From Reuters via CNBC:
Mortgage Delinquencies Rise Alongside Unemployment
High U.S. unemployment keeps pushing up the rate of mortgage delinquencies, which could in turn drive personal bankruptcies and home foreclosures, monthly data from the Equifax credit bureau showed on Monday.
Among U.S. homeowners with mortgages, a record 7.58 percent were at least 30 days late on payments in August, up from 7.32 percent in July, according to the data obtained exclusively by Reuters.
August marked the fourth consecutive monthly increase in delinquencies, and the report showed an accelerating pace. By comparison, 4.89 percent of mortgages were 30 days past due in August 2008, while in August 2007, the rate was 3.44 percent, Equifax data showed.
The rate of subprime mortgage delinquencies now tops 41 percent, up from about 39 percent in each of the prior five months.
The results, which correlate with consumer bankruptcy filings, suggest U.S. homeowners remain under financial stress despite signs of improving sentiment and fundamentals in the U.S. housing market.
August bankruptcy filings were up 32 percent from a year earlier, compared with a 35 percent year-over-year increase in July.
What recession? Right Frank?!
So any ways…I’m reeeeeeeeeeech I tell you…..reeeeeeeeeeech!!!
From New Jersey Newsroom:
Unemployed New Jerseyans could get 13 more weeks of benefits
It might not be the good news they are looking for, but thousands of New Jerseyans stand to benefit as the House of Representatives moves to extend unemployment benefits.
The House is expected this week to take up and pass a bill sponsored by Rep. Jim McDermott (D-Wash.) to provide 13 more weeks of benefits to workers in states where unemployment rates are 8.5 percent or higher.
That includes much of the nation, which averages 9.7 percent unemployment. New Jersey matched that mark in August, its highest figure in 33 years. Neighboring New York and Pennsylvania also qualify, according to The Associated Press.
The additional aid may be critical for many households, since more than 300,000 workers are projected to exhaust their current benefits by the end of September. National unemployment has grown by 6.9 million since December 2007, according to the Bureau of Labor Statistics.
Should put a damper on arguments about the exhaustion rate for, well, 13 more weeks.
Option ARM resets:
http://link.businessinsider.com/view/80g.1af/7077bc9c
Yippee, another unemployment extension. If we could get decent croissants, it would be just like living in Cannes.
13 more weeks of unemployment, trying to save Christmas perhaps?
#5 – Crisis didn’t come? Not sure I buy it. Just look at the headline piece for details about the fallout. A subprime delinquency rate of 41%? Sounds pretty bad to me.
#8 Grim – Alt-A according to the Fed data in NJ is about 40% late paying in NJ and 7.5% are over 90 days delinquent.
http://www.newyorkfed.org/mortgagemaps/
But if by Armageddon, folks were expecting zombies vs. Mad Max, I agree, it didn’t happen.
Yes, but meanwhile we patiently await the burning of Wall Street and the angry mobs with pitchforks….
Although Bernanke vs. Krugman in Thunderdome would have been good. Two men enter, one man leaves.
God damned Paul Krugman song stuck in my head again:
http://www.youtube.com/watch?v=XOYAuk809fY
awesome tune grim
From Bloomberg:
Fed Rejects Geithner Request for Study of Governance, Structure
The Federal Reserve Board has rejected a request by U.S. Treasury Secretary Timothy Geithner for a public review of the central bank’s structure and governance, three people familiar with the matter said.
The Obama administration proposed on June 17 a financial- regulatory overhaul including a “comprehensive review” of the Fed’s “ability to accomplish its existing and proposed functions” and the role of its regional banks. The Fed was to lead the study and enlist the Treasury and “a wide range of external experts.”
Some top central bank officials, after agreeing to the review, saw a potential threat to Fed independence after the Treasury released the proposal, two of the people said. The Obama plan said the Treasury would consider recommendations from the review and “propose any changes to the Fed’s governance and structure.”
The House proposal of 13 more weeks would move NJ Unemployment from 79 weeks to 92 weeks. If they made it permanent, they could rename it Welfare. I know several people who refuse to look for work until all benefits are exhausted.
But.. But.. 104 is so close, would be a shame to go through all the dirty rigmarole of legislation and have to come back to the table in 3 months.
One day closer to oblivion.
“High U.S. unemployment keeps pushing up the rate of mortgage delinquencies, which could in turn drive personal bankruptcies and home foreclosures, monthly data from the Equifax credit bureau showed on Monday.”
Many foreclosures are actually strategic foreclosures by people who could afford to pay, but chose not to.
Why pay when suckers (aka tax-payers) can take care of your payments?
12: “Although Bernanke vs. Krugman in Thunderdome would have been good. Two men enter, one man leaves.”
I would prefer the version in which two men enter, no one leaves.
19
“Why pay when suckers (aka tax-payers) can take care of your payments?”
plus 2 years of free living w/ no mortgage payments
Krugman vs Bernanke? They are butt buddies and Krugman consistently kisses Bernanke’s butt. Krugman must not have been hugged as a child. He’s willing to send the entire middle class down the drain for popularity.
Geithner vs. Paulson?
Krugman is a tool. He’s also been co-opted by the gubmint.
I’d like to see John Paulson impale Geithner with a meat skewer.
Crossroads 21
that is actually a great reason to buy! Better then most sales pitches I Have heard
Jamil (20)-
“Why pay when suckers (aka tax-payers) can take care of your payments?” -Jamil
Bad advice to give out to the many people who read here. How many newspaper articles have been posted here about a poor fellow who was told by a friend (or more likely someone online) to stop making payments? But the bank forecloses on the poor sap instead of adjusting his or her mortgage. Oops. The only sucker there is the one who followed your “sage” advice.
Gerry
I believe that with current rules and the aid of an attorney you can push the foreclosure process to almost 2 years
#8-I think they meant nuclear wasteland. Yeah, that didn’t happen. It would require 95% subprime/Alt-A/Option ARM delinquency.
vodka (28)-
You don’t even need an attorney. Right now, lenders have to wait at least six months in most NJ counties just to file the lis pendens. Getting the judgment and getting onto the sheriff sale docket takes another 12-18 months.
Here’s a sick thing we may begin seeing in big numbers:
The first people to take the short sale option around 2 years ago are now in a position to begin rebuilding credit. It may be possible- via FHA, with a maverick lender- to mortgage these people.
How many two=time losers are we about to create?
I say this because my very first short sale client called me today about getting a loan and buying a house.
You don’t even want to know what I said to this guy.
Natch, he’ll probably take his business elsewhere and jump off that cliff again.
Gotta jet. GG’s on.
27 Gerry:
Even State Media is acknowledging the problem:
“Homeowners who ‘strategically default’ on loans a growing problem”
http://www.latimes.com/classified/realestate/news/la-fi-harney20-2009sep20,0,2560658.story
Never been late on my top three loans — thank Gawd. But lately I have been FAWKING some CC Companies just for giggles and cause if you don’t pay for a few months, they realize you DO NOT GIVE A SH*T and lower your rate to 6%. They figure it is either that or a write-off. OK, so I confess….Moral Hazzard. But F’em and I got Everything I need. I actually don’t want any more credit.
And I HATE Bankers. All of em. Haaaaaaaaaaaaate em. My mom’s side of the fambly has em. For some reason, they are some of the smugest assh*les on the planet. Yeah they are loaded. But so am I relatively speaking. Bimmer Foreva.
But not “of course” loaded like Nom. I mean if I had Nom’s money, I’d throw mine away.
John,
In the last thread, you said:
I am thinking more like weeds when the brother-in-law was dating the rabbi.
Huh?
What does that mean?
OK maybe my uncle is OK. We’ll see one day. I would like to see him leave something to his sister. No Lie.
I missed my calling as a marketer….how’s this?
RE/MAX of New Jersey
Outstanding Agents
Outstanding Results
Liberate Tuteme Ex-Inferis
Scribe,
John from Bayonne was referring to the Showtime series Weeds. Gator and I love this show. It is the ONLY series on television which I watch with regularity. Keep in mind, the only other three series I ever thought were worth watching were MASH, Cheers and 3-feet under. Everything else truly sucks and is written for the enjoyment of the average Fox News viewer.
Hi guys,
Long time lurker and I know we have some math whizzes here:
I need help with a kids math problem, thought I’d post it here…
The four interior angles of a quadrilateral measure x-5, 3(x+8), 3x+6, and 5x-1. Find the measures of the four angles.
thanks in advance,
CH,
I assume homework needs to be completed tonight so I’ll bite.
x-5 + 3(x+8) + 3x + 6 + 5x + 1 = 360
x-5 + 3X + 24 + 3X + 6 = 360
12x + 24 = 360
12x = 336
x = 28
a1= 28-5
a2= 3(28)+24
a3= 3(28)+6
a4= 5(28)-1
a1=23
a2=108
a3=90
a4=139
a1+a2+a3+a4 = 360
but, it’s been a while so I may be completely wrong.
Thanks alot zieba,
Now lets see if I can understand it well enough to explain :)
Stu, #41
Ah-ha!
I don’t have cable, so don’t know the show.
But doesn’t “weeds” refer to pot?
Zieba, you are right
CH914
Just remember that sum of all angles = 360, after thar it’s a simple linear equation. What grade is your kid at?
Couple typos though. Don’t understand how did you get correct result :)
x-5 + 3(x+8) + 3x + 6 + 5x – 1 = 360
x-5 + 3X + 24 + 3X – 5 = 360