From the Philly Inquirer:
New Fed snapshot shows a weakening economy
The U.S. economy has weakened since the start of this year as shoppers turned more cautious given the severe housing slump and painful credit crunch, according to a government report yesterday.
At the same time, the Federal Reserve’s new snapshot of nationwide economic conditions said, manufacturers and other businesses had to cope with skyrocketing prices for energy and other raw materials. The businesses’ ability to pass along higher prices to their customers was mixed, the Fed said.“Economic growth has slowed since the beginning of the year,” the Fed reported. Two-thirds of the Fed’s 12 regions – including Philadelphia – “cited softening or weakening in the pace of business activity, while the others referred to subdued, slow or modest growth,” the Fed said.
The report suggested that persisting problems in the housing market and harder-to-get credit were affecting the behavior of individuals and businesses alike, making them think twice about spending and investing.
The Fed said that retailers in a majority of regions described sales as “below plan, downbeat, weak or having softened.”
…
The Fed’s report said companies had to deal with rising energy prices, which translated into increased transportation and shipping costs. Companies also reported price increases for metals, petrochemicals and food.However, “firms’ ability to pass along cost increases by raising selling prices varied,” the Fed said.
Manufacturing activity was reported to be sluggish or to have slowed in about half the Fed’s regions, including Philadelphia, the survey said.
The regions of New York, Philadelphia, St. Louis and Atlanta reported an increased prevalence of layoffs, reduction in workers’ hours or hiring freezes, the Fed said.
…
The Philadelphia View
…
Business activity weakened slightly, and the outlook for the next six months is less positive than previously. Several companies reported hiring freezes.Manufacturers reported declining shipments, new orders and order backlogs. The six-month outlook “is not strong,” with orders expected to fall further. Capital spending is down.
Retailers reported small year-to-year sales drops, attributed to a decline in consumer confidence. Sales forecasts for the year were lowered. Auto dealers said sales were slow.
Overall loans at area banks rose slowly, though commercial and industrial lending eased. All area banks said they were tightening credit standards.
Residential real estate activity remained substantially below a year ago, with many buyers delaying in expectation of lower prices.
From the Express Times:
N.J. legislator wants layoffs, not aid cuts
A key state senator vowed Wednesday to restore the municipal aid slashed in Gov. Jon S. Corzine’s proposed budget through additional layoffs and reductions to state government.
Sen. Paul Sarlo, D-Bergen County, predicted the proposed cuts of more than $168 million to municipal aid would result in increases to property taxes in towns across the state. He said reducing property taxes, instead, should be a priority.
“I commend the governor for proposing an austere budget, but I don’t think that funding for property tax relief should be cut,” said Sarlo, vice chairman of the Senate Budget and Appropriations Committee.
Corzine announced aid cuts last week, when he laid out the spending plan he dubbed a “cold turkey” budget.
From the WSJ:
FHA, Relic of Past, Is Rebounding
Agency Is Becoming
Centerpiece of Bid
To Prop Up Housing
By JAMES R. HAGERTY
March 6, 2008; Page A4
The Federal Housing Administration, a relic of the Great Depression that dwindled to near irrelevance in recent years, is suddenly emerging as the centerpiece of government efforts to prop up the housing market.
Home loans insured by the FHA have become the cheapest and, in many cases, the only alternative for borrowers who can make only a small down payment. The agency is rapidly gaining market share as government-sponsored mortgage investors Fannie Mae and Freddie Mac, stung by combined losses of about $9 billion in last year’s second half, back away from credit risks by adding fees and demanding higher down payments.
The FHA doesn’t make loans but provides insurance, which covers the risks of default for lenders or investors who own loans. That insurance is akin to the guarantees provided by Fannie Mae and Freddie Mac.
Policy makers see the FHA as one of the handiest tools available to keep money flowing into mortgages at a time of growing anxiety about the effects of soaring defaults and falling home prices.
…
The FHA’s role is going to be huge,” says Brian Chappelle, a mortgage consultant who was a senior FHA official in the early 1980s. Some lenders expect the FHA to account for as much as a third of new mortgages by the end of this year, Mr. Chappelle says. That would be up from a low of 1.8% of single-family mortgage originations in 2005 and 2006, according to trade publication Inside Mortgage Finance.
The agency has long been seen as a means to help lower-income borrowers but now attracts some well-heeled people, too. At Toll Brothers Inc., a builder of homes with an average price of around $650,000, executives say more of their buyers may soon be using FHA-insured loans.
The FHA is in some ways returning to its roots as a broad-based tonic for the housing market. When Congress created the FHA in 1934, many banks were failing and housing production had collapsed. Initially, the FHA could insure loans of as much as $16,000, or about triple the median home price at that time, allowing it to serve most of the market. Congress in later decades directed the FHA to concentrate more on the entry-level housing market.
Over the past four months, Fannie and Freddie have imposed fees that lenders have to pay upfront so that loans can be guaranteed by the two companies. Those fees are passed on to borrowers and typically result in slightly higher interest rates. Fannie and Freddie also have increased down-payment requirements in areas where house prices are falling. The FHA hasn’t changed its terms and allows down payments as small as about 3% nationwide.
FHA loans now are slightly cheaper than conventional loans backed by Fannie and Freddie, a reverse of the normal situation. Last week, the average rate on FHA loans was 6.29%, while conventional loans were at 6.36%, according to HSH Associates, a publisher of financial data.
…
The FHA’s broader role exposes it to more risks, stirring fears that taxpayers ultimately may have to bail out the agency. The FHA is “underpricing for the risk that they are taking on,” says Thomas Lawler, a housing economist in Leesburg, Va., who formerly worked for Fannie Mae.
From philly.com:
Trump reports wider loss
Regional slots competition and heavy promotional spending took their toll on casino operator Trump Entertainment Resorts Inc., of Atlantic City. The company said yesterday that fourth-quarter and year-end losses had widened on declining revenue.
“We’re down, but not as much as we could be,” Mark Juliano, chief executive officer of Trump Entertainment, said after the company’s conference call with analysts yesterday.
From the Home News Tribune:
First of Fort Monmouth job transfers to occur in summer
The first transfers of Fort Monmouth employees to a Maryland installation taking over the fort’s responsibilities when it closes are slated to happen this summer.
According to newspaper reports, by last Friday, 221 Fort Monmouth workers had applied for the jobs that will be transferred this summer to Aberdeen Proving Ground.
Fort Monmouth is slated to close by 2011. The Base Realignment and Closure Commission voted in 2005 to shutter it.
The 1,100-acre Army research and development installation sits in the Monmouth County towns of Tinton Falls, Eatontown and Oceanport.
From the Baltimore Sun:
Fort Monmouth workers due to start move to Md.
Some of the first Fort Monmouth, N.J., employees to be transferred to a Maryland installation, taking over the fort’s responsibilities, are scheduled to move this summer.
From the WSJ:
Bernanke’s ‘Principal’
March 6, 2008
We’ve seen some puzzlers over the years, but we’ll admit we never expected to see a Federal Reserve Chairman talking down the capital cushion of the nation’s banking system.
But there it was on Tuesday, the equivalent of a CEO shorting his own stock, as Ben Bernanke encouraged the nation’s bankers to write down the principal on millions of mortgage loans. Voluntary loan modifications aren’t doing enough to stop foreclosures, declared the chief steward of the U.S. financial system. “In this environment,” he said, “principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure.”
Mull over that one for a moment. Mr. Bernanke and the Fed are charged with protecting the soundness of the banking system. The bulwark of such protection is shareholder equity — capital — which is generated in part by income-producing assets known as loans. Yet the Fed chief has now advised that, as a matter of public policy, banks should take a chunk of that capital and transfer it to mortgage debtors. How this additional charge — and new political risk — against bank earnings will ease the mistrust at the heart of the current credit crisis is a mystery.
This came only a few days after Mr. Bernanke had publicly advised Congress that more banks will fail. And it came on the same day that the Fed’s Vice Chairman, Donald Kohn, told Capitol Hill that bank earnings are under increasing pressure. Amid such earnings strain and uncertainty about how far real-estate prices will fall, now seems an especially bad time for a Fed chief to instruct banks to create further losses.
It’s not as if bankers don’t understand their mortgage predicament, or have no sympathy for borrowers. But how, and whether, to renegotiate their loan contracts is a matter for them to decide. They might choose to lower the interest rate on some mortgages, reduce the principal amount on others, or foreclose and repossess homes on the hopeless cases. If the Fed, in its regulatory role, thinks a bank should be more aggressive in taking asset write-downs, it can order that on a bank by bank basis. Elevating principal write-downs to a general banking principle is regulatory overreach.
From the WSJ:
Some Borrowers Hit New Snag In Refinancing
Home-Equity Lenders Get Tougher on People Switching To Cheaper First Mortgages
By RUTH SIMON
March 6, 2008; Page D1
In the latest sign of how the credit crunch is hurting even borrowers with good credit, some home-equity lenders are starting to slam the door on homeowners who want to refinance their primary mortgages.
In some cases, homeowners who in the past would have been easily approved for a mortgage refinancing are finding that they can’t get their home-equity lender to give the go-ahead, which is required to complete the transaction. Others are being told by their home-equity lender that they need to reduce the size of their loan or line of credit.
Approvals from home-equity lenders used to be routine, particularly if the borrower wasn’t increasing the size of the mortgage as part of the transaction. But that’s no longer always the case — even in places where the housing market hasn’t been hit by huge price declines.
Such approvals, known in the industry as “subordinations,” mean that the home-equity lender agrees to stand in second place behind the new mortgage and allow the existing first mortgage to be replaced by another first mortgage.
Many mortgage refinancings continue to go through without a hitch. But some homeowners who want to lower their rates or lock in a fixed-rate mortgage can’t, even if refinancing would save them money and put them in a better position to repay their loans.
“For borrowers trying to improve their situation, this is a nightmare,” says Richard Redmond, a mortgage broker in Larkspur, Calif. That’s because getting a new home-equity loan to replace the old one in order to get a refinancing approved “may be impossible,” he says, as many lenders have significantly tightened their standards as housing prices have fallen.
So much for Alt-A…
From Bloomberg:
UBS Declines on Report `Fire Sale’ May Lead to More Writedowns
UBS AG fell to a five-year low in Swiss trading after JPMorgan Chase & Co. analysts said it probably sold 25 billion francs ($24 billion) of mortgage-backed securities in a “fire sale” and may have more writedowns.
…
“It is highly likely that UBS sold its 25 billion-franc face value prime Alt-A portfolio in a fire sale,” Abouhossein wrote in the note, dated March 5. “We believe UBS would be willing to aggressively reduce structured credit assets to clean up the book.”
UBS marked down about $19 billion last year, posting the first annual loss since the Zurich-based bank was created in 1998. Valuations of AAA rated securities backed by Alt-A loans, which range between prime and subprime in their likelihood to default, fell as much as 15 percent last month, U.S. lender Thornburg Mortgage Inc. has said.
#1 Why can’t NJ due both? Cut aid to the munis and reduce state workers? Let’s get real crazy and even cut down on overtime?
To reduce the deficit you need to
A: cut the budget
B: increase revenues (taxes and fees)
C: Both of the above.
These little munis need to merge. It’s ridiculous we have to underwrite their public budgets plus pay to have the State police patrol their towns.
I’m with Grim to let them merge and keep their old name under the umbrella of a new township, like many larger towns have different sections. Why let these tiny munis suck our money away like ticks on a dog?
Merging them would cut costs immediately as well as reduce future pension and benefit liabilities.
As for property tax relief. Maybe if our state taxes weren’t going to these tiny munis so these quaint little places can avoid paying their fare share of the tax burden our taxes would go down?
Of course sending someone a check for $300 or $600 has a higher visual impact around election time than cutting state aid to the munis so your prop tax drops $25 or $50 a month.
Bread and circuses. Smoke and mirrors.
Grim,
Putting “badonkadonk” in the title of your last post?
Trying to get indexed with some hip-hop sites?
You be buggin’. Pass me some of that gin and juice.
From Bloomberg:
Pending Sales of U.S. Houses Probably Decreased in January
The number of Americans signing contracts to buy previously owned homes fell in January for a third month, signaling no end in sight to the housing slump, economists said before a report today.
The National Association of Realtors’ index of signed purchase agreements dropped 1 percent to 85, the lowest level since the Chicago-based group began keeping records in 2001, according to the median estimate of 27 economists surveyed by Bloomberg News.
The housing recession, into its third year, will deepen as a glut of unsold properties causes prices to keep dropping and prompts builders to cancel projects. The report underscores why Federal Reserve Chairman Ben S. Bernanke has indicated the central bank is ready to reduce interest rates again and urged lenders this week to lower the principal on some troubled loans.
“The imbalance between housing demand and housing supply has continued to grow,” said Ethan Harris, chief U.S. economist at Lehman Brothers Holdings Inc. in New York. “Potential buyers remain hesitant, given expectations of continued price declines and recession fears.”
The agents’ group began reporting pending home resales in March 2005 and has supplied historical data back to January 2001. The gauge is considered a leading indicator because it tracks contract signings, while the sales report tracks closings, which typically occur a month or two later.
Purchases of existing homes fell 0.4 percent in January to a 4.89 million rate, 33 percent below the peak reached in September 2005, the Realtors’ group said last month.
Nationally, home prices fell 9 percent in the fourth quarter from a year earlier, the biggest decline in 20 years of record-keeping, according to the S&P/Case-Shiller home-price index. Economists at Lehman Brothers Holdings Inc. forecast prices will decline an additional 10 percent.
Delinquencies and foreclosures likely will continue to rise for a while longer,” Bernanke told bankers this week in Orlando, Florida. The number of properties going into foreclosure will probably surpass last year’s estimated 1.5 million, he said.
Foreclosure ‘crisis’ is overblown
Sure, there are pockets of pain around the US, but it’s not as if most Americans are losing their homes. More than 99% of homes aren’t in foreclosure.
By Scott Burns
A recent list of year-end mortgage foreclosure rates in 100 top metropolitan areas drew a lot of attention. Released by RealtyTrac, a company that compiles data on home foreclosures, the list showed the number of foreclosure filings in each metro area, the percentage of homes being foreclosed and the percentage change from the previous year.
Though the report had some dismal news — such as the nearly 4.9% foreclosure rate in the Stockton, Calif., area — a close look at the data also provides some reassuring information. It tells me, for instance, that the foreclosure crisis is a regional problem, not a systemic one. It could become a systemic problem, of course, but we’re a long way from that now.
This news will disappoint the gloom-and-doom crew and all those seeking the excitement of financial upheaval. But it may be time to temper our worry and take a closer look at some of the year-over-year foreclosure statistics:
http://articles.moneycentral.msn.com/Banking/HomeFinancing/ForeclosureCrisisIsOverblown.aspx
Expansion or Recession? How is the economy in NJ?
http://www.usatoday.com/money/economy/2008-03-04-local-differences_N.htm
#12 That author is a shill. He thinks it’s great houses have doubled in value in 5 years.
If housing is doing so great, why have banks written off over 100 billion in asset back securities in the last few months?
He also probably believes in efficient market theory.
Let’s see him write a follow up story in 2 years. I bet his 5 year figures aren’t going to be too rosy.
JB,
Can you take a quick look at this listing to see if it was priced well below available comps (also wondering if it’s listed by the broker who likes to start low to create bidding). If you could throw up the listing history too.
GSMLS 2488995
Thanks
Rich,
It’ll take me a while to find comps, but it is listed by that broker. However, given that it went ARIP 2 days ago, at 21 DOM, the price can’t be all that wrong.
Is JB a country music aficionado? I seem to remember hearing a (bad) country song with the same title as that post a few years ago?
The Pending Home Sales numbers are due out at 10:00am.
I have the February Contracts spreadsheet, however, I haven’t posted it yet.
Rob,
It popped into my during my usual pre-coffee delerium. First the East Rutherford Mayor calls the Ferris Wheel “Honky Tonk“, I’m not sure why, isn’t there one in London? Then, the builder has the nerve to compare the Pepsi Wheel to the Eiffel Tower? Is it any wonder why the world hates us? Maybe he is right and this thing is nothing more than a Chunky Pam version of the Eye.
Not Work Safe..
http://www.youtube.com/watch?v=T9VzEulip9Q
“Lord have mercy, how’d she even get those britches on.”
I hear this video was shot in a typical NC watering hole. Another reason to go?
grim: where the h3ll do you dig up this garbage?
clot: I was at Whitewashed Cue (a.k.a. Danny Meyer’s Blue Smoke) yesterday and got the Memphis Ribs in your honor.
NJ fans of Chunky Pam will be disappointed to learn that Chunky Pam is nothing more than a caricature, a made-up character.
The woman behind the character, Meredith Dimenna, is real musician and producer. I must note that she cleans up well and actually has talent.
I know you are all as upset as I am. However, this will not derail my lobbying efforts to make “Dirty Jerzzy” the New Jersey State Song.
Grim I now need eye bleach. I predict the Ferris wheel will be looked at with the same regards as the diving horse and the funhouse in Asbury Park. NJ and You tacky together.
JB (16),
Don’t bother digging up comps. Being that it is that broker answers my question.
Doyle,
You out there in the ether?
Re: Biz finding it hard to pass price increases to consumers…. Wouldn’t it be a hoot if business had to cut the obscene CEO, BOD and other exec salaries and bonuses, etc., instead??? That would be the beauty of this whole thing. In the end, the consumer is *always* in charge. (Same thing I used to say about it *always* being a “buyer’s” market in real estate.)
Carlyle Fund Gets Default Notice After Margin Calls
http://www.bloomberg.com/apps/news?pid=20601087&sid=a8FCr5wj.Wyk&refer=home
These jacks rejected me for a job, I guess you need a lot of experience to go broke.
Heeeeeee Heeeeeeee
Corzine to revive NJ economy with a Ferris wheel.
“Don’t expect residents of Bergen County, New Jersey, to be first in line for a ride on the Ferris wheel going up in their backyards, the tallest in the U.S.”
http://www.bloomberg.com/apps/news?pid=20601109&sid=akIiJKjdCC9I&refer=home
JB,
If you haven’t already I’ve updated NJMLS February Contract data and sent it along.
Rich
bruiser Says:
March 6th, 2008 at 12:21 am
JBJB, 17
“I could light up the Knicks for at least a double-double, and I’m 5′7″ 155 lbs of whiteness”
Classic.
#12 – Oh well, if everything is much rosier than the press is reporting, you won’t be needing that bailout then.
lisoosh Says:
March 6th, 2008 at 8:00 am
“East Rutherford has an “image”?”
lisoosh,
Yes, the final resting ground for Jimmy Hoffa. Either below section 121 or 101. Flip a coin, which end zone?
“Credit Suisse Workers Encouraged To Seek Employment Elsewhere”
http://dealbreaker.com/2008/03/credit_suisse_first_years_enco.php
Oops I did it again!
TMA said in a filing with the Securities and Exchange Commission that it failed to meet a margin call of about $28 million, triggering a string of cross-defaults. The firm’s shares lost nearly 60% in Frankfurt trading.
“At the same time, the Federal Reserve’s new snapshot of nationwide economic conditions said, manufacturers and other businesses had to cope with skyrocketing prices for energy and other raw materials.”
Chi,
That’s the big deal.
Bost: I am actually shocked at the ferocity of the pejoratives used against Bergabe. He is really teeing off people with his “candor”, which is perceived as a lack of circumspection.
“Sure, there are pockets of pain around the US, but it’s not as if most Americans are losing their homes. More than 99% of homes aren’t in foreclosure.”
50.5,
That’s great news. Abandon Hope Now, Lifeline, Freeze frame, etc.. The crap actually sounds like some game show. Stop playing games. Start rasing rates, cut govt spending, blow out the dead wood and bury dead man walking. We can then all get out our flags and celebrate a born again dollar.
The problem is how do you save subprime fraudsters, resuscitate the banks and support the dollar? I know, lay down and take a couple Tylenol’s.
chi [35],
It’s not BB’s fault. He was dealt an impossible hand.
Many think the current fed is too transparent. Maybe we are better off with the great Wizard, behind the curtain? Nobody ever knew what he was spewing. It appeared he was in control. The markets reacted accordingly. We now have some fed head talking every day. Free and easy to view their disagreements. Troubling to the markets.
From MarketWatch:
U.S. weekly jobless claims fall 24,000 to 351,000
Continuing claims highest since September 2005
Initial filings for state unemployment benefits fell to their lowest level since late January in the latest week, the Labor Department reported Thursday, even as continuing claims rose to their highest level in more than two years. Initial claims for the week ending March 1 fell by 24,000 to 351,000, hitting their lowest mark since Jan. 19. Continuing claims climbed by 29,000 to 2.83 million during the week ending Feb. 23. That was the highest since Sept. 24, 2005.
posted this yesterday amidst all the political discussion to no avail…
sorry if this idea has been tossed around already but…….
can someone take the weekly sales from
http://www.buyinginbergen.com/sales.html
and get a full history for each sale?
– olp, lp, relistings, dom, etc…
i would do the legwork myself but i don’t have that kind of access…
i think it’d be very interesting to see… kind of like being able to see the cards when you’re watching poker on tv…
i would even put the weekly results into a spreadsheet/database myself for everyone’s viewing pleasure…
“UBS Declines on Report `Fire Sale’ May Lead to More Writedowns”
That CAN’T be true!
bi said there’d be no more writedowns!
MLS#: 2433313 enjoy…
India’s Reserve Bank Director recommending Gold, BP, Euro.
Dream?
http://www.gulf-daily-news.com/Story.asp?Article=210697&Sn=BUSI&IssueID=30352
Any info 2461588 dom,olp,address.Thanks.
Re Corzine’s Ferris Wheel,
He should name it the Carla K, people might pay a few million to ride it
#24 Rich
I am here. I saw you doing some digging…
he [44],
Is there a dancing pole attached?
#15-15
Grim – Rich in NNJ,
I can tell you that it did definitely go over List Price.
“Is there a dancing pole attached?”
Yes but it requires the typing of several amorous emails and the purchase of a waterfront condo before entry.
Jon’s been riding it.
It’s not BB’s fault. He was dealt an impossible hand.
BC,
I can’t believe you actually wrote this. He’s made several mistakes and it’s early in his tenure.
After Dow was down 8% earlier in the year he lowered rates 50 BP just cause the Larry Kudlow and Cramer and the talking heads were screaming for one.
Good buddy of mine got hired not long ago in Fort Monmouth, N.J. Very sad he finally got a good job in a decent commute distance and now he is getting screwed because the move co-insides with the housing collapse. In a way he should have known but seriously how long have they been talking about closing Fort Monmouth, N.J.
On a positive side he is smart guy. During the housing boom he didn’t buy himself into debt but saw it as a great opportunity to refinance.
The question he has now is does he sell and move or does he find another job. Judging from how long it took him the last time to find the Fort Monmouth, N.J position I’m leaning toward there goes another leaving the state. I never priced out MD to know if he is going to be ahead by the move but I’m sure he is getting tired of NJ BS. Too much uncertainty, no stability, no way to live.
Grim thanks for covering this. I have been saying for a while when has good news come out of Trenton but this is close enough.
Another buddy of mine threw in the NJ towel and is talking about going to CT.
make [50],
Nor can I.
CHICAGO (MarketWatch) — The percentage of mortgages that were in foreclosure hit a record high in the fourth quarter, while mortgage delinquencies rose to a 23-year high, the Mortgage Bankers Association said Thursday. A record 2.04% of U.S. mortgages were somewhere in the foreclosure process at the end of the year, while a record-high 0.83% of loans entered foreclosure in the fourth quarter, the trade group’s quarterly survey found. More homeowners fell behind on payments as well, with 5.82% of loans past due in the quarter. That was the highest delinquency rate since 1983. MBA Chief Economist Doug Duncan said declining home prices were the driving force behind the foreclosure record.
#9 Because Corzine is a moron and a scam artist. He is using the reverse of what needs to be done to balance a budget.
Increase taxes to a point thats out of control then years later start trimming the excess spending?
Frankly he will never care about the common person in NJ because he is a millionaire. He is trying to make a state of his peers and unless your in his income bracket hes taxing you out of the state until you move.
Oh your not rich well we need to eliminate you.
Push Trump to be your next gov.
Trump wants real estate to rise thats where he made his money and continues to make his money. He wants everyone to make money to spend on his housing and casino’s.
Get someone in office who stands to benefit from a strong NJ economy and stands to lose from a weak NJ economy. – Trump is someone in that catagory.
Not some jerk who who has nothing to lose because of 5K tax increases accross the board. Higher tolls mean nothing to Corzine. Its chump change. 5K tax increase is nothing to the guy. 5K tax increases to Trump so he has problems selling real estate is a problem.
Find someone with something to lose by a poor economic standpoint in NJ and vote him into office.
http://www.cnbc.com/id/23489614
Thornburg Mortgage said on Wednesday its failure to meet a margin call has triggered defaults under a variety of lending agreements and its obligations under those agreements are “material.”
The shares of the “jumbo” mortgage lender [TMA 1.34 -2.06 (-60.59%) ] plunged $1.42, or 41.8 percent, to $1.98 in after-hours electronic trading.
Mitchell — “He is trying to make a state of his peers and unless your in his income bracket hes taxing you out of the state until you move.”
I’m not rich nor am I trying to defend Corzine, but looking at federal data…it doesn’t appear that we “commoners” pay a lot (relatively speaking) of the federal income taxes.
“The share of taxes paid by the bottom 50 percent of taxpayers is 3.6%”
“The share of taxes paid by the top 1 percent of taxpayers is 33.7%”
If NJ state income tax is along those lines, then wouldn’t increasing NJ taxes get more out of those rich folks???
From Bloomberg:
U.S. Mortgage Foreclosures Rise as Owners `Give Up’
U.S. mortgage foreclosures rose to an all-time high at the end of 2007 as borrowers with adjustable-rate loans walked away from properties before their payments rose, the Mortgage Bankers Association said today.
“We’re seeing people give up even before they get to the reset because they couldn’t afford the home in the first place,” said Jay Brinkmann, vice president of research and economics for the Washington-based trade group.
New foreclosures jumped to 0.83 percent in the fourth quarter, the highest ever, from 0.54 percent a year earlier, the group said in a report today. About 40 percent of all foreclosures are homeowners with prime or subprime loans who couldn’t make their payments before the reset, Brinkmann estimated in an interview.
Another 23 percent are borrowers who received some form of loan modification, typically a freezing or a reduction of their rate, and then default, he said.
“It comes down to an overstretching of buyers to get into homes they couldn’t afford and an overextending of credit by lenders who were more willing to take risk,” Brinkmann said.
The share of all home loans with payments more than 30 days late, including prime and fixed-rate loans, rose to a seasonally adjusted 5.82 percent, the highest since 1985, the bankers’ group said in today’s report.
#19 You should see the place I get coffee in the morning. Good thing I have 30 mins drive to the office to settle down. Its like they combined hooters and the game twister into a drive through coffee shop.
Great News – lets get those bums out my next trade up home!!
TMA is going down baby!!!!! The nuevo rich alt a types have their balls tied in a knot as their jumbos reset.
#39
am i the only one that wants to see this kind of data? wouldn’t it benefit potential buyers (as many of us are on this board) to see how actual properties got sold? their dom, olp, etc…
it would give a better picture of our down market than just seeing a lowball/comp-killer once in a while…
no?
sorry #56 was a repeat…Jumbo mortgages are not subprime are they? (sarcasm here)
#57. You using poor numbers to gauge your part of taxation or making excuses to justify the taxes you pay.
When property taxes increase in NJ in the last couple of years what what the reason behind the thinking that people in NJ had the money and needed to pay more?
By your logic NJ home owners deserved property tax increases because they pay the lowest portion of taxes.
Tea party anyone?
Does anyone know if the bank must honor my lease on a home if foreclosed?Don’t see why they wouldn’t take my rent & put house on market to take possession at end of lease by buyer(I maintain the house utilities etc).Or do I have to get out(love to plead that one in front of a judge with my 3 kids).Not in foreclosure to my knowledge but before getting another year wanted to know.
Doyle,
Sorry, damn job is getting in the way…
Anyway, as Grim pointed out this broker is notorious for listing homes well below market value in order to create a draw and a bidding war.
They’ve been successful in the past in this area with this type of marketing strategy.
These homes always sell over list, question remains is how they sell compared to comps in the area.
(58)
Another 23 percent are borrowers who received some form of loan modification, typically a freezing or a reduction of their rate, and then default, he said.
But, but…
#65 Rich,
Gotcha, Grim mentioned this in the past and my friend is well aware, hence his bid over list. He will only bid what he is comfortable with based on what he thinks the home is worth and how much he wants it. I commend him on not getting caught up in a bidding war and staying within a price range he is comfortable with.
It still stings though…
jlx,
It’s not a bad idea, just a very time consuming one.
Each sale will have to be tracked by address (per town) instead of by MLS.
Doyle,
It still stings though…
Agreed. I’ve been there.
68 rich
aah, i see…
if i had access i’d do it myself since i like that kinda stuff, but since i don’t, i guess there will be no list of weekly sales with full history… oh well…
So it appears XHB is back down to 119. It looks like BI’s call for the bottom in the homebuilders was premature…yet again.
How does a ferris wheel stimulate an economy?
Is there a Ferris Wheel Elitist group only millionaires understand?
Waiting for the first home listing:
Beautiful Victorian home that will be conveniently located within 5 mins to the Xanadu Ferris Wheel.
I think I’m going to keep renting.
All is well, all is well!
From MarketWatch:
Pending home sales index flat in January
In a sign that home sales may be stabilizing, an index of sales contracts on previously owned U.S. homes was flat in January, the National Association of Realtors reported Thursday, though the level was down almost 20% from the prior year.
The index is considered a leading indicator of existing home sales.
By region, January’s pending home sales index fell 4.1% in the Northeast and 6.1% in the South. The index rose 13.0% in the West and 0.6% in the Midwest.
“This additional sign of a stabilizing market is encouraging, and our members are telling us there’s been a pickup in shopping activity,” said Lawrence Yun, NAR chief economist, in a statement. “Our hope is that the increased traffic of buyers looking at homes will translate soon into more contract offers.”
Joseph Brusuelas, U.S. chief economist with IDEAglobal, wrote that it’s premature to call a bottom or stabilization in the housing sector.
“Prospective buyers may be probing the market for deals, but we strongly expect any surge in purchasing activity to be a number of months, if not years away,” Brusuelas said.
In December, the pending home sales index fell 1.2% from the prior month, compared with the prior estimate of a 1.5% drop.
NAR sees existing-home sales remaining flat, close to an annual level of 4.9 million, in the first half of the year. The group expects total 2008 sales of 5.38 million.
The aggregate existing-home price is projected to fall 1.2% to a median of $216,300 this year, according to NAR.
[Emphasis added]
———-
NJMLS Bergen County January Sold & Under Contract (Pending Sales)
Year Sold U/C
1995 465 573
1996 501 551
1997 548 681
1998 569 797
1999 630 614
2000 506 647
2001 583 548
2002 638 730
2003 743 673
2004 664 680
2005 670 684
2006 528 580
2007 553 682
2008 369 477
Sales down 33.3% and U/C down 30.1% Y-O-Y
From MarketWatch:
SUBPRIME TODAY
Carlyle affiliate fails to make margin payments
UBS may have dumped $24 billion Alt-A portfolio
European Central bank stands pat
Bank of England holds rates steady
Citigroup not tapping Dubai agency for funds
French bank Natixis says not interested in acquiring Societe Generale
Temasek says investments in U.S. not influenced by Singapore government
Bankrate: Fixed mortgage rates fall in latest week
Details to headlins at link above, Rich
Take 1-1-00 home prices and add inflation and if you pay a nickle more you are over-paying. The game is over.
More like turn of the century colonials in the East Rutherford area, all in varying stages of decay.
You don’t have to honor an illegal contract. If the home was listed as a primary residence and owner illegally rented it. good luck.
Mikeinwaiting Says:
March 6th, 2008 at 10:51 am
Does anyone know if the bank must honor my lease on a home if foreclosed?Don’t see why they wouldn’t take my rent & put house on market to take possession at end of lease by buyer(I maintain the house utilities etc).Or do I have to get out(love to plead that one in front of a judge with my 3 kids).Not in foreclosure to my knowledge but before getting another year wanted to know
Crap, post 74 “emphasis” was supposed to end after fell 4.1% in the Northeast.
From MarketWatch:
Fannie Mae, Freddie Mac shares drop as foreclosures rise
Shares of mortgage-finance giants Fannie Mae and Freddie Mac fell sharply on Thursday morning, as delinquency rates on mortgage loans rose in the fourth quarter. Shares of Fannie Mae were lately off 8%, while Freddie Mac’s shares were down 6.4%. Earlier Thursday, the Mortgage Bankers Association reported that the delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 5.82% of all loans outstanding in the fourth quarter of 2007. That’s up 23 basis points from the third quarter of 2007.
I’ve been learing a lot from all of you over the past month or so and want to thank you all for your insights. Question: my Ocean City realtor keeps telling me that the OC market is going great…59 sales last month. (if this is true, why does it seem like he has more than enough time to keep bugging me?) It looks to me like prices still need to come down more, but he keeps insisting that the current askings are right on. Anyone with insights on current state of OC market.
Tough day for financials
From MarketWatch:
S&P downgrades Washington Mutual, places on negative watch
Standard & Poor’s Ratings Services said Thursday it downgraded its long-term counterparty credit rating on Washington Mutual Inc. to BBB from BBB+, and its long-term counterparty credit rating on Washington Mutual Bank to BBB+ from A-. S&P placed all of Washington Mutual’s ratings on a negative credit watch. “These rating actions reflect our expectations for a more severe residential mortgage credit cycle than we had anticipated at the start of 2008,” said Victoria Wagner, an S&P credit analyst, in a statement. “We now believe that the severity of losses on all residential mortgages will be higher that we had thought and that the weak housing market will now be a longer cycle.” Shares of Washington Mutual fell 6.5% to $11.96 in morning trading.
#53 BC Bob: Do not tell 50.5
Ouch
Thornburg Mortgage shares fall 60% to $1.36
RAIT Financial Trust shares fall 11.6% to 5.79
MFA Mortgage shares fall 12% to $7.61
Anworth Mortgage shares fall 21% to $6.95
Annaly Capital shares fall 19% to $15.53
Capstad Mortgage shares fall 22% to $12.73
iShares Mortgage REIT ETF falls 14% to $22.36
S&P should have listened to Clot last year and downgraded WaMu back then :)
#55 Good Night Mitch
#67 Doyle: Nobody of sound body and mind should be getting caught up in a bidding war.
#42 BcBob,
What else is there to say? I’ve said it many times before – it’s been hard for people overseas whose earnings are pegged to the US Dollar.
There are a lot of Indians in the Middle East, since it’s just a 2.5 hr flight from India. Certain Middle East countries do not allow temp workers to buy property. So these folks keep renting and hoping to save to return to India to buy property. Or die a renter living in the Middle East. But amidst earning in a local currency pegged to the USD, and then converting it to an appreciating Indian Rupee currency when they return to India, they’re taking in on the chin big time to the tune of 20-25% loss in purchasing power.
anybody catch CNBC today, CNBC commented that the market is getting comfortable with $100+ oil and that the next new upside to oil should be $120.
$150 oil in 08, here we come baby!
10:
You’re so 1990s.
oh and it doesnt matter if this is an election year, GW is already complaining that OPEC wont help him out by increasing production.
ChiFi (21)-
If you can’t get to The Rendezvous, Blue Smoke’s Memphis Ribs are a good fascimile.
Damn you, you made me hungry!
has anyone here tried or considered inking a supply contract for home heating oil now for delivery in winter 08/09?
John 78 Thank you.I guess I’ll just have to roll the dice on that one.There are plenty of homes to rent but moving is a nightmare & I have a real good deal.Would be in the same boat any house I rent as they were not bought with intent to rent.
“Commercial real estate is set to generate sizable write-downs for Wall Street, which means trouble for bankers involved in the sector.”
“Average compensation for real estate investment bankers dropped 10 – 15 percent in 2007 and looks to post a larger decline this year, Eric Moskowitz, head of strategic consulting for Options Group, told eFinancialCareers.”
“Meantime, Goldman Sachs Analyst William Tanona estimates six bulge-bracket institutions will slash commercial property assets by a net $7.2 billion in the first quarter, according to The Wall Street Journal. That’s a four-fold increase from the fourth quarter, and lies about midway between Tanona’s estimates for this quarter’s combined write-downs from collateralized debt obligations ($10 billion) and leveraged loan commitments ($5.8 billion).”
http://news.efinancialcareers.com/NEWS_ITEM/newsItemId-12945
“GW is already complaining that OPEC wont help him out by increasing production.’
kettle,
He’s barking up the wrong tree.
Mike (64)-
But…but…I thought there was no downside to renting.
If the bank FK’s, you’re out (if they feel like tossing you). Even if you’re Mother Teresa and a leper colony. Leaseholds have no claim to occupancy rights in a FK.
Of course, if you agree to keep paying rent and allow a lockbox on your door for showings, the bank will probably let you stay until the joint gets sold.
dream (84)-
“S&P should have listened to Clot last year and downgraded WaMu back then :)”
Better yet, S&P should now cede control of its operations to me.
MC Clotpoll,
If your tour guide financial professional position is nnot paying your mortgage you might want to look into a commodities dealer or trader type position and then you can become a comodities professional.
Just leave Hip Hop alone. The last thing I need is my kids to want to me the next Clot.
Clotpoll Says:
March 6th, 2008 at 12:06 pm
ChiFi (21)- If you can’t get to The Rendezvous, Blue Smoke’s Memphis Ribs are a good fascimile.
Damn you, you made me hungry!
yo’: Memphis Baby Back Ribs Our leanest rib, with Magic Dust and Original Sauce…..washed down with three chilled Patron reposado…
OH and about 2 gallons of water……
95 BC Bob,
I know, but that is the excuse he is using publicly.
MC Clot in action….
http://www.youtube.com/watch?v=tK0LO9L-uYc&feature=related
BC,
How fast do you think the Dow can get to a 9 handle?
Can we do it in Nov 2008 just in time for elections? It would be fun to see how fast we get out of Iraq when our creditors pull our plug and we can’t finance this nation building empire!
Remember guns or butter slogan. McCain is soooo toast.
make (98)-
“…you might want to look into a commodities dealer or trader type position…”
You really have no idea. And, you probably shouldn’t want one.
WASHINGTON (MarketWatch) – The net worth of U.S. households fell by $533 billion, or a 3.6% annual rate, in the fourth quarter of 2007, the first time total wealth had fallen since late 2002, the Federal Reserve reported Thursday. For all of 2007, household net worth rose 3.4% to $57.7 trillion, the slowest growth in five years. After the effects of inflation are included, real net worth fell for the year. Household borrowing rose at a 5.6% annual rate, less than half the debt growth seen during the credit boom years in 2003 through 2005.
kettle [92],
Buy options on Jan or Feb 2009 heating oil?
Clot is a commodities dealer, he’s a part time RE broker.
BIG NEWS- just emailed into our mortgage office:
NEW FHA LIMITS: Hunterdon, Somerset:
1-family, $729,750
2-family, $934,200
3-family, $1,129,250
4-family, $1,403,400
BC (106)-
No, but I stayed in a Holiday Inn Express last night…:)
Hmmm…
$42,102 in cash can now take down a 1.4 MIL+ 4-family…I can claim owner-occ to make things go easier…I can finance all my closing costs & prepaids…I can jam the 4-fam full of illegals & charge each $900/month in rent…
More on ’07 Q4 foreclosures
From MarketWatch:
Foreclosures hit another record high
Delinquencies in 4Q at their highest since 1985: MBA
The rate of mortgages entering foreclosure was at it highest level in the history of the MBA’s quarterly national delinquency survey and the percent of loans somewhere in the foreclosure process also hit its highest level. The delinquency rate of loans past due but not in foreclosure was at its highest since 1985.
“Declining home prices are clearly the driving factor behind foreclosures, but the reasons and magnitude of the declines differ from state to state,” said Doug Duncan, chief economist of the MBA, in a news release.
…
During the fourth quarter, the rate of loans entering the foreclosure process was 0.83% of all loans outstanding, on a seasonally adjusted basis, up from 0.78% the previous quarter and 0.54% from a year ago.
The percentage of loans somewhere in the foreclosure process was 2.04% of all loans outstanding, up from 1.69% and 1.19% a year ago.
And judging by the delinquency rate, which does not include foreclosures, there could be more trouble brewing. The seasonally adjusted delinquency rate for mortgages was 5.82% of all loans outstanding in the fourth quarter, up from 5.59% the previous quarter and 4.95% a year ago.
Overall, the total percentage of borrowers who were not current on their mortgage was 7.86% in the fourth quarter, Duncan said.
During a teleconference with reporters, Duncan said that the MBA doesn’t expect foreclosures to reach a peak until late this year.
…
Increasing defaults on both prime and subprime loans led to the increase in foreclosure starts, and problems were most prevalent in adjustable-rate mortgages.
The percent of prime ARMs entering foreclosure rose from 1.02% in the third quarter to 1.06% in the fourth, and the rate of subprime ARM foreclosure starts rose from 4.72% to 5.29%.
But a look at the increases over the year shows how bad things have gotten: The foreclosure start rate for prime ARMs increased from 0.41% to 1.06% from the fourth quarter of 2006 to the fourth quarter of 2007, and the rate of subprime ARMs increased from 2.70% to 5.29%.
The two states represent 21% of all loans outstanding, but accounted for 30% of foreclosure starts in the country. The states accounted for 39% of all prime ARMs outstanding, but 47% of prime ARM foreclosure starts. California and Florida represented 29% of all subprime ARMs, 36% of subprime ARM foreclosure starts.
Michigan, Ohio and Indiana have the highest percentage of loans in foreclosure, but they have experienced relatively little increase over the last year in the rates of loans entering the foreclosure process, the MBA reported.
AP: The Fed says Americans’ percentage of equity in their homes has fallen below 50 percent for the first time on record since 1945.
Kettle #88…there may be other troubles for oil. If it closes at 105 that will force the puts, and there are a lot of shorts out there. If they are called in oil can go higher. Not that anyone is comfortable with that
Dear REALTOR®,
2008 is NAR’s Centennial, marking the 100th year that REALTORS® have proudly served as The Face of Real Estate. We should all be proud because we all contributed to this historic event.
NAR has developed these tools to help you commemorate the yearlong Centennial celebration!
Members are encouraged to utilize NAR’s Centennial logo in 2008. To make it easy and convenient for you, NAR has posted numerous options of the downloadable logo online as well as rules for utilizing this logo correctly.
Click here to download the Centennial logo and review usage guidelines.
Happy, new Realtor pins.
Yeah, that’s the ticket…
“The Face of Real Estate”
Real estate’s face caught on fire and it looks like someone put it out with a track shoe.
112 house hunter,
there are a number of troubles for oil. what people are comfortable with is irrelevant, there are market and geologic forces driving the increases
From the Washington Post: (apologies if it was already posted)
The Housing Fix
Gloom. Doom. Calamity. Home prices are tumbling. We’re bombarded by somber reports. But wait. This is actually good news, because lower home prices are the only real solution to the housing collapse. The sooner prices fall, the better. The longer the adjustment takes, the longer the housing slump (weak sales, low construction, high numbers of unsold homes) will last.
It’s elementary economics. Pretend that houses are apples. We have 1,000 apples, priced at $1 each. They don’t sell. We can either keep the price at $1 and watch the apples rot or cut the price until people buy. Housing is no different.
Even many economists — who should know better — describe the present situation as an oversupply of unsold homes. True, there is about 10 months’ supply of existing homes as opposed to four months’ a few years ago. But the real problem is insufficient demand. There aren’t more homes than there are Americans who want homes; that would be a true surplus. There’s so much supply because many prospective customers can’t buy at today’s prices.
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/04/AR2008030402330.html?nav=most_emailed
The whole enchilada…
From AP via Yahoo:
Homeowner equity is lowest since 1945
The Federal Reserve says Americans’ percentage of equity in their homes has fallen below 50 percent for the first time since 1945.
The Fed’s U.S. Flow of Funds Accounts shows homeowners’ percentage of home equity slipped to a revised 49.6 percent in the second quarter of 2007 and declined further to 47.9 percent in the fourth quarter. It marks the first time homeowners’ debt on their houses exceeds their equity since the Fed started tracking the data in 1945.
Home equity is equal to the percentage of a home’s market value minus mortgage-related debt.
On average, housing is Americans’ single largest asset. Economists expect falling home prices to continue to eat into equity.
“There’s so much supply because many prospective customers can’t buy at today’s prices.”
Can’t or Won’t.
I just did a tax search and found that my landlord has the house i rent mortgaged for more then it is worth……. :( guess i should have checked that before i rented
Not good
oh and he has a tax lien for unpdaid taxes….
my rent is maybe 3/4 of the minimum mortgage payment assuming 30yr fixed at 6%
kettle-
Thank God for Summerfield Suites.
vodka-
Sounds like a great time to make him an offer…
The price of oil can be brought down with five simple steps;
1. Regulate or Nationalize Big Oil to control prices and eliminate speculation (like Venezuela).
2. Have all Americans trade in their SUV’s (Mandatory), for a Morris Mini or equivalent (like Europe).
3. Restore Nationwide shipping to railroads with only local trucking (like Europe).
4. Build more Refineries.
5. Build more Nuclear Power Plants.
the house is mortgaged for 110% of the 2007 high. so Bof A gave this guy 110% as of this past summer. does anybody wonder why the banks are in trouble, or the borrowers for that matter
RE: (13):
Thought Naples was dead – looks like usa today says green
confused, i agree with steps 2-4, but 1 wont help. Speculation is not what is keeping oil prices high. Speculation may/ proabaly has caused fluctuation both ways, but is not the root cause.
Current models also suggest that decreased oil consumption will not help, as there is enough demand in india and china to eat up and savings our reduction produces. Its kind of a sick use it or loose it scenario
#126 Kettle.
Buy the lien from the tax sale. It could make negotiating you stay a lot eaiser.
Clott,
I wouldnt touch the neighborhood i live in. After the fact, i have done the research, and there are at least 5+ homes for sale in sight of my front door and all are heavily leveraged and have asking prices that are simply laughable for the what the buildings are. This is one of the neighborhoods that is going to fall hard, from what i have seen
And yes perhaps i should have checked this before renting…. oh well, live and learn
125. The reason for number 1 is, price controlls under regulation will lower the cost by not allowing the mega billions profits for a strategic industry. Certain industries are critical and need to be regulated, share holder be damned.
PGC
please explain. I have heard of buying tax liens but know nothing about it. The lien is for less then $50 and bought by US Bank
The Federal Reserve says Americans’ percentage of equity in their homes has fallen below 50 percent for the first time since 1945
I wonder if 2009 will see us go from 1945 to 1929.
confused.
Price controls are a very bad idea. Look at china and how ell price controls are working for their oil supply! price controls on oil will almost guarantee shortages
confused,
i would consider the idea of some sort of action against the oil companies, however it goes against most of my principles and i think what we are seeing with the oil compnaies is being driven by a number of factors ( basically peak oil, but this is oversimplified) that are not easily simplified
Mitchell – #59
WHERE?
Kettle,
If you get any notices that this guy is drowning in debt and is not paying his mtg my best advice would be to immediately stop paying your rent. Just tell him the lender called and told you to do it. He will love that excuse.
#118 Rich:The Federal Reserve says Americans’ percentage of equity in their homes has fallen below 50 percent for the first time since 1945.
Oh yes, just one more reason whay i should reun out today and buy a house,maybe 2 while I am at it.
Me thinks its going to be a very ugly, ugly, Springs elling season, for all those delusional wannabe sellers that are still out there.
#120 kettle: I just did a tax search.
How does one do that?
#132 Kettle.
I am not an expert on this and I suggest you investigate further as I am an idiot and don’t know what I’m talking about.
Taxes are first liens and will always get paid. If the landlord is looking to clean up their finances, by kicking you out and raising the rent You have a slightly stronger position when he owes you 18% interest on the note. If he refuses to pay you, after two years and a few hoops you can forclose on the property.
That is why the mortgage holders want to pay your taxes. In this case the bank bought up the lien to stop someone getting in the middle. If you buy it and the bank wants to foreclosure. The bank will have to talk to you to clear the lien. At that point you can negotiate to stay.
Confused In NJ:
How about have graded Tolls on all major Highways? Highest toll for one driving SUV and going by himself/herself. Lowest, driving Hybrid/Minivan with 7 passangers.
Solves Traffic congestion, Protects Environment and at the same time as reduces Oil consumption.
3b,
depends on the county, some counties have the data on the web, some do not. morris county does. look here
http://mcclerkweb.co.morris.nj.us/or_wb1/or_sch_1.asp
#142 Kettle: Thanks
“oh and he has a tax lien for unpdaid taxes….”
kettle,
How much is the tax lien?
Anyone??? Insight on the Ocean City market? Please see post #80. Thanks for any help you can provide.
Looked at the mortgage contract on the house and it is a mortgage for a primary residence and is being used as a rental ” to me”. IS there some way i can legally negotiate a rent “decrease” or other concessions given that i have knowledge of him committing financial fraud?
BC Bob
$40,
#142 kettle: it appears that bergen county does not have this data on the web.
“$40”
kettle [147],
Sounds like an accounting error?
BC,
I called the tax collectors office at lunch and verified that it is not an error. it is an unpaid water bill
3b
then you would need to go to the local town hall to look at the records, they are public information
to clarify, the landlord took out a mortgage for a primary residence 5 months before he rented it to me. The landlord has verified to me that they havent lived in the house ” in years” (during a casual chat). The loan documents require that the house be the borrowers primary residence for at least 1 year after loan inception.
#151 kettle:thanks
Kettle [150],
It still sounds like an error, 40?
BC,
maybe, i am not an expert, just going off of the data i have available.
the actual amount was 43.67
152 – Maybe used the house as collateral for a downpayment on another home? If he hasn’t lived there “for years” is sounds like he’s owned it “for years” – so why borrow 110% of the value last year?
would B of A take any action if i were to hypothetically call them and tell them that i knew of mortgage fraud? I dont plan to just curious.
126 kettle
“Bof A gave this guy 110% as of this past summer. does anybody wonder why the banks are in trouble”
did you catch my story yesterday of my buddy who owns a brownstone in NYC and his father holds the mortgage? How does a bank do something that stupid?
lisoosh,
they built the house int he 70’s and lived in it until about 92 – 94. paid off 2 different mortgages on the house and now have a loan for about 110% of the 07 value AND have a 25K line of credit, which i would bet BofA has locked down.
patient:
very stupid on the banks part, and who knows i mat be looking for a new rental in the near future. whether i like it or not
does anyone know where to find the ABX indices on the Bloomberg terminal?
That’s great news. Abandon Hope Now, Lifeline, Freeze frame, etc.. The crap actually sounds like some game show. Stop playing games. Start rasing rates, cut govt spending, blow out the dead wood and bury dead man walking. We can then all get out our flags and celebrate a born again dollar.
The problem is how do you save subprime fraudsters, resuscitate the banks and support the dollar? I know, lay down and take a couple Tylenol’s.
You and others here are entirely too negative. This is the greatest country in the world and there’s nothing we can’t surmount. You guys like to alternate between wringing your hands and shouting for joy at the prospect of someone else’s misfortune. Where’s your pride and faith at? Why is this great nation simply doomed? Why is there joy at the prospect of misery befalling someone?
Look, I tried to post something positive, but all you guys want to do is focus on the negative. Believe me, this real estate situation is just a blip on the screen. It’s nothing to be wringing your hands about.
140 PGC (and kettle)
“If you buy it and the bank wants to foreclosure. The bank will have to talk to you to clear the lien. ”
I’m not sure this works, because once you pay his taxes, isn’t it no longer a tax lien and simply a note from the landlord to you that is subordinated to the mortgage?
I wouldn’t do it without talking to a creditor’s rights/bankruptcy lawyer.
Kettle,
It is called mortgage fraud. Did you read up on the shenanigans of a Mr. Casey Serin from last 2006/2007? He bought around 8 properties all over the west coast, all with Liar loans where he said each would be his primary residence. Everyone and their mother has known this since he started a blog on how much of a moron he is. The authorities and the companies he swindled have so far not touched him. I think your LL is relatively safe.
reinvestor
“You guys like to alternate between wringing your hands and shouting for joy at the prospect of someone else’s misfortune.”
That’s not true at all. I am very sorry for your misfortune.
patient are you located in morris county?
nope – I’m in union
Could someone provide an address for MLS#: 2464241? Many Thanks.
#161 recrybaby:This is the greatest country in the world and there’s nothing we can’t surmount.
If there is nothing we cannot surmount, than stop asking for bailouts and hand outs, get you hand out of my pocket.
You and the rest of you fools who created this problem suck it up, deal with it.
And stop the pithy appeals to patriotism;its annoying.
“Believe me, this real estate situation is just a blip on the screen.”
50.5,
Blip or crashing blimp?
BC Think Hindenberg!
169
regarding 50.5
OH The Humanity!!!!
(obscure perhaps)
http://www.youtube.com/watch?v=xiAT9xvTVKI
kettle [171],
I’ll have to watch tonight. No youtube for me, daytime.
bc
go to this link and click on “watch video” under the second search result. it should bypass work filters
http://www.google.com/search?num=50&hl=en&client=firefox-a&rls=org.mozilla:en-US:official&hs=sLM&sa=X&oi=spell&resnum=0&ct=result&cd=1&q=hindenburg+audio&spell=1
#136 manhattanexile
Human Bean
http://tinyurl.com/359g3j
Some of the hottest girls that put hooters to shame there. Its a little drive through place.
I don’t know if everyone has the same experience but generally the first girl gives you the coffee and the second and third are climbing over each other with sugar and cream. I like to think I am special. Luckily I don’t have a jealous wife but she manages to lose that 5lbs she talks about shortly after getting a cup of coffee there.
Coffee is good too.
kettle [173],
HMMM. Maybe I can bust thru all the filters here?
#96 Clot as per NJ Anti-Eviction Act a tenant can only be evicted for cause if the property has more than 3 units and is not owner occupied. In any event the bank is required by NJ state law to honor your lease, even if it is less than 3 units and or owner occupied.
So #64 in NJ you are safe until your lease ends unless they have cause to evict, or a terms in the lease that permit lease termination. Also the bank could give 18 months notice and cease to have the property be a rental and I think if it is sold you can be evicted if and only if the property is fewer than 3 units.
vodka (157)-
No. There are millions of liar loans of this ilk out there.
The only thing BofA cares about is whether the borrower can get the loan current…or how fast they will have to foreclose.
Why is there joy at the prospect of misery befalling someone?
Look, I tried to post something positive, but all you guys want to do is focus on the negative.
I guess the definition of “something positive” depends on your point of view.
I do see falling home prices as something positive in the long run. Young people will have an opportunity for real homeownership without gambling with their financial futures or spending over half their incomes on a POS cape; praying a resetting ARM doesn’t sink them.
At the same time, I do understand that this will be a painful process for those who bought at the wrong time using a suicidal loan. I truly feel bad for the first time buyer who didn’t have the benefit of a blog like this, or a “voice of reason”, who listened to their realtor and others who told them “buy now of get priced out forever”. I don’t feel bad for the flippers who helped create this mess.
Clott,
i intend to dig up all the dirt on my LL later tonight, it should be interesting.
141.SG Says:
March 6th, 2008 at 1:35 pm
Confused In NJ:
How about have graded Tolls on all major Highways? Highest toll for one driving SUV and going by himself/herself. Lowest, driving Hybrid/Minivan with 7 passangers.
Solves Traffic congestion, Protects Environment and at the same time as reduces Oil consumption
Only if the Toll for gaz guzzlers is $5,000 per Toll. Would have to be to get their attention.
NJ Patient,
Would there be a possibility of civil action if you get kicked out of a rental house because your landlord lied on his loans and then got foreclosed on?
141 SG;
Also, all Police & Other Official Cars would be Volkswagon Super Beetles. Black & White for Police, Red for Fire, Yellow for Trenton.
#178 rent: Sorry, but use of a suicide loan does not elicit any sympathy from me.
The only people I feel sorry for, are those who played by the rules, lived within their means, and played by the rules, who may loose their jobs due to this housing credit led recession.
The rest can pog mo thon.
Mitchell Says:
“I don’t know if everyone has the same experience but generally the first girl gives you the coffee and the second and third are climbing over each other with sugar and cream. ”
NOW we know where all of North Carolinas ex Real Estate Agents and investors went to work.
#146 “negotiate concessions” Not a lawyer or a cop so I’m not sure if it would be extortion or blackmail. Might be fun, though.
jcer (176)-
Thanks for correcting me. I am no authority on landlord/tenant stuff. Very confusing to me.
soosh (184)-
Mitchell is just a little too into the T&A thing, don’t you think?