“With house prices falling, lenders are looking to control their risk.”

From the Wall Street Journal:

Lenders Curb New Mortgages In Weaker Areas
Move May Put Added Pressure On Prices in Hard-Hit States; Submarket Collateral Damage
By RUTH SIMON
October 23, 2007; Page D1

Some lenders are now making it tougher for borrowers in softening housing markets to get a mortgage.

The policy is designed to keep lenders from holding the bag if home prices in those markets continue to fall — and highly leveraged borrowers find themselves owing more than their home is worth. But the tighter standards, by discouraging home buyers, could add to downward pressure on home values in already weak markets.

Lenders such as J.P. Morgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. are cutting the maximum amount some borrowers can finance in counties or states where home prices are declining. Mortgage companies are also taking a tougher look at appraisals in housing markets with falling prices. Among the areas being hit by the tougher standards are parts of California, Florida and Michigan.

Lenders in the past have come under criticism for their failure to make loans in minority neighborhoods, a practice known as “redlining.” The latest round of tightening, by contrast, is broader, and aimed at markets where home prices are falling.

The sharper focus on soft housing markets comes after mortgage lenders have tightened their standards for all borrowers amid a slowing housing market, a widespread credit crunch and rising delinquencies. New national data from Equifax Inc. and Moody’s Economy.com show that the mortgage delinquency rate jumped to 3.3% in the third quarter from 2.3% a year earlier.

The impact of such restrictions could grow if these tighter standards become more widespread. It “could significantly impact the ability of even borrowers with good credit scores to buy a home if they don’t have a significant down payment,” says David Stevens, who runs the mortgage operation at Long & Foster Real Estate, based in Fairfax, Va. Last year, more than one-third of Long & Foster’s customers put less than 10% down, Mr. Stevens says.

With house prices falling, lenders are looking to control their risk, says Doug Duncan, chief economist of the Mortgage Bankers Association. But “there’s a little bit of a self-fulfilling prophecy,” he adds. “If you tighten standards, fewer people can qualify [for a mortgage]. Effective demand is going to be lower, resulting in lower house prices.”

Some of the lenders are reducing the maximum combined loan-to-value ratio, a measure of how much of a home’s value a borrower can finance using a mortgage and a home-equity loan. In August, J.P. Morgan Chase’s home-equity division cut the maximum amount borrowers in Nevada can finance to 85% of the home’s value. The unit won’t let borrowers finance more than 90% of their home’s value in seven other states — Arizona, California, Colorado, Florida, Michigan, New Jersey and New York. That compares to a maximum combined loan-to-value of 100% of a home’s value in Texas and Washington and 95% in other states. Chase made the move to reduce the chance that the loans it makes will wind up under water, a company spokesman says.

Wells Fargo, meanwhile, has expanded a program begun earlier this year that tightened standards in certain “declining” markets. Wells has reduced the maximum amount it will finance by 10 percentage points in markets the company has identified as “distressed.” The list includes more than 50 counties in seven states, including parts of California, Florida and Michigan. It also cut by five points maximum financing in more than 125 other counties in a total of 22 states and the District of Columbia. A spokesman says the company is monitoring credit conditions on a “day to day” basis.

In other cases, lenders are giving appraisals closer scrutiny. Bank of America Corp. says it is asking for more detailed appraisals in markets with falling prices. In many cases, appraisers are being told to drive by the property to get a better estimate of its value instead of just running information about the home through a computer model.

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144 Responses to “With house prices falling, lenders are looking to control their risk.”

  1. grim says:

    From Reuters:

    Countrywide Fincl to offer refinance options on subprime loans

    Countrywide Financial Corp, the largest U.S. mortgage lender, on Tuesday said it plans to offer refinancing options to subprime borrowers.

    The company said it will have an outbound calling program to to refinance or modify up to $16 billion of Countrywide loans for borrowers who are facing an adjustable-rate mortgage reset through the end of 2008.

  2. grim says:

    From Bloomberg:

    Bankers’ Ranks to Be Thinned By Bloodletting to Come: Joe Mysak

    Some day over the next few weeks, Wall Street executives are going to meet to make some bad decisions.

    They are going to decide to batten down the hatches, trim away the dead wood, button up for the battle ahead — use whatever tired cliche you want. They sure will.

    Some people at these meetings are going to be asked to “pursue other opportunities.” The people who report to them are simply going to be fired.

    Bank of America Corp., the second-largest U.S. bank, on Oct. 18 said that third-quarter profits had dropped 32 percent. Chief Executive Officer Kenneth Lewis observed somewhat whimsically: “I’ve had all the fun I can stand in investment banking.”

    That doesn’t sound good.

    As you probably have heard, the financial industry has had a pretty nice few years. This isn’t shaping up to be one of them. This is the year of subprime mortgages and structured investment vehicles and, at least for some firms, such as Bank of America, big losses on certain kinds of investments. Some firms have already made cutbacks, but so far, they have been pretty minor.

    What happens next is that the top brass meets and decides which businesses have been profitable and which businesses have not, and decide where they are going to spend their money. Then they cut jobs, and in some cases, entire departments.

  3. Kurt says:

    As seen on the front page of the USA Today left at the door of my Hampton Inn’s room this morning:

    Largest lender to redo $16B in loans

    Countrywide Financial plans to announce Tuesday that it will restructure or refinance $16 billion in adjustable-rate mortgages that have recently reset to higher rates or will reset by the end of next year, stretching some homeowners to the breaking point.
    Its plan comes as the mortgage industry tries to head off mounting political and public pressure and an alarming foreclosure rate.

    Countrywide, (CFC) the nation’s largest mortgage lender, says its program will help about 82,000 borrowers, mainly those with “subprime” credit.

    “Changes in the housing market have occurred, and the trends are weakening,” David Sambol, Countrywide’s president, said in an interview Monday. “Our leadership position in the marketplace requires us to do more.

    “Our desire to help our borrowers very much aligns with our interests: helping people stay in their homes and avoiding foreclosure losses for our company and our investors.”

    The plan would benefit Countrywide borrowers who:

    •Are in default on their loans because of an interest-rate reset in the past few months. Countrywide will send a letter offering to roll back their rate to the previous, lower level. Countrywide expects to modify 10,000 of these loans, totaling $2.2 billion, by the end of this year.

    •Are likely to have difficulty affording an upcoming rate increase and are unable to refinance. Countrywide will modify the loan to a rate that will keep borrowers in their homes. The lender says it expects to modify 20,000 loans totaling $4 billion through the end of next year.

    But those borrowers who fall behind because they’ve lost their jobs and lack enough income to keep up with a mortgage won’t qualify.

    •Had subprime credit but have been making payments on time. Countrywide will offer to refinance them into a lower-interest “prime” loan, or a mortgage insured by the Federal Housing Administration, Fannie Mae (FNM) or Freddie Mac. (FRE) The lender estimates that about 52,000 borrowers would qualify for a new loan, and it expects to refinance $10 billion in mortgages.

    These borrowers, however, will have to pay the fees to refinance their loans.

    Josh Fuhrman, director of counseling for the Homeownership Preservation Foundation, said, “There are a lot of new options and products coming out right now. … A lot of the other (loan) servicers are starting to be more flexible, but (Countrywide’s plan) is pretty specific and looks on the surface to be pretty solid.”

    The mortgage industry is under pressure from politicians, regulators and consumer advocates to speed up and boost the number of loan modifications for homeowners in trouble.

    Last week, Treasury Secretary Henry Paulson warned of an “immediate need” for more loan restructurings and modifications.

    http://www.usatoday.com/money/economy/housing/2007-10-23-countrywide_N.htm

  4. grim says:

    Existing home sales due out tomorrow and new home sales on Thursday. The remainder of the week certainly won’t suffer from a lack of excitement.

  5. grim says:

    From the NY Times:

    Bill Allowing Mortgage Lawsuits Expected to Stir Fierce Opposition

    House Democrats introduced legislation on Monday that would for the first time let homeowners sue Wall Street firms for relief from mortgages that the borrowers never had a realistic chance of repaying.

    The measure, which is expected to generate intense opposition from the financial services industry, addresses some of the problems tied to the transformation of the mortgage lending industry from an often local business into a trillion-dollar global market for investors in search of higher returns.

    The bill is part of a broader measure intended to restrict what lawmakers and consumer advocates consider deceptive and improper lending practices, many of which were common among the millions of soured subprime mortgages to people with low incomes or poor credit histories.

    Critics warn that the bill could chill and perhaps freeze a huge source of capital that has helped push homeownership in the United States to its highest level.

    The legislation, introduced by Representative Barney Frank, Democrat of Massachusetts and chairman of the House Financial Services Committee, would require any mortgage lender to verify that the borrower has a “reasonable ability to repay” based on documented income, credit history and debt level.

    “The people who package mortgages and sell them into the secondary market were a major cause of the single biggest world financial crisis since the Asian crisis” of 1997-8, Mr. Frank said, “and it’s unthinkable that we would leave that undisturbed.”

  6. njrebear says:

    How to build a bailout

    http://www.marketwatch.com/news/story/buffett-bailout-big-meeting/story.aspx?guid=%7B3E08BEC4%2D5764%2D4439%2D8EFA%2D05F477378C75%7D&dist=TNMostRead

    A conversation between Paulson, Federal Reserve Chairman Ben Bernanke, Ken Lewis of Bank of America Corp., G. Kennedy Thompson at Wachovia Corp., Citigroup Inc.’s Chuck Prince and J.P. Morgan Chase & Co.’s Jamie Dimon — even Lloyd Blankfein, chief executive of Goldman Sachs Group Inc.

  7. Bloodbath in Winter 2007 says:

    Just a guess – 07, 08 and 09 will show far better returns on stocks than real estate. $500 into the market a month – after you’re done saving your 20% for the house downpayment – will get you great returns.

    Can I squeeze in a mention of Apple? This is one of those times I wish I’d bought more shares. 200 by the end of the year seems reasonable.

  8. chicagofinance says:

    doh!

    WSJ
    Gulf Coast Clean Up
    October 22, 2007; Page A18
    With the possible exception of New Jersey, no state’s political institutions have been more corrupt than Louisiana’s. So it’s a hopeful portent that Congressman Bobby Jindal was elected in a landslide this weekend to become the next Governor of the Pelican State on a reform agenda.

    The national press corps seems to want to focus mainly on the 36-year-old’s relative youth, and on his ethnicity as the nation’s first Indian-American Governor and a Republican to boot. But as Mr. Jindal has noted many times, his story is a typical immigrant’s tale in this land of opportunity.

    [edit]

  9. ADA says:

    http://www.thejournalnews.com/apps/pbcs.dll/article?AID=/20071023/NEWS02/710230348

    House sales are up in Westchester, flat in Putnam

    Sales of single-family houses rose 5.5 percent in Westchester County in the third quarter year over year, while house sales in Putnam County were flat, the Westchester-Putnam Multiple Listing Service said.

    Median sales prices for houses rose in both counties. The median price – the level at which half the sales are higher and half are lower – rose 1.9 percent in Westchester, to $730,000. Putnam’s median was up 6.8 percent, to $432,500.

  10. gary says:

    “With the possible exception of New Jersey”

    New Jersey is always either first or last in statistics when it comes to being the “worse”.

  11. chicagofinance says:

    Bloodbath in Winter 2007 Says:
    October 23rd, 2007 at 8:23 am
    Just a guess – 07, 08 and 09 will show far better returns on stocks than real estate. $500 into the market a month – after you’re done saving your 20% for the house downpayment – will get you great returns.

    Can I squeeze in a mention of Apple? This is one of those times I wish I’d bought more shares. 200 by the end of the year seems reasonable.

    bb: your first paragraph sounds like bipolar…..your second paragraph? I mean…look AAPL is trading at high $180’s pre-market, but 6-7%+ in 10 weeks…..you make it sound as if it is nothing. Do you appreciate the growth built into the valuation? Any sniff of the fact that the consumer won’t be i-Phoning their progeny in record numbers may spell NO SOUP FOR YOU!
    http://www.youtube.com/watch?v=WZ3AOmZ2fps

  12. RentinginNJ says:

    But those borrowers who fall behind because they’ve lost their jobs and lack enough income to keep up with a mortgage won’t qualify.

    I wonder if those who went “stated income” with Countrywide will now be required to actually show their hand to qualify for this refi deal? If so, I’m guessing most in this category won’t qualify for a workout.

  13. grim says:

    Got to read between the lines, this is an attempt to get subprime loans off their balance sheet and sold to the GSEs. Mozillo and crew are not dummies, and they certainly aren’t doing this out of the goodness of their hearts.

    Of the $16 billion mentioned.

    $10b/$4b/$2.2b

    $10b – Loans to be refinanced into GSE/FHA eligible loans. These loans are currently in good standing. Only one reason to do this, so that they can be sold.

    $4b – Workouts for still current loans, but facing resets.

    $2.2b – Workouts for delinquent loans.

    Looks to me like very few dollars are going towards working out loans in trouble, owners facing foreclosure. The bulk of the money is aimed at current loans with strong credit history.

    Good way to drum up free media though…

  14. gary says:

    So, I can call my mortgage lender and tell them I want my rate dropped. correct? Otherwise this is discrimination, correct?

  15. bi says:

    11#, apparently there is no lack of smart money buying in the midst of credit crunch.
    the inventories are down for both counties. this is the same as i observed in central jersey.

    excerpt from the article:

    “Those with money are waiting for the bottom to fall further,” he said.

    Is he talking to the folks here?

  16. Richie says:

    GOOG

    Got some in my IRA at $523 a share. Wish I’d bought sooner, but I can’t complain with the return to date.

  17. RentinginNJ says:

    The unit won’t let borrowers finance more than 90% of their home’s value in seven other states — Arizona, California, Colorado, Florida, Michigan, New Jersey and New York

    Interesting. NJ is on J.P. Morgan’s “high risk” list.

    Any idea of who is on the Well’s Fargo s**t list? (50 counties in 7 states). Is it the same 7 states JP Morgan is concerned with?

  18. bi says:

    it is funny some folks in this blog chasing hot stocks and hot commodities while bashing the folks who bought home in 2005.

  19. Al says:

    HI all,

    I was lookig at REO at countrywide GO TO

    http://www.countrywide.com/purchase/f_reo.asp

    And Pick NJ as a state – it says there is 1895!!! properties available – is it for real???

    – I think it is a glitch –

    As few days ago there was only about 80 properties…

  20. RentinginNJ says:

    11#, apparently there is no lack of smart money buying in the midst of credit crunch.

    What makes you conclude this is “smart money” and not “catching a falling knife” money?

  21. x-underwriter says:

    Looks to me like very few dollars are going towards working out loans in trouble, owners facing foreclosure. The bulk of the money is aimed at current loans with strong credit history.

    Countrywide is sitting on a pile of Sub Prime loans that they can’t sell. They’re trying to see if there’s a way to convert any of them into better grade loans to get them off the books. It has nothing to do with their concern for the borrowers.

  22. njrebear says:

    Al,
    Good find. I’m not sure either.

    All of those REOs have addresses on them which look unique.

  23. ADA says:

    from CL:

    Mr. and Mrs. Seller said…
    HEY BUYERS!

    HAVE WE GOT A DEAL FOR YOU.

    IT’S A PRISTINE, ENORMOUS, COZY, STUNNING, ENCHANTING AND HYPNOTIC RAISED RANCH.

    LOCATED IN PRESTIGIOUS SWEET-TOWN P.O., WITH PRIVILEGED ACCESS TO THE HALLOWED CRAPPY-TOWN SCHOOL SYSTEM, THIS CASTLE-LIKE, VINYL SIDED ABODE WAS RENOVATED TOP TO BOTTOM IN 1987!!!

    GAZE OUT THE SPELLBINDING PLEXIGLASS GARAGE WINDOWS WHILST YOUR CHILDREN FROLIC ON THE SCENIC HIGHWAY IN FRONT OF THE HOUSE!

    ENJOY $50 PER DAY PROPERTY TAX PAYMENTS WITH GUARANTEED 8% YEAR-ON-YEAR APPRECIATION!

    BASK IN THE GLORY OF PAYING QUADRUPLE WHAT YOUR SLAUGHTERHOUSE-JANITOR NEIGHBOR PAID FOR HIS IDENTICAL HOUSE 7 YEARS AGO!!

    ALL FOR THE AMAZING LOW PRICE OF ONE BILLION DOLLARS!!!

    WON’T LAST!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  24. Al says:

    For example one of the REO’s:

    187 S BRIDGE ST ,
    SOMERVILLE , NJ 8876

    from htis web site:

    http://www.streamfx.com/CW/7-22-2007/REO-New-Jersey.html

    listed price is at 213K right now..

    It is either a glitch OR Countrywide finally decided to come out with REAL NUMBER of REO’s and defaullts they are faing as their carrying costs for those mortgages are too high and they need to get rid of non-performing loans even at a loss???

    I do not know.

    Any Ideas – but if it is true number – than Holy $hit!!!

  25. njrebear says:

    Al,
    More people are noticing it!

    http://countrywide-foreclosures.blogspot.com/

    Country Wide REOs off the chart!!!
    Total REOs = 195k!

  26. Anon E. Moose says:

    “In many cases, appraisers are being told to drive by the property to get a better estimate of its value instead of just running information about the home through a computer model.”

    Oh, my, stars and garters! Appraisers actually driving by and laying eyes on the property they are appraising? Can you imagine the uproar if the lender told the appraiser to actually look inside or walk through? I might swoon…

  27. Al says:

    Hmm what are the chances of countrywide going under if this is true numbers??? And what is going to happen – not legan system nor financial system in US are prepared for this numbers…..

  28. RentinginNJ says:

    it is funny some folks in this blog chasing hot stocks and hot commodities while bashing the folks who bought home in 2005.

    Why? Just because many here are bearish on a particular sector of the economy, we are supposed to live in a bunker in Montana waiting for Armageddon?

    Most people here are negative on housing because they took the time to understand the underlying fundamentals and didn’t just drink the Cool-aid the NAR was handing out. Most of the population, including the media, happily jumped on the “new paradigm” bandwagon. Despite being in the minority with an unpopular view, turns out we were right, they were wrong.

    I’m personally bullish on alternative energy, including nuclear and carbon reducing technologies.

  29. bergenbuyer says:

    I cruised through those CFC REO listings and they all look real to me.

  30. kettle1 says:

    Al

    if the 195K is an accurate number, then this is where the bottom falls out. This would be the point where we expect BOOOYAH BOB to show up :)

  31. chicagofinance says:

    bi Says:
    October 23rd, 2007 at 9:26 am
    it is funny some folks in this blog chasing hot stocks and hot commodities while bashing the folks who bought home in 2005.

    bipolar: don’t point out people’s hyprocrisy….it tends to piss them off……nice lucid moment for you

  32. chicagofinance says:

    kettle1 Says:
    October 23rd, 2007 at 10:11 am
    Al if the 195K is an accurate number, then this is where the bottom falls out. This would be the point where we expect BOOOYAH BOB to show up :)

    stoli-clone: Assuming Boooya has been candid with us over time, then the reason we have seen so little of him recently is that he is busy as hell working on all of his prior threats.

  33. kettle1 says:

    Chi-Fi

    I see you enjoy finding creative plays on my name… Glad i can offer some entertainment to the crowd :)

  34. BC Bob says:

    “it is funny some folks in this blog chasing hot stocks and hot commodities while bashing the folks who bought home in 2005.”

    Who’s chasing? Also, who is defining what is hot?

    The main difference, you need $ in your account before placing an order. Also, if you dip below maintenance, you either put more $ into your account or lose your position. I would love to find a house that will let me take on $1 mil of margin with a zero balance. Where does one find this deal?

  35. Al says:

    Tomorrow Healines “The New Donals Trump Emerges –Boooya!!!!

  36. lisoosh says:

    #26 – South Bridge St. is where all the dealers live. Someone gets shot there at least once a year.

    Grim – Any way to work in one of those programs that allows a return visitor to the comments section go back to the last post that was up when they left the site?

  37. bi says:

    36#, there is no scientific definition on which is hot. but we can at least consider these are hot: oil (up 500% in 5 years), chinese stocks (up 400% in 2.5 years). also there were some corn oil stuff which economically makes no sense. compare with this, RE was up about 70% in 7 years, which is not hot IMO

  38. BC Bob says:

    [39],

    Suppose one has been in some “hot” markets for years and subsequently has locked in those gains. At the same time, they have the opportunity to pull in additional profits if the markets continue their trend[up or down] How does this relate to the 2005 home buyer who put zero down?

  39. bergenbuyer says:

    Anyone found a reason why the CFC REO listings went up so much? From 13K to 195K. There has to be some explanation.

  40. lostinny says:

    I can’t believe how many REO’s are on Countrywide’s site. Now I’m wondering if signing another lease was a good idea. Of course, if these people bought at the height of the market, they overpaid and the bank will want more then I’m willing to spend.

  41. njrebear says:

    bb,
    Some talk of new count including properties owned by other banks but serviced by CFC. Not sure though…

  42. Al says:

    This is the last comment from this blog –

    http://countrywide-foreclosures.blogspot.com/

    bloggers unite…

    radman said…
    Countrywide’s official REO website clearly states that these are Countrywide OWNED properties. I follow both this site and the blog daily, paying particular attention to MS and CO. Yesterday 10/22/07 there were 115 REO’s in MS. Today there are 1414. Most now show “broker unassigned”. No S–t!!! Cumulative for all areas jumped overnightfrom 13,000+ to 195,000+. Something smells here. No wonder CFC is now eager to workout 80K loans. I suspect some employee either intentionally or accidentally dumped these astounding numbers on the Internet and disclosed the true magnitude of the “problem” What will be the fireworks when Wall Street notices this? Also very peculiar that no prices are listed now. This is going to be interesting.

    October 23, 2007 10:09 AM

    Personally i think it might have been something like this one sentence: Something smells here. No wonder CFC is now eager to workout 80K loans. I suspect some employee either intentionally or accidentally dumped these astounding numbers on the Internet and disclosed the true magnitude of the “problem”

    Or as I said in one of my earlier posts – Countrywide might be running out of money…

  43. kettle1 says:

    You could make some good money on this deal at CFC ( if you were in the know before this hit). short stocks and other various hedging methods then dump the real REO numbers on the web and sit back….

  44. SG says:

    bi: RE was up about 70% in 7 years, which is not hot IMO

    Considering most RE have at least 4x leverage, the RE returns for most are about 400% to 500%. E.g. If you bought 400K house in 2000, with DP of 80K, the house sold for 800K in 2005, the profit is 400K on 80K that is return of 500%.

  45. MJ says:

    I do see CFC lower today

  46. Al says:

    Also from that blog:

    go browns said…
    I believe the CFC’s corp. website includes ALL loans for which CFC services…i.e. REOs for multiple bank investors.

    The prior chart is only REOs held in CFC’s corporate portfolio.

    October 23, 2007 9:04 AM

    SO it is possible that they have changed their methodology and now counting “extra” listings – but – where did those lsitings came from – I did not see them on MLS or GMLS. Not on realtor.com either.

    SO in effect no matter who owns the mortgage – these are new REO’s????

    It is also possible that this are delinquent loans from september adn where put to REO by mistake.

    But anyways hopefully we will know soon. – As afr as lease concerned -I will abandon my lease IF i see a great deal – 5-6K remaining balance is not a big deal. Thats a huge advantage of renting!!!

  47. Al says:

    Just a piece of math: let’s say an entity owns 195K loans in default – that means they’d have to pay taxes…. Lets also say taxes are 1000$ -/house – not a hight number, right??

    Well thats wopping 195 millions right there… Just for taxes with no hope of recovering any of it back.

  48. pretorius says:

    Thanks for highlighting the leverage thing, SG.

    Real estate prices are tracked on unlevered basis, even though most people use lots of leverage. Meanwhile stocks are the equity position, so prices reflect impact of leverage.

  49. nwbergen says:

    Check this out in Miami condos 50% off after auction!

    http://www.youtube.com/watch?v=tkuW8bCjC6c

    Oh, I forgot, real estate is a local phenomena and this could NEVER happen here.

  50. pretorius says:

    Nwbergen,

    Check out results at Maxwell Place in Hoboken. Most of these places were bought in 2005. Dozens have been flipped in 2007. Prices are still going up there.

    Apt View Orig Pr Resale Pr Date Type Sq. Ft. $/SqFt
    217 West 373,990 510,000 8/27/07 STUDIO 701 728
    408 South 715,990 845,000 8/1/07 1BR-DEN 1281 660
    1011 NW 681,990 858,000 7/30/07 2BR 1342 639
    1002 East 963,990 1,540,000 7/24/07 2BR 1430 1077
    704 South 876,490 1,055,000 7/13/07 1BR-DEN 1495 706
    1111 NW 797,990 890,000 7/11/07 2BR 1342 663
    711 NW 665,990 850,000 7/3/07 2BR 1342 633
    1110 South 998,490 1,063,000 6/29/07 2BR 1317 807
    906 South 766,990 850,000 6/15/07 1BR-DEN 1298 655
    904 South 958,490 1,085,000 6/5/07 1BR-DEN 1495 726
    511 North 533,490 629,500 6/5/07 1BR 1062 593
    406 South 970,990 1,350,000 5/28/07 2BR-DEN 1865 724
    707 North 545,990 605,000 5/17/07 1BR 1062 570
    212 South 903,990 1,329,000 5/16/07 2BR-DEN 1920 692
    1103 North 1,067,990 1,249,999 5/11/07 2BR-DEN 1703 734
    305 North 535,990 732,000 4/24/07 1BR-DEN 1198 611
    710 South 766,490 925,000 4/23/07 2BR 1317 702
    211 North 487,990 605,000 4/17/07 1BR 1062 570
    609 North 588,990 669,000 4/11/07 1BR 894 748
    800 East 638,900 825,000 4/5/07 1BR 966 854
    505 North 575,990 752,500 4/4/07 1BR-DEN 1198 628
    209 North 508,990 704,000 3/29/07 1BR-DEN 1139 618
    210 South 664,990 850,000 3/26/07 1BR-DEN 1281 664
    315 NW 588,490 813,000 3/23/07 2BR 1331 611
    300 East 542,990 718,000 3/21/07 1BR 966 743
    312 South 908,990 1,395,000 3/9/07 2BR-DEN 1920 727
    317 West 396,990 499,000 3/1/07 STUDIO 701 712
    504 South 991,490 1,406,000 2/26/07 2BR-DEN 1950 721
    214 SW 674,490 870,000 2/2/07 2BR 1361 639

  51. RayC says:

    Foreclosures on the brain today. I just got a “follow up” call from Realty Trac offering half off a subscription. I never spoke to anyone.

    They did call and hang up 20 times after I canceled my free trial, but we never had a conversation.

  52. make money says:

    CountryWide REO’s are false and misleading.

    I looked at 23 Castleton avenue in Staten Island and it’s scheduled to be auctioned off on the 27th of this month at 10AM.

    You can see it for free at http://www.propertyshark.com

  53. make money says:

    Just a piece of math: let’s say an entity owns 195K loans in default – that means they’d have to pay taxes…. Lets also say taxes are 1000$ -/house – not a hight number, right??

    Well thats wopping 195 millions right there… Just for taxes with no hope of recovering any of it back.

    According to an insider i sopke to recently he said that on average the mortgage companies loose around 65K on a foreclosed home.

    195Kx65K=12.7Billion

    How Mozzillo is going to keep this company in business is behind me. I think he’s just trying to keep it afloat until he sells his own shares.

    or Ben bails him out with taxpayers money.

    bet the latter.

  54. rhymingrealtor says:

    Existing home sales due out tomorrow and new home sales on Thursday. The remainder of the week certainly won’t suffer from a lack of excitement

    Would you believe, their was a time
    when those words would slip by, like butter
    But now, (and you know it’ll rhyme)
    I’m really all a flutter (-:

    KL

  55. RayC says:

    #55 How so? It doesn’t seem any more misleading than a house that continues to be listed for sale after an offer has been accepted. In fact, since an auction may produce no buyers, I don’t see how it is misleading. Do you mean because Countrywide isn’t the only owner? I see Wells Fargo listed as well…

  56. BC Bob says:

    “or Ben bails him out with taxpayers money.”

    make,

    Exactly. Countryslide is too big/important to fail.

  57. make money says:

    #54

    That’s some good stuff

  58. dreamtheaterr says:

    CFC trying to save borrowers? Who is at work – Mozillo or Godzilla?

  59. skep-tic says:

    #11

    hard to argue with the Westchester sales numbers. the market for SFHs remains remarkably strong

  60. Al says:

    OK Countrywide REO’s are back to 82 for NJ – I think someone at Countrywide screwed up and linked wrong database (with, for examples all past REO’s)to the online web page.

  61. kettle1 says:

    Hey,
    at least the builders who do work in southern California have an improving outlook. With the huge fires ripping through towns, there should be quite a bit of building to be done :)

    California Fires:
    380 sq. miles
    300,000 displaced

    Harris Fire:
    70,000 acres
    5% contained
    Assaulting the fire from the air using all available craft (military included)
    Concerns:
    Spring Valley
    Dearhorn Valley

    Witch Fire
    164,000 acres
    1% contained
    500 homes destroyed
    250 damaged
    100 commercial destroyed
    75 other destroyed

    Rice Fire
    6,100 acres
    0% contained
    Concerns:
    Fallbrook
    Camp Pendleton

    La Jolla Fire (Poomacha Fire)
    1,000 acres
    Started as a structure fire
    multiple injuries
    Entire 76 corrido

  62. MJ says:

    are you sure they are all past REO’s? and not a list of properties in some stage of delinquency.

    I have that list saved.

  63. Al says:

    I do not know what they are – All I am posting is my speculations …

  64. kgl says:

    I see it in parts of North Jersey but things are selling. Try to move to the Jersey Shore Belmar, Wall, Point,
    Prices are still high and not falling much. Will the shore area see a high percent price decline. If you are on the sideline waiting for REO’s or price declines they may not come @ the beach

  65. Re: the WSJ article, does anyone know when they stopped requiring an appraiser to visit the actual house? And more importantly why?
    Rising market or not, what bank would allow this? (Yes, I know the answer but still…)

    I used to be a mortgage processor in the late 90’s. One of the few fun parts of the job was looking at the pictures of the various houses when the appraisals came in, and subsequently making fun of the owner’s tastes. The amount of wood paneling still in use circa `99 might surprise you.

  66. mr potter says:

    #68 hgl Price decline at the Shore ?

    2 Words for you Solomon Dwek

    Has about 300 properties to be auctioned off where he owes about $300M.

  67. bi says:

    i am not so excited about tomorrow’s existing home sale numbers. my expecctation is it will be the worst in last and next 100 years.

  68. bergenbuyer says:

    CFC now shows 82 NJ REO’s whereas it showed 1,895 earlier today. Something was up, whether it was an error, or it wasn’t supposed to be shown, these listings were definitely there and the addresses were real.

  69. make money says:

    Bush just asked for another 46 billion for the Iraq War. This has now cost over 400 billion of borrowed money.

    He will go down as the worst prsident of all time.

    Google Ron Paul. And you’ll see why the blogging communities around the country are excited about this guy.

  70. make money says:

    CFC now shows 82 NJ REO’s whereas it showed 1,895 earlier today. Something was up, whether it was an error, or it wasn’t supposed to be shown, these listings were definitely there and the addresses were real.

    CFC and the rest of the lenders are sitting on REO’s as they will kill the comps. and destoy housing. I’ve been watching forclosures in BK and Queens and for the last 3 months not one property that was foreclosued on at the auction ended up for sale as an REO.

    I assure you that there is a huge number of hidden REO’s.

  71. make money says:

    posted on CFC blog,
    Everyone,

    I saw this before i bailed from work this a.m. I picked 10 random homes from my listings in Florida i could go by on the way home.

    I checked 10 listings…

    EVERY SINGLE ONE IS A EMPTY HOME !!!

    The funny thing is all the lawns are mowed/trash picked up. You would not know these are empty unless you peeked in the windows…

    I am going to guess we probably were not supposed to see that info…

  72. Al says:

    I think we are over-reacting to this morning Countrywide data… There are just too many possibilities – historical file with All REO’s ever owned by Countrywide in one – or with all non-perforing loans by countrywide.

    In addition – idea about different stages of Default is a possibility – for example one missed payment (ever).

    So lets not jump to a conclusion here.

    As of now – it was a computer “Glitch” – propbably someone screwed up at countrywide as they are cutting their costs and getting rid of IT people :).

  73. gary says:

    I don’t know why anyone’s getting excited anyway. 10 Foreclosures or a million, it doesn’t matter here. A decent home in a decent neighborhood in the NYC metro area is probably at the low point now. The prices backed down already so if you have the money to buy and qualify for a loan you can afford, why wait? I keep telling you all, there is competition for nice homes priced correctly. Friends of ours have been going through it and everytime we see something that catches our eye, it seems like someone else already made a bid.

  74. AntiTrump says:

    #20 stupidbi:

    I don’t recommend chasing hot stocks and commodities, but if you are a smart day trader you can make money trading these and hedging appropriately.

    Try getting out an overpriced home in declining market and you will understand why trading stocks, commodities and housing is not the same thing.

  75. kettle1 says:

    MJ

    You said that you saved the list…
    Would you mind sharing it???

  76. kettle1 says:

    Hey guys, i found the way to solve NJ’s political problems. As per the NJ state constitution

    “No idiot or insane person shall enjoy the right of suffrage.”

    If we actually enforce this, most of our problems are already solved….

    NJ voters to decide fate of ‘Idiot’ language in Constitution
    http://tinyurl.com/2nv9np

  77. MJ says:

    sure.. although I dont know how.. I can just post it here as text but it would be a long one..besides, dont know if JB will allow that

  78. kgl says:

    #70
    Solomon Dwek

    Has about 300 properties : How do you find out which ones and how to bid. I read that they were being sold in large lots that contained numerous properties in each one. The grouping was done to move the large number of properties. I have not heard about individual auctions of homes.

  79. bergenbuyer says:

    #77 Gary – A decent home in a decent neighborhood in the NYC metro area is probably at the low point now.

    I disagree, I’ve been looking for almost two years now after selling my house. I now rent. We are definitely not at the low point. Are houses still selling? Yes. But only a few and there is still more inventory than buyers. If you want to sell today, you need to price below your comps and hope you went low enough. I still see plenty of houses come on the market with this thinking but they don’t go low enough and sit.

    Even the ones that do price lower continue to have to go lower and lower. Once a house sells the other drop a little, now the new lowest price needs to drop further. You need to be ahead of the market until we hit a point where houses start selling, we’re not at the bottom. Plain and simple supply and demand.

  80. mr potter says:

    #83 kgl

    http://www.keenconsultants.com

    Apparently, they are handling the sale of some or all.

  81. mr potter says:

    Dwek

    At the time of his arrest, things did not look so bad as his debts were kind of in line with the market. This was mid 2006. Now in 2007/2008 when these properties will liquidate, I am sure he and the banks will take a collective $30M-$75M haircut. aka, the mother of all comp killers

  82. bergenbuyer says:

    off topic, but I was speaking with my realtor about new construction and what it costs. He believes there’s a low point for some towns for land value alone, so Town A might be $200K, but town B is $750K. So even if I think prices will come down furhter if a house is currently listed at $800K in town B, don’t expect it to go any further, because anything further and a builder will buy it for land value alone even if the house is totally fine. We agreed to disagree that there has been a minimum set.

    One thing that did come up though was the cost to a builder, he said that if you bought the land for $750 a builder can build a 5-6k sq ft house for $500K and then sell it for $2M, making $750K. At the same time he sadi there are so many builders spec houses that aren’t selling. What used to be priced at $2.2M is now at $1.7M and still sitting. Basically offering them anything greater than their cost is doing them a huge favor if they’re cash strapped (which most guys are) and you could get one of these houses for $1.3M that your neighbor paid $2.2M for in 2006.

    Now we’re not there yet and builders aren’t that desperate, but it did give me some hope as I was worried that this downturn would take longer in northeast NJ because there isn’t that many new developments and builders are more willing to cut costs than single family home owners.

    How do you think those individuals are going to feel when their 4 bed center hall colonial that was built in 1970 that’s updated, but still only 4K sq ft is asking $1.2M and now a brand new 6k sq ft house is selling for $1.3M?

    We have upward pressure from the lack of first time buyers, plus downward pressure from cash strapped spec house builders forcing tony towns in Bergen to have across the board price reductions.

    I originally thought 2003 prices plus inflation was going to be the bottom, I think we’re almost there, now I’m thinking 2000 plus inflation is more appropriate.

    It’s gonna be a wild ride down, save your pennies.

  83. mr potter says:

    88, bergen

    85-100 per sq foot to build seems pretty low. If that is the case and they have made this much profit in the last 6-7 years, I bet the little builders are OK.

  84. hughesrep says:

    That keenconsultants.com website has an aoutmatic password generator if you give them your e-mail addy and a fake phone number. Kind of fun in a voyeuristic way to see what Dwek had to sell. It takes some hunting to find, but they have it on an excel sheet on the site.

    http://www.keenconsultants.com/casedocs/Case_164/DWEK%20MASTER%20PROPERTY%20LIST%20for%20Prospects%20-%209-11-07.xls

  85. mr potter says:

    Existing Home Sales due out tomorrow

    Will be interesting. Here is some data from the NAR.

    2006 Sales were 6.48M
    2007 Sales forecast – 5.78M
    2008 Sales forecast – 6.12M

    Will be so ugly tomorrow that even the NAR will revise its bloated forecast. If you think about what they are stating. To get to 6.12M in 2008, they are predicting an early 2008 recovery.

    Just keepin it real

  86. Heart breaker comp breaker says:

    stubborn sellers better get ahead of the curve before they find themselves chasing prices to the bottom. Sort of see the panic setting in. Only those that have to sell really get the message.
    One realtor told me there was some looking but absolutley not interest or bids were expressed.
    It’s the price dummies. Every thing sells for a price. Lower them fast if you want to sell a property.

  87. MJ says:

    I dont want to keep mailing if this is just junk. I will post for one town and let people research if this is useful or not..
    WEST ORANGE 12 PITNEY ST ,
    WEST ORANGE , NJ 7052 SFR NO BROKER ASSIGNED

    WEST ORANGE 151 GREGORY AVENUE ,
    WEST ORANGE , NJ 7052 SFR AMERICAN REALTY SERVICES 973-258-0888

    WEST ORANGE 16 SCHINDLER TERRACE ,
    WEST ORANGE , NJ 7052 Condo NJ REO ASSET MANAGEMENT AND REALTY 973-429-0990

    WEST ORANGE 18 SHEPARD TER ,
    WEST ORANGE , NJ 7052 NO BROKER ASSIGNED

    WEST ORANGE 20 HARVARD TER ,
    WEST ORANGE , NJ 7052 SFR AMERICAN REALTY SERVICES 973-258-0888

    WEST ORANGE 21 SUBURBAN DR ,
    WEST ORANGE , NJ 7052 SFR NJ REO ASSET MANAGEMENT AND REALTY 973-429-0990

    WEST ORANGE 25 FUNDUS ROAD ,
    WEST ORANGE , NJ 7052 SFR AMERICAN REALTY SERVICES 973-258-0888

    WEST ORANGE 50 LESSING RD ,
    WEST ORANGE , NJ 7052 SFR NJ REO ASSET MANAGEMENT AND REALTY 973-429-0990

    WEST ORANGE 65 FOREST HILL ROAD ,
    WEST ORANGE , NJ 7052 SFR NO BROKER ASSIGNED

    WEST ORANGE 7 OAK TER ,
    WEST ORANGE , NJ 7052 SFR NO BROKER ASSIGNED

  88. bi says:

    the listing seems valid but i don’t think folks here are interested in these historically troubled houses in troubled area.(maybe you can list a few from a “desirable” town). example:

    WEST ORANGE 25 FUNDUS ROAD ,

    7/13/2005 Guillaume James M & Marie S $420,000
    1/13/2005 Winkler Darlene $340,000
    3/1/2004 Bankers Trust Of California Na $235,000
    11/13/2003 Sheriff Of Essex County $238,227
    9/13/2000 Ge Capital Mortgage Services I $170,20

  89. Zhang Fei says:

    This is off-topic, but does anyone know if mortgage lenders can go after borrowers to the bitter end – i.e. every penny is collected? Wasn’t the Bankruptcy Reform Act designed to facilitate the ability of lenders to get all of their money back? The question then is whether deposit-taking mortgage lenders (i.e. banks) will have time to collect on their loans, assuming the Fed doesn’t shut them down first. The mortgage REITs died because they needed short term financing from institutional investors. Banks that financed their mortgage portfolios mostly via deposits shouldn’t have this problem. Thoughts, anyone?

  90. Pat says:

    bergenbuyer

    A cheap bottle of Australian merlot says its 1999 no inflation.

    Shake?

  91. Pat says:

    oops its=it’s (for the chicagofinance anal- retentive gene in all of us).

  92. grim says:

    From Bloomberg:

    Centex Reports Net Loss as Housing Slump Persists

    Centex Corp., the fourth-largest U.S. homebuilder, reported a fiscal second quarter loss after writing down the value of property as the housing recession intensified.

    The net loss in the three months ended Sept. 30 was $643.8 million, or $5.26 a share, compared with net income of $137.4 million, or $1.11, a year earlier, Dallas-based Centex said today in a statement. Revenue fell 21 percent to $2.2 billion. The company recorded $983 million in land writedowns and charges and said its cancellation rate was 35 percent.

    “Market conditions were extremely challenging during the quarter, reflecting the serious disruptions in the credit and mortgage markets that occurred during that period,” Centex Chief Executive Officer Tim Eller said in the statement. “In response, we meaningfully reduced prices in order to improve affordability for our home buyers.”

    September home sales are forecast to fall to a seven-year low as lenders tighten credit standards and defaults doubled last month from a year ago. Homebuilders are cutting prices to clear inventory and to contend with a more than eight month supply of unsold homes, the most in at least six years.

  93. Pat says:

    For my Ph.D. I think I’ll do a study of the heart rate of blog readers before and after reading typographical errors on a southern travel blog versus a NE US blog and I’ll toss in the mean time spent editing posts as graphed against original thought over a two-period on a real estate bubble blog.

  94. mikeinwaiting says:

    Any info on rmls#2448381,thanks in advance.

  95. skep-tic says:

    #84

    bergenbuyer– I would like to agree with this assessment, but how do you explain continued strength in comparable suburban markets like Westchester, NY?

    Sale volume in Westchester is on track to match or slightly exceed 2006; median prices continue to reach new highs, at least on a nominal basis and inventory is now dropping year over year, if only slightly.

    Inventory is higher and sales volume is lower than the peak years, but compared to anything other than 2003-2005, the market seems remarkably healthy.

  96. Richard says:

    >>stubborn sellers better get ahead of the curve before they find themselves chasing prices to the bottom

    save your tired rhetoric no one is going to sell you a house for .40 on the dollar.

  97. Pat says:

    .35?

    Do I hear .30?

    Sold for .25 on the dollar.

  98. mr potter says:

    #104

    .40 is probably not realistic but .60 to .70 is.

  99. Pat says:

    Potter, you want to spend $650,000 for a house that sold in 2005 for 1M, but in 1999 for $325 and absolutely nobody (excluding a few soon-to-be laid-off people in NYC) is making more money than they were at the height of the tech boom?

    I wish I could get a show of hands from all people working in North Jersey, over the age of 35.

    How many of you are making twice what you made in 1999? I know I’m not.

  100. BC Bob says:

    “save your tired rhetoric no one is going to sell you a house for .40 on the dollar.”

    I can buy one right now at .75 on the dollar. However, that’s not significant. A better gauge, last year the same owner wanted 1.20 on the dollar.

  101. chicagofinance says:

    Pat Says:
    October 23rd, 2007 at 5:00 pm
    oops its=it’s (for the chicagofinance anal- retentive gene in all of us).

    doh!

  102. Pat says:

    somebody’s gotta be the whipping boy.

  103. grim says:

    Any info on rmls#2448381,thanks in advance.

    327 Route 565, Wantage

    MLS# 2358430
    Listed: 01/02/07
    OLP: $284,550
    LP: $259,800
    DOM: 111
    Expired

    MLS# 2399811
    Listed: 04/24/07
    OLP: $229,900
    LP: $213,900
    DOM: 157
    Withdrawn

    MLS# 2448381
    Listed: 09/28/07
    OLP: $213,900
    DOM: 25
    Active

    Purchased 6/2002 for $151,000. Doesn’t look like any improvements were made.

  104. njpatient says:

    #20 bi
    Hold on…
    Wait for it…

    I agree with bi

    [Runs away]

  105. skep-tic says:

    hard to say where the point of comparison should be. it may be just as likely that RE was undervalued in 1999 as it was fairly valued.

  106. mikeinwaiting says:

    Thanks for info on Wantage home Grim.Is there a site you can give me for such info.I hate to bother people.Post rarely read every day,hoping for re to return to affordable level.In line with income of most people, med income in my area 70,000 does any one know how to back into # of what med house price should be?

  107. pretorius says:

    Great point skep-tic.

    One reason prices went up a lot after 1999 is prices had been flat for 10 years, despite very strong economic growth during the 2nd half of the 90s.

  108. chicagofinance says:

    This segment could provide much utility for future use on this blog…..
    http://www.youtube.com/watch?v=ihd4G9XxJOc

  109. Pat says:

    People are making money hand over fist.

    Everybody has toys. Everybody has the next hot thing. Heck, I’m even thinking of trading my ’94 Ford in. It’s 1998. Life is wild and crazy.

    Pret, you’re saying that houses are undervalued in 99? Why?

  110. pretorius says:

    Because the late 1990s was one of the greatest economic expansions in US history.

    Our local economy was on fire. Pharmaceutical and telecommunications companies (like Merck and AT&T) were hiring like idiots. New York financial firms were hiring so fast they had to build buildings in NJ to accomodate all the people. Incomes were rising and net worths were surging.

    But NJ home prices, which should grow faster than inflation when the local economy is expanding and new home supply is under control, barely moved during this time.

  111. pretorius says:

    I spelled accommodate wrong.

  112. dreamtheaterr says:

    Any hackers in here? How about hacking Zillow and marking all of Brigadoon down to sixdy cents on da dolla? Reechad weel ged da margeen call from da broker in da hood.

    There go my atrocious spellings….

  113. grim says:

    Thanks for info on Wantage home Grim.Is there a site you can give me for such info.I hate to bother people.

    Sorry, but no. You would need access to the MLS system the property is listed on to get the details I posted.

    Being an agent does have some perks.

  114. Pat says:

    “But NJ home prices, which should grow faster than inflation when the local economy is expanding and new home supply is under control, barely moved during this time.”

    Hmmm.

    Interest Rates? Fine.
    Employment? Fine.
    Salaries? Fine.
    Down Payment Requirements? Fine.
    National Debt? Fine.

    Why in heaven’s name would housing prices be too low?

    I would think that ’99 stats would be the gold standard of housing valuation.

  115. grim says:

    Because the late 1990s was one of the greatest economic expansions in US history.

    Pre, many have argued that the period between 1982 and 1989 was also one of the greatest economic expansions the U.S., and the world, has seen.

    Unfortunately, that didn’t stop real estate prices from declining in the period that followed. Will it help now?

  116. bi says:

    119#, in just short 20 years, the economy landscape has changed significantly. now it is much more global: euro money is flowing to u.s. market; china was isolated after the government crashed down demorcratic movement in 89 but now trading everything with u.s. – even most american flags in store are made by communist china.

  117. Clotpoll says:

    pret (114)-

    Exactly right. I couldn’t price houses high enough in 1999. I actually had sellers telling me there was no way they could get the prices I was suggesting. I’d just ask them to give me 1-2 weeks at my price, then we’d drop down. I never had to. I’d do 1-2 houses in a neighborhood, sell ’em at record prices, send out flyers, then get 3-4 more neighbors to let me price theirs even higher. Most 98-99 sellers around here left scads of money on the table, because they underpriced their homes and didn’t have adequate enough marketing (or enough cojones to let a market for their homes develop) to get the message out. The first buyer in would offer full price, and the deal would be done.

    However, the reverse of all the above also holds true. Sellers REALLY have a hard time swallowing that!

  118. Clotpoll says:

    Pat (118)-

    Housing prices were too low, because there was no inventory…and about a million buyers.

  119. bi says:

    114#, you are absolutely right. after that, the real estate market was fuled by tax law change which allows no capital gain up to $500K for primary residency.

    real estate market is always local. now we agree it seems have trouble in some part of the country and fed is going to ease credit further to see if the housing problem will not hurt over all economy. therefore, i doubt the market here will fall off the cliff in our area.

  120. grim says:

    Two years ago the bulls argued furiously, providing reason after reason to support their position that estate prices would continue to rise.

    A year ago their argument shifted to defensive position, the main focus was rationalizing the position that real estate prices would stay stagnant at worst, but would not fall.

    Which leads to today, where the bulls seem to have conceded that prices can fall. But the nature of the argument has completely changed. It’s not that prices will go up, or that they’ll stay flat, it is centered on the magnitude of the declines..

  121. grim says:

    Interesting chart of realtor.com web traffic posted at Economic Disconnect

    Could realtor.com traffic be a leading indicator of existing home sales?

    http://alexa.com/data/details/traffic_details?url=realtor.com

  122. Frank says:

    Monmouth county sheriff sales has picked up in pace recently.

    http://www.visitmonmouth.com/sheriff/sale/index.asp

  123. Frank says:

    Check out the new rounds of layoffs…

    http://www.dealbreaker.com/layoffs/

    heeeeeeeee, heeeeeeeeeeeeee, heeeeeeeeeeee

  124. Frank says:

    JB,
    Love the new blog format.

  125. grim says:

    I’ll leave the new format up for a while to get some comments..

    I’ll start it off:

    The header image looks terrible..

  126. Joeycasz says:

    I’m using a widescreen monitor and the entire right side is completely empty. Is it possible to center everything like it was or is that in the works?

  127. bi says:

    Frank, Whachovia layoff in Charlotte? i was thinking about that $250K desk support job 2 weeks ago. -:)

    By the way, best wishes to the people being let go

  128. still_looking says:

    :( I don’t really like it… or maybe I just liked the original format better.

    Sorry… [ducking and running]

  129. still_looking says:

    and apologies to njpatient…. that part got cut off :)

    sl

  130. Pat says:

    Ack.

    Who dropped the stuff in my drink?

    Oh. New format.

    Clot, no inventory? Lotsa buyers? Prices should have been through the roof. You’re backing me up here. I’m looking for a left hook.

  131. Joeycasz says:

    I like knowing the number of each post and i recommend a more cream, tan, light brown, stainless steel, granite counter top background :)

  132. Pat says:

    Format comment:

    It’s a miracle..I can see. Praise!

    http://www.youtube.com/watch?v=hwWzbD_9Nfo

  133. Sean says:

    white? I feel like I am heading into the light! That glorious light of real estate heaven, no wait the guy at the end of the tunnel has a pitch fork! Change it back please!

  134. grim says:

    Ok, enough playing for now..

  135. Pat says:

    That was fun.

  136. Fiddy Cents on the Dollar says:

    That was a shocking change, mid-screen Grim!

    I kinda like the old format better, but it’s just something new to get used to. I’m sure in a few weeks after the change takes over, none of us will be able to describe what this this format looked like.

  137. hoodafa says:

    The new format is aesthetically more pleasing, but the posts, from where I sit at least, are not numbered…so if someone refers to, lets say #27, I can’t tell which post that is. Am I making sense?

  138. Clotpoll says:

    pat (134)-

    Prices were rising then, just not rising enough to reflect the outrageous imbalance between buyers/sellers (tons of buyers, no sellers). Another case of lots of agents looking to make the quick sale rather than helping their listing clients max out their returns. Lots of pricing to comp, rather than pricing to trend (come to think of it, there’s a lot of that going on now, too).

    The killer was seeing people sell their homes…then trying to trade up, only to realize they hadn’t gotten enough from their sale to score the next home.

    Certainly, by the beginning of 2002, the horse race was on, and the speculative upward spiral was fully-engaged.

  139. Clotpoll says:

    The confirmation- to me- that prices weren’t escalating fast enough in ’99 was that appraisers were having no problem with the homes that did manage to sell at record prices. Most NJ appraisers at that time were already making time/value adjustments in 30-day increments (many as high as 2% per 30 days).

  140. Pat says:

    Clotpoll, thanks. I was out there in 99, watching, and saw what you’re describing. I’m sure permits in 98/99 would back it up.

    So maybe saying that housing values were “ideal” at a certain point in time isn’t exactly what I’m trying to get across. Of course the market is reflective of all those conditions (rates, employment, etc.)

Comments are closed.