipelinks do not work here.
Try this:
http://forum.brokeroutpost.com/loans/forum/2/148195.htm
It’s not this site that made me nervous, though.
Looking at at a Cape May property, bought in March, 2006, for 277K; extensive renovation done, on market August, 2006, for 440K, now at 389K by FSBO, and we’re currently at a bit below that in negotiations.
My mistake was falling in love with the place.
His mistake was falling to disclose up front he had a “business partner” in the real estate investment market.
So we’ll see….
#229
Hopefully those mortgage brokers can fall back on their Mary Kay and Amway sales to get them over this bump in the road.
It’s really pathetic to see the posts lamenting the death of no-doc. They come very close to admitting that their business cannot function without committing fraud.
I dont post much, but I have to relay this story. Blatant fraud in the mortgage industry is still widespread.
A co-worker of mine is buying a house. I overhear him mention something to someone about how sleazy his mortgage broker is. I ask him why, and he tells me the broker tried to get him to sign a federal certification stating that he makes $40,000 more than he does. The broker was trying to secure a no-doc loan without his knowledge. He couldnt believe it. I ask the guy if the broker knew that he was an attorney, and he says yes, the broker knew. Simply unbelievable.
From MarketWatch:
Weyerhaeuser’s quarterly net plunges
Weak U.S. housing market cuts into profit
Weyerhaeuser Co.’s second-quarter net earnings plunged more than 89% on the back of a weak U.S. housing market and various one-time charges, the forest-products supplier’s financial results showed Friday.
Emphasis added
More at link above, Rich
From yesterday’s NJMLS “Hotsheet”:
Cliffside Park
SLD EDGEWATER RD $610,000 9/20/2005
SLD EDGEWATER RD $529,000 8/2/2007
Closter
SLD HOMANS AVE $1,500,000 3/22/2006
SLD HOMANS AVE $1,535,000 8/1/2007 (2.3% / not even in line with inflation let alone commission and closing costs)
Old Tappan
ACT ORANGEBURGH RD $659,000 8/18/2006
SLD ORANGEBURGH RD $545,000 8/2/2007
Ridgewood
SLD S PLEASANT AVE $425,000 8/15/2002
SLD S PLEASANT AVE $495,000 8/1/2007 (3.1%/year)
ACT WALL ST $639,000 3/13/2007
SLD WALL ST $591,000 8/2/2007
ACT LOTTE RD $1,795,000 2/23/2007
SLD LOTTE RD $1,550,000 8/1/2007
224#, 3b,
this crisis is replay of S&L and LTCM crisis. it will eventually push rate down. 10 year up 8/32 again today. the yield will move to 4.5% by year end and under 4% one year from now.
From MarketWatch:
U.S. July ISM services below consensus 58.8%
U.S. July ISM services 55.8% vs 60.7% in June
U.S. July ISM services index slows to 55.8
BC (221)-
This one is worth watching. Countrywide- besides being the US’ biggest residential lender- has its tentacles in every corner of the mortgage world: portfolio loans, wholesale, originate-to-securitize and servicing.
Thru the peak boom years, their most popular product was the “Fast and Easy”: a 95 LTV, stated/stated, with NO CASH RESERVE REQUIREMENTS (note: if you check out the Fast and Easy now, it isn’t the same as it used to be, as only 720+ FICOs can qualify). On top of that, you could build in seller concessions! I have to believe that this was the most popular loan product going in my area from 2003-2005.
I also remember thinking at the time that many of the people buying my listings with this mortgage product seemed to have more money than brains.
bi [234],
Great scenario. Risk exposure is being questioned/repriced, high anxiety in the credit markets. Investors pull back and park it in the 10 year. That sucking sound you hear is liquidity receding. The 10 year does not offer the arm adjuster any solace. The moon shot had nothing to do with interest rates. The bust will follow the same path.
There willl be bigger problems than RE if the 10 year falls below 4%. By the way, JP says 5.5 ffr by year end and 6.00 in early 2008.
That’s arm adjustee.
Prev. Close:1.45Open:0.64High:0.97Low:0.50
AHM hit 50 cents a share.
BSC;
http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=BSC
Dr. Bam (223)-
Nah. These guys mostly inject liquidity into traditionally-underserved areas, usually rural. They provide financing for farmlands and small-town residences. They differ from FHA in that they provide money, not loan guaranty.
BC (226)-
“I understand that the bell does not toll at the top of the market.”
Sure it did. It rang when Angelo Mozilo sold his first block of shares.
#234bi: So what is your point, that the housing market will coming roaring back if the 10 year drops below 4% in a year? Not happening.
And today the market is down around 70 or so, yesteray ypu posted all is well when it was up 100, now down 80, what is your point?
Check out the top ten reasons to buy a home in Newark
http://newjersey.craigslist.org/rfs/388308889.html
243#, how many times the stocks you sold went down over 5% and you feel like you were genius but the stocks went up more than 10% a few months later? similar to that, it is always good opportunity when all the headlights saying it will go much worse.
treasury futures are alreay priced in fed cut. it will bring down short term rate and ARM rate so more people can refin, trade up and initiate new purchase of RE. It is win-win.
other white meat (230)-
What difference does the “partner” make?
Do you think the place is worth less, because it may be a flip, as opposed to owner-occ?
bi (245)-
Please list all holdings of your portfolio here.
I want to get short them.
bi: how many times the stocks you sold went down over 5% and you feel like you were genius but the stocks went up more than 10% a few months later?
I thought you mentioned sometime ago, RE market is not same as Stock market, right?
247#,
i long PPH
i long homebuilders and short lenders
FROM THE TOP OF THIS ARTICLE: “We don’t think the banks will be that forgiving this time around”
It is not the Banks that we have to be afraid of, it’s the Federal Government (whether Rep or Dem) which may want to bail out the Banks with hard earned middle-class $tax from the Treasury. It is called re-distribution of wealth from the poor to the rich…instead of making the rich pay for their stupid investments in CDOs, etc. Anyone remember the S&L scandal back then ? I love free-market enterprise….but with all the subsidies. I often do wonder if we had a true policy of no subsidies, how will us capilalists survive.
BTW, some nice lyrics from Guns N Roses: “Civil War”
———————————————–
“What we’ve got here is failure to communicate.
Some men you just can’t reach…
So, you get what we had here last week,
which is the way he wants it!
Well, he gets it!
No’ I don’t like it any more than you men.” *
Look at your young men fighting
Look at your women crying
Look at your young men dying
The way they’ve always done before
Look at the hate we’re breeding
Look at the fear we’re feeding
Look at the lives we’re leading
The way we’ve always done before
My hands are tied
The billions shift from side to side
And the wars go on with brainwashed pride
For the love of God and our human rights
And all these things are swept aside
By bloody hands time can’t deny
And are washed away by your genocide
And history hides the lies of our civil wars
D’you wear a black armband
When they shot the man
Who said “Peace could last forever”
And in my first memories
They shot Kennedy
I went numb when I learned to see
So I never fell for Vietnam
We got the wall of D.C. to remind us all
That you can’t trust freedom
When it’s not in your hands
When everybody’s fightin’
For their promised land
And
I don’t need your civil war
It feeds the rich while it buries the poor
Your power hungry sellin’ soldiers
In a human grocery store
Ain’t that fresh
I don’t need your civil war
Look at the shoes your filling
Look at the blood we’re spilling
Look at the world we’re killing
The way we’ve always done before
Look in the doubt we’ve wallowed
Look at the leaders we’ve followed
Look at the lies we’ve swallowed
And I don’t want to hear no more
My hands are tied
For all I’ve seen has changed my mind
But still the wars go on as the years go by
With no love of God or human rights
‘Cause all these dreams are swept aside
By bloody hands of the hypnotized
Who carry the cross of homicide
And history bears the scars of our civil wars
“We practice selective annihilation of mayors
And government officials
For example to create a vacuum
Then we fill that vacuum
As popular war advances
Peace is closer” **
I don’t need your civil war
It feeds the rich while it buries the poor
Your power hungry sellin’ soldiers
In a human grocery store
Ain’t that fresh
And I don’t need your civil war
I don’t need your civil war
I don’t need your civil war
Your power hungry sellin’ soldiers
In a human grocery store
Ain’t that fresh
I don’t need your civil war
I don’t need one more war
I don’t need one more war
Whaz so civil ’bout war anyway
Cheers,
Apauliptica.
“treasury futures are alreay priced in fed cut.”
bi,
Wrong.
251#, bob, why wrong?
it was reported in bloomberg and other media:
http://au.biz.yahoo.com/070726/36/1bx52.html
Thrombus (246)
The problem with “partner” has been the delays–he needed to run things past a partner after we had come to an understanding.
I get busy in September, and want to close August 31, which is acceptable to seller as well. I just got caught by surprise. I feel a bit naked without an agent, and spent a bit more of my time drawing up a purchase agreement than I had planned.
And yep, I now know I could have gone to Staples to find some generic agreement.
My naivete does not affect the value of the property; it does, however, affect how I approach this.
Both parties will be happy when and if this gets done. But if it doesn’t, well, there are two other properties we’re ready to bid on. The asking price on both dropped recently (399->369->349K, last change last week; the other 375->325, but I don’t know if any increments in-between).
I’m going paddling down the Delaware tomorrow–I’ll have a clearer head come Monday.
#241
I am referring to the Advance program. Banks can use all types mortgages as collateral to secure funding.
This is an old chart, but it was almost $500 billion back in 2003.
http://www.fdic.gov/regulations/examinations/supervisory/insights/sisum04/home_loan_advances.html
I will see if I can find something newer
Should the FDIC Worry about the FHLB? The Impact of Federal Home Loan Bank Advances on the Bank Insurance Fund
Abstract:
Does growing commercial-bank reliance on Federal Home Loan Bank (FHLBank) advances increase expected losses to the Bank Insurance Fund (BIF)? Our approach to this question begins by modeling the link between advances and expected losses. We then quantify the effect of advances on default probability with a CAMELS-downgrade model. Finally, we assess the impact on loss-given-default by estimating resolution costs in two scenarios: the liquidation of all banks with failure probabilities above two percent and the liquidation of all banks with advance-to-asset ratios above 15 percent. The evidence points to non-trivial increases in expected losses. The policy implication is that the FDIC should price FHLBank-related exposures.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=765604
# 245 bi You say:”treasury futures are alreay priced in fed cut. it will bring down short term rate and ARM rate so more people can refin, trade up and initiate new purchase of RE. It is win-win.”
How can they refinance if many of them have no equity in the house in the first place. Also how many will have damaged credit, do you now suggest that the same lenders who are tighteing standards now, will loosen standards in the next year?
Sorry but your thought process makes no sense. As I have said apparently you have never lived through a rea; estate or perhaps any kind of market bust. Thsi so called strategy of yorus is going to bite you in your butt.
256#,
I am very interested to know how many percentage of ARMs over total mortage loans in tri-state area from 2001 to 2006. My impression was it was very low. It will also help us get better picture if it has break down by township and educational level of borrowers.
#247 LOL
Bi, where was AHM when you told us to buy a couple of days ago?
258#,
before AHM thing, i told you to long homebuilders and short lenders. too bad i did not short AHM
#259 bi
no – I am referring to when AHM first plunged and you recommended buying.
260#, i did not say buy. i said good opportunity. you can go back to check my post.
Here’s your post:
bi Says:
July 31st, 2007 at 2:24 pm
AHM at $1.45. down 86%. good time to make quick bucks
262#, what is wrong with that? why a stock has such a big move, you can always trade it during the day. but i am going to stop talking about stocks. otherwise other people will complain.
last tip:
i am going to long gold and short oil, betting oil will be back to $40+
Tarzan (bi) #251
it will bring down short term rate and ARM rate so more people can refin, trade up and initiate new purchase of RE
The same way rates went down in the early 90’s and saved RE?
“betting oil will be back to $40+”
This is the funniest thing I have seen on this website yet.
#257 bi: That number has been posted before, although I do nto recall what it was, I belive it may have been 1/3 or so.
But you also need to know how many people took out ARM HELOC and Hoem Equirty loans, and not just ARMS, but fixed rates. Ho wmany of those are struggling now, how many have sucked big chunks of their equity, or perhaps all of it.
You stae you were under the impression it was low? Why? You state we need to know township why? are you saying it only took place in low incoem areas, not the case.
Educational level? Are youa ssumimng that only the HS grad truck driver took out hese loans? That is an ignorant statement to make.
You can consider yourself sophisicated, in a sophisicated town, but that does not mean you cannot be stupid, and have used toxic financing.
#263 Goldman says it will hit $100 before year end, not sure they are right either, however, it has a better chance of hitting $100, than of getting back to $40 any time soon.
267#, you will lose money all the time if you listen to the recommendations from sell-side.
#266 BC
I recall it being approximately 1/3 as well.
Guys, let’s all move upstairs to the new thread.
Treasury futures and Fed Fund futures are 2 different products, that’s why.