Mortgage delinquencies still rising

From Reuters:

Fannie mortgage holdings sink, delinquencies leap

Fannie Mae’s gross mortgage portfolio shrank sharply in November while the delinquency rate on single-family loans it guarantees leaped in October, the government-controlled U.S. home funding company said on Monday.

The company said its mortgage investments fell at a 26.1 percent annual rate last month to $752.2 billion. Year-to-date, the portfolio has declined by an annual 4.9 percent from $787.3 billion at the end of last December.

Fannie Mae also reported an ongoing jump in the rate of late payments on single-family loans it guarantees, a problem that has eaten into its capital and forced borrowing from the U.S. Treasury.

In October, the most recent figures available, the conventional single-family serious delinquency rate rose 26 basis points to 4.98 percent. A year earlier, the rate was 1.89 percent.

The multifamily serious delinquency rate dipped 1 basis point to 0.61 percent but remained starkly higher than the 0.21 percent rate in in October 2008.

Loans that are three months or more past due or in the foreclosure process for single-family homes and those that are 60 days or more past due for multifamily homes are considered serious delinquencies.

From the WSJ:

Delinquencies Rise Further In Fannie Mae’s Portfolio In Oct

Fannie Mae (FNM) said delinquencies in its mortgage portfolio continue to rise as the mortgage financier reported its portfolio size shrunk.

Fannie said October serious delinquencies, or those at least 90 days behind, rose to 4.98% on single-family homes from 4.72% in September and 1.89% a year earlier. Fannie’s delinquencies have been higher than Freddie’s.

This entry was posted in Housing Bubble, National Real Estate, Risky Lending. Bookmark the permalink.

288 Responses to Mortgage delinquencies still rising

  1. grim says:

    From the Philly Inquirer:

    Buyers credit helped local real estate market

    Four months’ worth of sales numbers show how important the first-time-buyer tax credit was to the Philadelphia region’s real estate market.

    In November alone, as Congress debated extending and expanding the $8,000 credit, set to expire at month’s end, existing-home sales in the eight counties were 75 percent higher than in November 2008 – 5,076 vs. 2,894 – according to Prudential Fox & Roach HomExpert, using data from Trend Multiple Listing Service.

    That was even better than the 4,445 sold in November 2007, which was a couple of months into the region’s housing downturn, data show.

    Congress has extended the $8,000 credit to April 30 (closings up to June 30). It expanded the program to offer a $6,500 credit to buyers purchasing another home who have lived in their current homes for at least five years.

    Income limits have been raised for first-time buyers from $75,000 for single purchasers to $125,000, and from $125,000 to $225,000 for couples. Credits are available on a diminishing basis above those limits.

    With most experts predicting a slow road to economic recovery, is there any chance Congress will extend the credit again?

    “I think this is it for the home-buyers credit,” said Joel L. Naroff, president of Naroff Economic Advisers in Holland, Bucks County.

    “If there is another program, it will likely be for other big-ticket items such as appliances,” he said. Such a program is “cheaper and may start broadening the consumption recovery.”

    Naroff does not believe that the housing market needs more of this kind of help.

    “It may not be strong,” he said, “but it looks like it can stand on its own feet in most parts of the country, including the Philadelphia region.”

  2. grim says:

    From the Record:

    Builder to auction Emerson condos

    Reacting to a slow housing market, a builder plans to auction five condos — minimum bid of $150,000 — in an Emerson building where units have sold for up to $399,000.

    The auction, to be held Jan. 10 at the Clinton Inn in Tenafly, is another sign that builders are increasingly turning to auctions to move their inventory.

    The two-bedroom, 1,190-square-foot condos being auctioned are the last five in the 36-unit, age-restricted building called the Stoneridge.

    Paul Van Dyke, managing partner of the company that built the Stoneridge, said he expects to take a loss at the auction but felt the sales process needed “a good kick.”

    The auction is believed to be only the second condo auction in Bergen County during the current housing cycle. In early November, 26 new condos in East Rutherford were auctioned for roughly $260,000 to $310,000, well below their original asking price of $489,000. In addition, several luxury houses in Franklin Lakes have been auctioned over the past year.

  3. grim says:

    From the WSJ:

    Higher-End Homes Face Price Pressure

    Though the cheapest houses on the market may not get much cheaper, more-expensive homes still have further to fall, which will likely slow the broader housing recovery.

    The Standard & Poor’s/Case-Shiller home-price indexes for October are due on Tuesday morning. Economists estimate the index tracking prices in 20 major cities was down 7.7% from a year ago.

    That would mark the smallest year-over-year decline since November 2007, but would also leave prices slightly lower than in September, ending a four-month string of month-to-month improvements. That might cause some anxiety about the housing recovery.

    Despite recent signs of a bottom, many observers expect home prices to fall an additional 10% before the bust ends.

    A pipeline clogged with future foreclosures is the most-cited reason for such forecasts. Another has to do with the shifting mix of home sales.

    So far this year, between a third and half of all sales in any given month have been foreclosures and other “distressed” properties, which have mostly hit lower-priced homes, typically the most available to subprime borrowers. Distressed properties have kept home prices falling, even as the government tax credit has boosted sales.

    That shift suggests price declines will prove more pronounced in middle and higher-end housing brackets, which haven’t yet fallen as far as the broader market. In San Francisco, high-end prices are down just 25% from their peak, compared with 39% for the broader regional market, according to Case-Shiller data.

  4. Cindy says:

    http://online.wsj.com/article/SB126205338369508429.html?mod=WSJ_hpp_sections_news

    A few articles @ the WSJ on High-end properties..

    “A picky Home Buyer Pursues An Epic Hunt for “the One”

    2 1/2 year search…

    “The other “Higher-End Homes Face Price Pressure”

    And Frist I think!

  5. Cindy says:

    Grim @3 – I see you found the “Higher-End” homes article…

    The “picky buyer” article sort of bears that out as well. As she searched, she watched the prices drop and drop…

  6. grim says:

    From CNBC:

    US Home Prices Likely Fell in October vs. Year Ago

    The latest reading on home prices is expected to show a decline from year-ago levels, but since June government programs to boost home sales have helped prices improve on a monthly basis.

    The figures for October, which will be released Tuesday, should reflect the rush of homebuyers trying to complete their purchases before the original expiration of a federal tax credit. The Nov. 30 deadline was extended last month to April 30.

    “The (tax) credit likely held the floor on prices for a time,” said Zach Pandl, an economist at Nomura Global Economics.

    Economists predict the Standard & Poor’s/Case-Shiller home price index of 20 major cities fell 7.2 percent compared to October last year, according to Thomson Reuters.

    The annual declines have been shrinking since the spring, so if the October reading falls far short of expectations it could “reopen the debate on whether prices have reached bottom or not,” Pandl said.

  7. grim says:

    Thanks Cindy! I didn’t notice those. The morning post is usually a coffee-fueled scramble..

  8. grim says:

    From the WSJ:

    A Picky Home Buyer Pursues An Epic Hunt for ‘the One’

    Bay Area real estate has always demanded patience on the part of buyers. Many spend months scouring listings in hopes of finding “the one.”

    Then there is Lidia Pringle. The 58-year-old former reporter for United Press International became something of a legend in local real-estate circles for conducting one of the longest and most tenacious house hunts that brokers here can recall.

    “I’ve always given 110% to whatever it is I do,” says Ms. Pringle. “If I’m looking for a dream house, of course I’m going to follow the same methodology.”

    The National Association of Realtors says the average buyer visits 10 to 12 homes before buying. Over two-and-a-half years, Ms. Pringle personally inspected 298 homes in Marin County.

    Collecting flyers along the way, she amassed enough data to fill a two-by-three-foot box. She looked at so many homes that real-estate brokers would sometimes ask for her opinion on new listings they hadn’t yet seen themselves.

    It was the downturn that finally got Ms. Pringle what she wanted. A salmon-colored Tuscan-style home in Tiburon was originally priced at $9 million. Eventually, the owners cut the price by $2 million. After a series of offers and counteroffers, the Pringles closed on the home in September for $5.9 million.

  9. Nomad says:

    Can anyone tell me why the home mtg modification program did not simply convert mtg of troubled borrowers into some type of longer term fixed rate loan? Seems to me that this would have been easier and less expensive for the gov’t. For some of the home owners, their homes would have been greater in value in 5 years than today which would reduce or eliminate any losses they would have when selling.

  10. Cindy says:

    http://www.sacbee.com/capitolandcalifornia/story/2425236.html

    National R/E – Risky Lending…

    New law to go into effect here in CA Jan. 1 –

    “Legislation targets predatory, confusing marketing of reverse mortgages”

  11. grim says:

    Can anyone tell me why the home mtg modification program did not simply convert mtg of troubled borrowers into some type of longer term fixed rate loan?

    They did, but in many cases simply going fixed rate and drawing out the loan didn’t reduce payments enough to make them affordable.

    For late borrowers, remember that unpaid principal and interest were tacked onto the loan as well. In some cases, payments actually went up, but they went up less than any other alternative loan or reset/recast.

    In a small number of cases, not only were low interest rate provided, but principal was forgiven as well. In this case, debtors got to have their cake, and eat it too.

    The last case were folks given a mod, but they didn’t take it because they couldn’t come up with documentation (eg, liars). These were the folks that likely used liar loans to buy, and simply didn’t have the income to support even the recast. HAMP isn’t “stated income”. A smaller percentage is those who found themselves out of work. No income, no mod. A catch-22 if there ever was, those who need the mod the most won’t ever get it. You ever hear that saying about bankers and umbrellas?

    What it really boils down to is many of these folks simply can’t afford the homes, and “tweaking” some of these parameters really won’t help. Short of giving them the house for free, they can’t pay.

  12. cooper says:

    Good Morning
    re#1
    funny how there’s no mention of how many tax credit claims were fraudulent… i have no source but read that the number is somewhere around %50

  13. cooper says:

    #12-sources
    Articles on home buyer tax credit fraud…

    About 19,350 taxpayers claimed $139 million worth of tax credits for homes they had not yet purchased, and about 70,000 taxpayers claimed more than $479 million in credits despite evidence they were not first-time home buyers, according to a report by the Treasury Inspector General for Tax Administration, the agency that monitors the Internal Revenue Service.

    http://www.marketwatch.com/story/fraud-found-in-home-buyer-tax-credit-claims-2009-10-22

    Another

    The IRS is reportedly probing more than 100,000 suspicious claims for the credit, including 167 possible criminal schemes, according to The Wall Street Journal. Some of the false claims may have been inadvertent. A report last week by the Treasury Inspector General for Tax Administration found that as of May 29, over 70,000 First-Time Homebuyer Credits totaling over $489 million had been claimed by individuals who did not appear to qualify for the credit (see First-Time Homebuyer Credit Challenged IRS).

    http://www.webcpa.com/news/Homebuyer-Tax-Credit-Claims-Fraud-Probe-52090-1.html

  14. Cindy says:

    http://www.marketwatch.com/story/fannie-freddie-to-be-used-to-prop-up-housing-more-2009-12-28

    Grim @11 – Looks like they have other plans too.

    U.S May Prop up Housing further via Fannie, Freddie

    “The Government may put a mortgage-modification effort called the Home Affordable Modification Program, or HAMP into overdrive in coming years, pushing for reductions in the principal outstanding on home loans overseen by Fannie and Freddie.”

  15. Dissident HEHEHE says:

    Find your Jersey Shore nickname:

    http://www.unlikelywords.com/2009/12/08/jersey-shore-nickname-generator/

    From now on I will only refer to John the Belmar Bond Trader as “The Spread”.

  16. Cindy says:

    He He – I put in “female” “Cindy” and my Jersey Shore nickname is “Snickers.”

    What was yours?

  17. Dissident HEHEHE says:

    Juice Springsteen

  18. cooper says:

    14 Cindy the best line was ….The U.S. Treasury Department said on Christmas Eve that it lifted $200 billion caps on the amount of taxpayer money that can be pumped into the ailing mortgage giants over the next three years.

    “Neither institution is near its $200 billion limit — Treasury has put $60 billion into Fannie and $51 billion into Freddie since it seized the failing companies in September 2008. ”

    Grim is there a bet on if Fannie and Freddie will go over their “NEW LIMIT”?
    if so,
    I’m all in taking the over.

  19. cooper says:

    18 Cindy
    LMAO that’s hysterical

    “Grim Male – “The Operation” “

  20. Cindy says:

    Cooper more @ 13

    “This means Fannie and Freddie won’t have to cut their portfolios in 2010 and will only modestly reduce them in 2011, the analyst said.

    Fannie and Freddie were also due to pay a commitment fee to the Treasury, starting the first quarter of 2010. Treasury postponed that for a year, which should give the companies’ earnings and capital a boost, according to George.”

  21. Cindy says:

    http://www.reuters.com/article/idUSTRE5BS11P20091229

    Employers See Uptick in Hiring in 2010

    They also add: “Many employers – 37 percent – said they plan to take advantage of the large labor pool and replace low-performing employees in 2010.”

  22. crossroads says:

    Cindy

    this is a comment from Mish on the GSE’s

    “Interestingly, the legislation that created Fannie and Freddie explicitly states that its securities are not backed by the government. Supposedly, the GSE’s were to receive no direct government funding or backing.”

    He goes on to say Bush and Obama administrations iognored this

  23. grim says:

    10y yield at a 6 month high this morning.

  24. Alap says:

    4% is right around the corner. When’s last time we hit 4?

  25. Stu says:

    Wells Rates:
    IR APR
    30-Year Fixed 5.250% 5.444%
    30-Year Fixed FHA 5.500% 6.245%

  26. 3b says:

    #15 cindy I now wish to be kniwn as 3-Tan

  27. Stu says:

    Greetings from:

    The Sausage Party

  28. scribe says:

    cindy, grim

    The “picky buyer” story from the WSJ – what strikes me:

    It was the downturn that finally got Ms. Pringle what she wanted. A salmon-colored Tuscan-style home in Tiburon was originally priced at $9 million. Eventually, the owners cut the price by $2 million. After a series of offers and counteroffers, the Pringles closed on the home in September for $5.9 million.

    Ms. Pringle found her dream home through a broker who took her to only one house. Ms. Emrich, the broker who had spent so many months working with her, wasn’t part of the deal. “I have so many wonderful things in my life,” says Ms. Emrich. “That is not one of them.”

    ….that the broker who put up with her for months didn’t get a dime …

  29. Stu says:

    “….that the broker who put up with her for months didn’t get a dime …”

    And just think of all of the other hardball buyers this press will generate for Ms. Emrich.

  30. Schumpeter says:

    grim (11)-

    Short of writing down principal, these loan mods all have one unifying feature: they don’t work.

    The ship is sinking; oblivion beckons.

    Just lie back, relax, and don’t fight it.

    No more tax credit for buyers? Doesn’t matter. The buyers- at today’s price levels- are done buying. At the next level down, the buyers are all vultures and pirates.

  31. 3b says:

    #25 Stu: 6% around the corner. 7% by Spring/Summer

  32. 3b says:

    #30 schumpt: Aye Aye Matey!!

  33. John says:

    Don Draper’s $45K per year salary in 1963 is equivalent to around $315K in today’s dollars.

    BTW we are experiencing the
    “wealth effect” again if stocks keep rising. When people get their 401k statements for YE they are going to be happy and want to start spending. Damm it who cares about rates, I got RSEs, Incentive Comp, 401K matchs and my portfolio is up 68% where is my monster SUV and McMansion?

  34. Schumpeter says:

    cooper (18)-

    Proof that yes, you can pick up the pieces of a detonated bomb, glue them back together, fill it with toxic, crap mortgages and set it off again.

  35. All Hype says:

    You all can call me H-Train!

  36. scribe says:

    stu,

    I’m wondering what the husband does to support this princess.

    UPS reporters make squat.

  37. All Hype says:

    Clot (30):

    I like being called a pirate.

    Now where is my stash of booty?

  38. Stu says:

    Scribe,

    Considering the anal tendencies of his wife, I’m guessing the hubby is rarely home.

  39. scribe says:

    Jersey Shore nickname

    Scribe female = The Princess of Paramus

    I like it!

  40. scribe says:

    Stu,

    Maybe he told her to “go shopping” figuring it would be good for a year or two? :)

  41. Stu says:

    The Princess of Paramus:

    Nice!

  42. grim says:

    Don’t make me post the dirty jersey video again…

  43. Schumpeter says:

    My candidate for the first crash of 2010:

    “Traders are storing enough crude at sea to supply the 27- nation European Union for more than three days. Royal Dutch Shell Plc, Europe’s biggest oil company; London-based BP Plc; JPMorgan Chase & Co.; and Morgan Stanley were among those that sought vessels for storage.

    The storage trade is profitable so long as the spread between energy contracts exceeds ship rental, insurance and financing costs. A year ago, the spread between the first and sixth Brent crude-oil contracts traded on the London-based ICE Futures Europe exchange was 23 percent. Now, it’s 4 percent.”

    http://globaleconomicanalysis.blogspot.com/2009/12/26-mile-long-glut-of-idle-oil-tankers.html

  44. Schumpeter says:

    confused (44)-

    Benefits are for losers. Keeping your job is the ultimate- and only- benefit.

    Get back to work, losers. You’ve got to subsidize Eraserhead’s underwater mortgage.

  45. lisoosh says:

    scribe – Oh man, I got Princess of Paramus too. Time for an all-out hair pulling brawl on the boardwalk.

    Sausage Stu (Stu the Sausage?) can watch.:-)

    Using just my first name I came up with:

    The Back End!

  46. lisoosh says:

    lisoosh and female got me:

    The Tight End.

  47. John says:

    Hey even the unemployed have scruples, the Jets are having trouble finding people to sell their worthless PSLs.

    Inside Sales Representatives
    Looking to get your foot in the door in the sports industry? Have a passion for sales? Here is your chance! Be part of the sales force to sell out the New Jets Stadium, the ultimate sports and entertainment venue in the media capital of the world.

    The New York Jets are hiring part time Inside Sales Representatives, who are enthusiastic, hardworking and motivated to sell multiple seating options to sell out the stadium for the opening kickoff.

    Positions are project based and will last approximately 6 – 9 months. You must be able to work at least 30 hours per week. We offer a competitive compensation package, including monthly stipend, aggressive commission plan, and unique Jets bonuses. Top performers may have the opportunity to earn a permanent, full time position with the team.

    Skills, Education and Experience:
    – Strong interpersonal skills, including excellent phone manners
    – Commitment to work in sports
    – Strong attention to detail
    – Superior organizational skills
    – Sales experience not required but helpful

    Please email your cover letter and resume with subject line “Inside Sales Representatives” to salesjob@newyorkjets.com.

  48. Schumpeter says:

    John (50)-

    It might be easier selling giant piles of poo.

    At least poo has a variety of uses.

  49. "Bones" Deplume says:

    If it were at the Jersey Shore, the Nompound would be called the Boneyard!

  50. lisoosh says:

    Sense of impending doom and urge to be anywhere else but here is back.

  51. "Bones" Deplume says:

    [49] tight end

    I’d go with that. Better to be a tight end than, well, oh …

  52. HEHEHE says:

    His name is “The Spread”.

  53. danzud aka D-Train says:

    Schumpeter is “The Condition”

  54. danzud aka D-Train says:

    Holy Sh*t!!!! Clot is also “The Condition”!!!!

  55. Stu says:

    Sure. You guys get all the cool names like “The Condition, The Spread,” and I end up with “The Sausage Party.”

  56. "Bones" Deplume says:

    BTW, I also used Nom Deplume and came up with “The Condition.”

    Great. In the blogosphere, I am a fcuking rash.

    I’ll stick with Bones

  57. "Bones" Deplume says:

    Sausage party,

    I’d go with that. It reminds me of an old Frank Zappa song. . . .

    And besides, now John isn’t the only pron star here.

  58. homeboken says:

    I got “Juice Springsteen”

    Very nice

  59. "Bones" Deplume says:

    [47] clot

    I am nearing the end of Sorkin’s book. One finds that they have more sympathy or respect for some of the players, and less for others.

    I felt that Dimon was smart, prescient, and tried to do the right thing. I felt the same about Willumstad (who I met and worked for as outside counsel while he was at Citi) who took on an impossible job (and got jobbed for it).

    Eraserhead comes out looking very small. He struck me as petty, unengaged, uninformed, imperious, and generally ineffective.

  60. Mikeinwaiting says:

    I received the “The Bicep” I can live with that.

  61. Mikeinwaiting says:

    stu that sausage thing ain’t as bad as it seems in Jersey parlance. Do well at DJ’s with that one.

  62. "the impact" safeashouses says:

    #63 Yo Bones

    Eraserhead comes out looking very small. He struck me as petty, unengaged, uninformed, imperious, and generally ineffective.

    I didn’t haf two read no book two knows dat.

  63. BC Bob says:

    “The company said its mortgage investments fell at a 26.1 percent annual rate last month to $752.2 billion. Year-to-date, the portfolio has declined by an annual 4.9 percent from $787.3 billion at the end of last December.”

    No problem, just dollar cost average.

    The fed can’t manipulate,[sustainable] long term rates. Since they have been printing we have gone down to 2%, 10 year, to close to 4%. Recent long term treas buyers are getting pummeled. Happy to be in bed with the dogs of fed? Stay a bit longer and you’ll be flea infested.

    The RE market experienced s/t stabilization thru stimulus, tax credits and fed treas/agency purchases. Yet, the pipeline grows, foreclosures increase and now rates creep higher. The govt can not alter this cycle. They can only make it worse, prolonging the agony.

    As the bond vigilantes wake up; back into the pits, watch out. The 2nd leg of this downturn is revving its engines. It will be a total blowout.

    Got real demand?

  64. lisoosh the tight end says:

    tight end it is.

  65. lisoosh the tight end says:

    Tight end is a football term??

  66. BC Bob says:

    TG is what he has always been, a lap dog, full of strings. Don’t need a book to come to this conclusion.

  67. HEHEHE says:

    I was the original Juice Springsteen.

  68. lisoosh the tight end says:

    Tried again.

    Got a choice of Hot Spot, L-Cat, L-Pow or Tan-tric.

    L-Cat would be obvious, so going with Tan-tric.

  69. lisoosh aka Tan-tric says:

    Google Isaac Asimov, World Fair of 2014. Impossible to link to, an essay he wrote at the time of the Worlds Fair of 1964/5 in New York.

    Interesting predictions, some pretty accurate.

  70. scribe, The Princess of Paramus says:

    lisoosh,

    The Tight End should set off a John story any moment now …

  71. scribe, The Princess of Paramus says:

    grim,

    #43

    There’s a dirty jersey video?

    Why was I not informed?

    re-post, please

  72. HEHEHE says:

    “The Spread” knows that when he takes off his shirt in D’jais there’ll be all sorts of “high yield” bond-ing with the ladies.

  73. yikes says:

    3 questions:

    1) Will the index hit 85 at any point in 2010? (Currently at 66; spent all year in 40s, 50s)

    2) anyone know of a good shotgun range?

    3) back to the SUV business from yesterday … looking to spend under 10k on something used and good in the snow but also family-friend.

  74. BC Bob says:

    Must be missing something? What are you all talking about?

  75. lisoosh aka Tan-tric says:

    BC -upthread, Jersey Shore nickname generator. Hehehe posted the link.

  76. Fiddy Cents on the Dollar says:

    I’d like to present a scenario and get feedback from the financial heads on the board….

    I will be selling my NJ Real Estate within the next 2 years. We plan to move to South Carolina, where my wife has family. We know the area quite well having vacationed there several times over the years. I would be semi-retired, with a low taxable income.

    The neighborhoods we like, and the homes that fit our reqts, are all between $275K – $300K.

    Options —

    1- Pay Cash for a home, use the “no mortgage contigency” to negotiate best price. Live with no Mortgage Payment. RE Taxes are nominal.

    2- Pay Cash for a home, and after settling in, get a loan for say, 40% LTV. Is the Interest Deduction really worth all that much compared to the cost of the loan ??

    3- Mortgage the purchase price, 15 years with 20% down (no PMI). Keep the proceeds from NJ sale and make the monthly payments.

    I don’t really see a benefit to the Interest deduction in the case where my taxable income would be so low.

    What are your thoughts….

  77. BC Bob says:

    lisoosh [79],

    Thanks. Thought everybody was in Clot’s office drinking Knob Creek.

  78. danzud aka D-Train says:

    Will you be deducting on a Schedule A or just doing a plain 1040 without the house? A lot of people get burned on that one thinking they’re getting the full deduction when in fact they sometimes need a good chunk of the taxes and interest to get over the standard deduction hump.

  79. Cindy says:

    80 – Fiddy Cents

    I’m working my but off to be mortgage free. Then I can retire. I’d be all over option #1. Just me though. No real head for money. Just my idea of real retirement.

  80. Cindy says:

    BC @ 78

    I tried BC Bob for you and got “The Blowout.” Grim was “The Operation.”

  81. John says:

    RE 80. Remember, even for the so called well off you only get 40% back of the interest you pay on a mortgage. Sounds like you will be around 20% tax bracket. So a 100k 6% mortgage will equal 6k in deductable interest expense of which you will get back $1,200 in your taxes. Either way you can deduct the RE taxes as you are not in AMT. Also watch out if you are near water as to have a mortgage means you have to have expensive flood insurance. Plus with a mortgage you need to have bank collect your RE taxes and Insurance ahead of time and you lose use of funds. Plus there may be a good chance you end up taking standard deduction in which you don’t get to deduct any of your mortgage expense.

  82. Mikeinwaiting says:

    BC 82 sounds liHe a plan.
    No hij * lmn using H again!
    Some times it worHs some times…

  83. Fiddy Cents on the Dollar says:

    D-Train —
    Once you get on Schedule A, you can really get creative. That would be the goal in that scenario.

    Cindy —
    I am currently mortgage-free and I can say without equivocation….I likes it !!

  84. relo says:

    80: Also depends on what you would do with the funds vs. paying cash for the house, i.e. what your risk profile is and associated returns would be.

    Of course, it’s all going to hell and this question is academic anyway.

  85. Shore Guy says:

    How can delinquencies be up? Prices have risen for five months in a row. It sounds like the “housing terrorists” are spreading their misinformation again.

    A house ar any price is a good deal, after all. Especially in NJ, with its proximity to NY.

  86. Cindy says:

    89 – Fiddy Congratulations. My first mortgage with a balance of $62,100 is my last remaining debt. I paid off my second as a Christmas present to myself.

    I admire you….

    What a great position to be in…

  87. SG says:

    Bad news for housing: Prices flattening

    “The turnaround in home prices seen in the spring and summer has faded,” said David Blitzer, chairman of the Index Committee at Standard & Poor’s, in a statement. “Coming after a series of solid gains, these data are likely to spark worries that home prices are about to take a second dip,” he said.

    “We’ve seen recent stability because of low interest rates and the impact of the first-time homebuyers tax credit,” said Pat Newport, a real estate analyst with IHS Global Insight.

  88. Fiddy Cents on the Dollar says:

    Cindy-

    Now there’s a Christmas present that keeps on giving…..good for you.

    relo–
    Funds would probably not be invested in anything risky like Bolivian Oil Futures. And I don’t really think this whole thing is going to hell. The picture will be a lot clearer in 2 years.

  89. SG says:

    D.C. housing market’s collapse lessens developers’ swagger

    For 10 years, Jeff Neal co-owned Monument Realty, which built offices and condos across the area and was among the developers with grand plans for the still-largely barren area surrounding the Washington Nationals’ new ballpark. As the market faltered, Neal left Monument, taking over a failing real estate brokerage that he closed this year.

    Now, Neal says, he’s writing a book about politics and developing a reality TV show, the details of which he declined to discuss, except to say that he’s not the star. He also plays a lot of golf.

    Schumpeter: We need reality show !!!

  90. Shore Guy says:

    Re the mortgage deduction:

    If one lacks the assets to buy a home outright and must take out a mortgage, the deduction helps reduce the pain of borrowing.

    If on has the assets but takes out a mortgage just for the tax break, one is paying a dollar (for no good reason) just to get 20 to 40 cents back; so one ends up throwing away 60-80 cents on the dollar, money that could be saved or invested.

    On a primary residence, being mortgage free is a good thing. If one wants to mortgage tp the hilt on a vacation home or investment property, have at it.

  91. "the impact" safeashouses says:

    Why Americans Can’t Add

    http://redtape.msnbc.com/2009/12/when-i-published-gotcha-capitalism-two-years-ago-i-was-in-for-a-big-surprise-as-i-talked-about-systemic-hidden-fee-fraud-al.html

    Personally I blame the schools. We must raise taxes to encourage higher quality teachers. since most people can’t do math, we’ll just tell the property owners they can afford the monthly payments, no worries. /off sarcasm

  92. lisoosh aka Tan-tric says:

    SG says:
    December 29, 2009 at 11:11 am

    “Schumpeter: We need reality show !!!”

    Up Knob Creek? (without a paddle)

  93. BC Bob says:

    Cindy [86],

    I like that.

    MIW [88],

    I’m heading towards your area, Krogh’s, Sparta.

  94. Shore Guy says:

    Cindy,

    Do you know off hand how much is currently going to prin and how much to int? If not, I suggest you find out. Clot, Grim, or any number of people here can help you find out.

    I say this because, as you have been paying on a sexond, you should have the ability to direct those second payments towards prin reduction so that you might be mortgage free by or before retirement.

  95. Schumpeter says:

    fiddy (80)-

    You need to rethink that whole plan, with your endgame consisting of a default on a massive loan balance.

  96. relo says:

    94: To J’s point above, the less you earn on the funds, the less compelling the mortgage scenario is (also depending on what you think the home appreciation/depreciation is likely to be). Some just like to have the cash.

    I was being facetious, not trying to rain on your parade. SC sounds like a good move. Best of luck!

  97. Shore Guy says:

    Cindy,

    You can request an am schedule from you lender. They might charge. You can have someone here generate one for you by providing:

    outstanding prin amount
    interest rate
    number of months remaining
    whether payments are made at beginning or end of the month

    Relatively small extra payments can lop YEARS off a mortgage.

  98. fiddy (94)-

    I have Evo Morales in my current deadpool. Methinks- given his recent brushes- that he is “accident prone”. This could turn out to be quite a good investment.

    BTW, I have now given in and fully accepted the UST/FED definition of investment as being any plausible gambling proposition offered by any offshore website one feels will actually pay off winners.

    “Funds would probably not be invested in anything risky like Bolivian Oil Futures.”

  99. relo says:

    101: Ha, yes, find out if SC allows lender to pursue deficiency judgement.

  100. SG (95)-

    Not much to see here. Unless you like watching middle-aged guys drink whiskey and yell at the TV during EPL matches.

    “Schumpeter: We need reality show !!!”

  101. gary says:

    My name is “Tan Jovi”! LOL! Stu, are you listening? :)

  102. relo (105)-

    Lenders can pursue deficiency judgments anywhere. If it happens to you, just declare BK. Problem solved.

    In fact, I’ve heard of a couple of instances where borrowers threaten lenders with BK if they get the judgment, and offer to make token payments…which- natch- they never make.

  103. Shore Guy is right.

    This calculator will do the work for you. To obtain the ammortization tables, click the output parameters tab. Make sure to make the start date, the original start date of your loan.

  104. I’m beginning to think coming here day after day is starting to make us all a little retarded.

  105. …in the best possible way…

  106. Gary,

    I suppose you are right. Much rather be The Sausage Party than Tan Jovi.

  107. Of all the name generators, there is none better than the ghetto name generator, although we should save it for another day.

    (Fallopian Teapot, Yo)

  108. Cindy says:

    100 – Shore – I’m all over it. That has been the goal all along. @ 4.75% int, I only pay approx. $250. a month in interest just now. Was paying $600 average on the second.

    Now add that to the $887.14 to the first. $1487 minus $250. = $1,237.
    (int. goes down about $4. a month.)

    Give me about three years. I will spend every extra penny I have. THEN I can retire.

    Or not…we shall see…

  109. John says:

    Philly stock xchange is on fire!

  110. “Philly stock xchange is on fire!”

    Indeed it is. I hope someone ‘Puts’ it out.

  111. Juice Springsteen HEHEHE says:

    Some thoughts on the next decade in the markets etc from the Minyanville staff:

    http://www.minyanville.com/dawn-of-the-decade/?id=kevin-depew

  112. "Bones" Deplume says:

    [69] lisoosh

    Yes, a tight end is a position on the offense. The tight end is at one or both ends of the offensive line and typically is a receiver on short yardage passing plays, or blocking on the running plays.

    To complete the theme (and because ther is just so much sexual innuendo in responding to post number 69), a wide receiver is also a football player on offense.

    There is also an old “prison” joke that goes, it’s better to be a tight end than a wide receiver. I’ll let you figure that one out.

  113. "Bones" Deplume says:

    [112] stu

    “Much rather be The Sausage Party than Tan Jovi.”

    I’ll bet Gator is biting her lower lip in half right now, trying to stifle a laugh or quip.

  114. "natural light" Wag says:

    BC (99)- Kroghs is a good stop. Let me know when you will be around, I live just up the block. Will stop in and buy you a few.

  115. meter says:

    @ Shore, 96:

    “If on has the assets but takes out a mortgage just for the tax break, one is paying a dollar (for no good reason) just to get 20 to 40 cents back; so one ends up throwing away 60-80 cents on the dollar, money that could be saved or invested.”

    I would agree with one caveat: unless one has an investment opportunity that will outperform the interest paid on the mortgage. E.g. in a low interest environment when the equities market is going like gangbusters.*

    * (not a recommended play by the author, to be sure)

  116. "Bones" Deplume says:

    [87] John,

    That sort of arbitrage is a good reason to try out filing single separate for a separated couple.

    As I don’t expect to be where I am much longer, and could find myself working in Philly or DC again, I may have to get the pied-a-terre, much like I did years ago while working in DC.

    If that is the case, the wife and I can lawfully file as single (or one of us as HoH), if the numbers favor it. That way, we get both the mortgage deduction and one standard deduction (subject to phaseout), avoid the marriage penalty, avoid the Obama taxes, and possibly cut our state taxes as well.

  117. John says:

    It really is on fire, shut down due to smoke conditions.

    Stu aka The Sausage Party says:
    December 29, 2009 at 11:50 am
    “Philly stock xchange is on fire!”

    Indeed it is. I hope someone ‘Puts’ it out.

  118. scribe, The Princess of Paramus says:

    John, male

    Your Jersey Shore nickname is: Juice Box

  119. Sean a.k.a Juice Box says:

    Heading to the airport, I hope to get my reach around this time from at least female TSA employee. Will I get stopped it I have a bulge in my pants?

  120. scribe, The Princess of Paramus says:

    wait

    Sean is Juice Box?

  121. John says:

    Well I like my ‘boxes” juicy, but no squirters please

    scribe, The Princess of Paramus says:
    December 29, 2009 at 12:29 pm
    wait

    Sean is Juice Box?

  122. Schumpeter says:

    Anyone who neverhad prior knowledge that this blog existed and just wandered in during the past few weeks would have to conclude that everyone posting here is certifiable.

  123. "Bones" Deplume says:

    Tell me something I don’t know:

    From CNBC:

    “As it turns out, some of the highest income states are among the unhappiest, according to a recent study by economists Andrew J. Oswald and Stephen Wu, of the University of Warwick and Hamilton College, respectively.

    Taking into account both subjective and objective factors such as sunshine, congestion and pollution in a survey of 1.3 million Americans between 2005 and 2008, the researchers determined which states have the happiest – and unhappiest – residents. Among the happiest are Louisiana, Hawaii and Florida.

    “Some might be surprised that states in the south with lower income ranked as high as they did,” said Wu, economist at Hamilton College. “States with high income rate fairly low on the happiness levels. To some it might seem counterintuitive; it’s not just about income levels, but those places might be more crowded, more congested on the roadway, [have] less available land.”

    So, what are the 10 unhappiest states in the US? Click ahead to find out!”

    And coming in at No. 5: Miss New Jersey!!!!!

  124. Shore Guy says:

    The bomb:

    I understand it was in the shape of a 6″ sausage inside his underwear. God help any guy getting on a plane with tight pants and a bit of turgidness. Security is going to take on a Monty Python flavor.

    Well, it already is, actually. Just remember, nothing that we are now doing will stop a smart cell of terrorists from bringing down one or dozens of planes on a single day, despite the nonsense security measures mentioned here:

    http://nytimes.com/article?a=520784&f=33

  125. "Bones" Deplume says:

    [131] clot

    Well, they would certainly wonder about the mental stability of Schumpeter.

    That guy’s meshuggah.

  126. "Bones" Deplume says:

    [134] shore,

    I bet pron film producers are working this theme into their latest projects as we speak.

    Look for scantily clad TSA agents deciding to take some stud in the back room for a strip search.

  127. Shore Guy says:

    Oops, going back through older posts, I see Stu and ABC already posted the bomb size.

  128. Schumpeter says:

    plume (136)-

    Why let somebody else make money on that idea?

    All you need are some hot girls, a video camera and IMovie.

    I think I can also get the owner of the Red Bull Motor Lodge in Bridgewater to give us some free rooms, as long as we’re out by sundown.

  129. Barbara says:

    re: Jersey Shore nickname generator:
    “B-Cat”

    I like it!

  130. danzud aka D-Train says:

    What a crazy bunch of scenarios to figure who makes the playoffs in the AFC except for thet Jets and Ravens. They either win or they’re out. The rest is a true crazy clusterf**

    http://sports.yahoo.com/nfl/news;_ylt=ArEUgzNQ1WvL_k71S40V8eM5nYcB?slug=ys-09playoffnittygritty&prov=yhoo&type=lgns

  131. I’m not sure how I ever get through security with the sausage I’m packing!

  132. "Bones" Deplume says:

    [138] clot

    I’m married and don’t have Tiger’s looks or money. Where am I gonna get hot girls?

  133. John says:

    The Jets are money baby, Giants suck. Been waiting 39 years to say that.

  134. John says:

    Wow I can’t imagine someone not having the looks of a balding amaafricancaucisionrasian

  135. relo says:

    142: You think any of it was Tiger’s looks?

  136. relo says:

    142: Of all the posts on this borad, this may have been the least defensible.

  137. NJGator aka The Rack says:

    Normally I spend a lot of time apologizing to folks for Stu’s comments, but he seems to fit in pretty well here.

  138. relo says:

    108: Not sure that’s accurate.

    Lenders can pursue deficiency judgments anywhere.

  139. Schumpeter says:

    relo (148)-

    That’s what I said.

  140. Escape from NJ says:

    Stu,

    Is this you at the airport? (See 1:04 start time).

    http://www.youtube.com/watch?v=9aaFRxMA7xc&feature=related

  141. Schumpeter says:

    Rack (147)-

    Too bad your alma mater’s football program is now losing its recruits because they think your coach is a head case.

  142. Schumpeter says:

    …ooh, I have chest pains…

  143. Schumpeter says:

    Obviously, Urban hasn’t figured out that the way to beat stress is to drink lots of whiskey.

    Works for me.

  144. relo says:

    151: I thought he was leaving to do the missionary w/ Tebow.

  145. NJGator aka The Rack says:

    Schump 151 – They should have let him go. They would have been better off with Stoops or Strong or Mullen rather than all this uncertainty with Meyer.

    We’ll be watching the game on Monday in enemy territory in Cincy. But at least win or lose it will give me an excuse not to spend time with my father-in-law and Stu’s Step-Mom and hear them talk about their 5 cats for the night.

    BTW – if you and Nom want to move forward with this p*rn idea, I think Stu’s old roommate in LA is still producing it. I also have a friend that used to do sound for p*rn, but I think he went completely legit after he won his Emmy.

  146. Barbara aka B-Cat says:

    I get the winter blues something bad, if they take Jersey Shore away from me how will I laugh and love?

  147. NJGator aka The Rack says:

    And if Stu roots for cincy like he is threatening to, I am cutting off his access to Skyline Chili after the game.

  148. hughesrep says:

    153

    I thought Touchdown Je$us would have laid hands upon and healed him by now? There has to be more to the story. I’m guessing it involves twelve year old Cambodians.

  149. Schumpeter says:

    Rack (155)-

    Pardon my ignorance, but what does a p0rn producer actually do?

    Write checks to the girls? Launder the mob money invested in the film? Send out for lunch?

    I also tend to think that a sound person might be a bit of overkill, too. Camcorders have a microphone built in.

    I guess I’m thinking our little “film” is more Blair Witch than Devil in Miss Jones. At a certain point in this genre, high production values probably work against you…and the returns are diminishing.

  150. Schumpeter says:

    Rack (157)-

    Chili with cinnamon and sugar in it, dumped on top of overcooked macaroni?

    Feh. Skyline should market the antidote along with that slop.

  151. NJGator aka The Rack says:

    Schump – I am guessing the producer finds the women. Vinny always did have an illustrious history of dating strippers.

    My friend who did the sound used to travel a lot for it. I never understood why they went to the expense of filming this stuff on location.

  152. NJGator aka The Rack says:

    Schump 160 – Don’t forget an entire bag full of processed shredded cheese “product” piled on top.

  153. Schumpeter says:

    Cincinnati = Louisville with pro sports

  154. Juice Springsteen HEHEHE says:

    Go Bearcats!!! This our year.

  155. Schumpeter says:

    Cincinnati coat of arms:

    “We’re not Cleveland”

  156. ruggles says:

    “At a certain point in this genre, high production values probably work against you…and the returns are diminishing.”

    Exactly who is still paying for p0rn, these days? showing your niblets online (and having them blasted across social networks) appears to have become a right of passage.

  157. relo says:

    166: Amateurs, hmph. No respect for the trade.

  158. Schumpeter says:

    One of my agents’ daughters ended up in a Girls Gone Wild a few years ago.

    It happened during Spring Break, and I told the agent in advance (in jest…I thought) that it was going to happen.

  159. NJGator aka The Rack says:

    Schump 165 – Don’t forget, they’re also not Kentucky.

  160. Schumpeter says:

    Learning moment: one has a better chance of meeting the Pope than having a Girls Gone Wild DVD with your daughter in it pulled from the market.

  161. Schumpeter says:

    Rack (169)-

    Judging from my last visit there, I’d say there’s a helluva lot of Kentucky in Cinncinnati.

  162. Schumpeter says:

    …and a lot of long-term chromosomal imbalances in the population.

  163. John says:

    So if you read WSJ today you saw NYJETS flight crew ringing bell yesterday, the Guy in the middle Larry who is a big shot over there is a nut. He used to have an email sniffer on his own employees set to Larry, his last name or any possible name for him and things as resume etc. It was supposed to be used to catch words like “guranteed” “can’t lose. The guy was on it all the time reading everyone’s emails, Then even though the guy made millions and their was a starbucks downstairs he would walk out in freezing cold to get 50 cent coffee as he could not bear spending two bucks on starbucks. Always cracks me up when people I know are in the papers

  164. NJGator aka The Rack says:

    I didn’t get a chance to respond to this baby name business yesterday, but I think I know the kid who got the shortest stick in that area. An old friend from my book group got married and kept her maiden name of McAllister. Her husband’s last name is Vargas. All of their kids have their father’s last name and get their mother’s last name as a middle name. They had their first kid in 2005 and my friend thought it would be oh so cute to give her a first name that began with an M so that her initials would be MMV, which of course are the roman numerals for 2005. And so Madison McAllister Vargas was born.

    My friend also included this factoid in her local newspaper birth announcement, which was published online, and poor little Madison was mocked on internet baby name blogs for many months afterwards.

  165. Jack Horner says:

    159: Wait a minute. You come into my house, my party, to tell me about the future? That the future is tape, videotape, and not film? That it’s amateurs and not professionals? I’m a filmmaker, which is why I will *never* make a movie on tape.

  166. NJGator aka The Rack says:

    Schump 172 – yes. That would explain my former brother-in-law.

  167. John says:

    True I met the Pope, but never was in a GGW video. Now if me and the Pope could tag team in a GGW video that would be the bomb, but then again the Pope’s balls are like the balls on a christmas tree, they are only there for decoration.

    Schumpeter says:
    December 29, 2009 at 3:03 pm
    Learning moment: one has a better chance of meeting the Pope than having a Girls Gone Wild DVD with your daughter in it pulled from the market.

  168. Schumpeter says:

    I’m becoming increasingly uncomfortable addressing you as “Rack”.

  169. NJGator says:

    Schump 178 – That’s ok. I clicked the button on the site again and was then given the new name of “The Ashley Simpson of Cape May”.

  170. ruggles says:

    177 – “Pope’s balls are like the balls on a christmas tree, they are only there for decoration.”

    His flowing dress, magic red shoes, and hot male assistant beg to differ.

  171. #175 – What an awesome flick.

  172. Schumpeter says:

    Can one of the women on the board let us know when that nickname thingy tells you you’re “Spumbucket”?

    Thanks.

  173. Schumpeter says:

    #177- so wrong, yet so right during this festive season.

  174. freedy says:

    so glad to be a renter and out of the crazy world of being an owner in NJ>

  175. Schumpeter says:

    Aren’t we all just renters, in the existential sense?

  176. freedy says:

    i guess,, but i just dont own a home in NJ and for that i’m just,, well glad

    its just going to get worse for the taxpayer .

  177. Dirk Diggler says:

    So that expalins all the Rack and Sausage galavanting.

    My friend who did the sound used to travel a lot for it. I never understood why they went to the expense of filming this stuff on location.

  178. Schumpeter says:

    I think all our p0rn references and silly nicknames today may have set up grim for one heckuva bot attack.

  179. "Bones" Deplume says:

    [146] relo

    I should have added “without spending copious amounts of money” to “where am I gonna get hot girls?”

    Course, I could go to Jersey Shore at Seaside and tell the guidos that they can be in my p0rno flick and that they get to meet John, THE MOST INTERESTING MAN IN THE WORLD. May just get them for free.

  180. Schumpeter says:

    Guido p0rn? John?

    I think you’ve just created a film genre.

  181. "Bones" Deplume says:

    We have to get off this thread before one of us scripts a p0rno starring Sausage Party, Tight End, and the Rack.

  182. Dirk Diggler says:

    189: Was only referring to the Tiger’s looks reference as indefensible.

  183. Schumpeter says:

    Jason Bay’s career now over:

    “Free-agent outfielder Jason Bay has reached agreement on a four-year, guaranteed $66 million contract with the New York Mets, a baseball source confirmed to ESPN.com Tuesday.”

  184. "Bones" Deplume says:

    [190] clot

    GRIM, NEW THREAD PLEASE???????????????

  185. Dirk Diggler says:

    193: Correct. Citi Field will turn him into a single-digit home run hitter like Wright.

  186. lostinny says:

    190 Schump
    Guido p0rn? John?

    I think you’ve just created a film genre.

    I’d rather burn my eyes out with napalm then watch that.

  187. "Bones" Deplume says:

    [193] Clot

    That sucks.

    One of my wife’s friends, now living in Colo., is a major Sox fan. His dog, Boston, passed away last year, and his new dog is named “Bay”.

    I told the wife he just might regret it as I also had a dog named after a Boston pro athlete, and he got traded.

    If I get another Boston Terrier, I may name him Bruschi. At least he’s retired so no trade threat.

  188. "Bones" Deplume says:

    [192] dirk

    Hate to admit it but he is better looking than me.

  189. "Bones" Deplume says:

    [192] dirk

    pre-nine iron, pre-crash, that is.

  190. relo says:

    J: Mets get Bay. Jets control their playoff dreams. Maybe Pope thing isn’t too far fetched?

  191. Schumpeter says:

    Today’s true RE story:

    A mortgage colleague contacted the office today to see if our processors wanted to try and run some FHA refinance files for homeowners who have taken in boarders and can actually document the income.

    An enterprising processor here said bring it on, and her first file reveals the following:

    1. Jumbo balance (meaning this one was done after the limit was raised to 729K).

    2. Sketchy credit.

    3. High amount of documented boarder income. Every spare room of the house has a tenant.

    4. Sky-high LTV (this is, after all, FHA).

    Our colleague says he’s got tons more like this in the pipeline.

    That whole McMansions as multi-fams of the future thing isn’t a joke.

    And this whole thing ain’t gonna end well.

  192. Schumpeter says:

    You should get a Boston Terrier who’s an alcoholic, on steroids and prone to strokes. That would be fun.

    “If I get another Boston Terrier, I may name him Bruschi. At least he’s retired so no trade threat.”

  193. Schumpeter says:

    The Jets will pull an epic fail this Sunday. And you’ve gotta believe it will involve Ochocinco.

  194. lisoosh aka Tan-tric says:

    “Bones” Deplume says:
    December 29, 2009 at 3:34 pm

    “We have to get off this thread before one of us scripts a p0rno starring Sausage Party, Tight End, and the Rack.”

    Known as Tan-tric now. Buddhist p0rn.

  195. John says:

    “sirsprayalot” is my new NJ name

  196. "Bones" Deplume says:

    [204] lisoosh

    Tantric
    tight end

    Knock it off, you are starting to get me hot for you.

  197. "Bones" Deplume says:

    [205] john

    Only because you drool and speak at the same time.

  198. John says:

    Arf Arf

    Bones” Deplume says:
    December 29, 2009 at 4:19 pm
    [205] john

    Only because you drool and speak at the same time.

  199. lisoosh aka Tan-tric says:

    Nice little tale of cheer from the London Financial Times. May need to google if there is an issue with the link, tile is bankers who wouldn’t say sorry:

    http://www.ft.com/cms/s/0/d3977b0e-f3eb-11de-ac55-00144feab49a.html

    “…You will all know the basic story,
    In all its venal details, gory.
    Of how a bunch of peerless clowns
    Despite degrees – from Yale to Brown –
    Behaved like schoolboys in the lab,
    When teacher’s gone to smoke a fag (cigarette).

    Exuberant beyond all reason
    (For this or any other season)
    Fired up by dreams of starter castles,
    Sardinian yachts and vineyard parcels,
    They built themselves a strange device –
    A ticking bomb, to be precise.

    …Faced with the imminent demise
    Of all world banks of any size,
    And thus of global finance too,
    The state bailed out this sorry crew.
    But were they grateful? Not a jot,
    This arrogant and greedy lot.

    …Their attitudes were so repulsive
    The public backlash grew convulsive,
    And dimly seeing that their wages
    Just might be threatened by these rages,
    Self-interest prompted some to say
    “We’re sorry” – in a muted way.

    But actions more than words do speak
    And their repentance was skin-deep,
    Just like the artful crocodile
    Shedding fake tears beside the Nile.
    (And while we’re thinking of the zoo,
    A vampire squid swims into view.)”

  200. House Whine says:

    201- Aren’t there zoning restrictions in most towns regarding taking in boarders? I don’t imagine upper middle class towns would be thrilled to have extra people, cars, kids in the house next door. On the other hand, if it prevents the property owners from going into foreclosure and helps them pay their property taxes it could be a good alternative. I know that in my town you can’t run your business out of your house, especially if you are storing the equipment or if your clients are specifically doing their business at your house but I don’t know about habitation of rooms.

  201. Shore Guy says:

    ” I am cutting off his access to Skyline Chili after the game”

    Gator Rack,

    I have heard of women naming their promised land but Skyline Chili seems a bit offbeat, even for a regular of this blog.

  202. Shore Guy says:

    Belmar tried to limit the number of people living in houses by placing limits on the number of unrelated people who can live in a given dwelling. The courts struck it down on constitutional grounds.

  203. "The Incident" fka Pat says:

    Based on cl posts, I’m surprised that more taxing authorities are not chowing down on a revenue source.

  204. Stu says:

    “I have heard of women naming their promised land but Skyline Chili seems a bit offbeat, even for a regular of this blog.”

    You know, you order your Skyline Chili by specifying three-way, four-way or five-way. Is that better?

  205. Shore Guy says:

    cl?

  206. John says:

    Guys I am audi 5000 till next year, peace out and happy new year!

  207. Juice Springsteen HEHEHE says:

    Skyline Chili is good but there’s all kinds of local chili parlors in every neighborhood in Cincinnati that are better.

  208. "The Incident" fka Pat says:

    volume on craigslist rooms sections

  209. NJGator says:

    In my college days in Gainesville, I recall we had to keep one of our female roommates off the lease of our 4 bedroom, lest our home be considered a brothel.

    I just found the website for one of the communities that I rented in back in the early 90’s. Rent is only $200/month more than I paid and now it includes free, unlimited tanning.

  210. "The Incident" fka Pat says:

    Clot, I can only HOPE that the only criticism a new reader would have of people here is “they are certifiable.”

    On a weekly basis now, I pass people IRL who won’t acknowledge my presence or existence. They look down at the ground when I smile as I pass.

    I think I’ve been ostracized by a bunch of 40-year-old former cheerleaders. At least it’s not as depressing as when I was banished from kannekt.

    The funny thing is, their husbands are all over me whenever I see them alone. It’s weird. What is up with that? Is that a Southern thing?

  211. "The Incident" fka Pat says:

    Oh…I’ve taken some sides on some local political things.

    Funny how real estate is so intricately involved in so many issues.

    And when you have some knowledge that helps the underdog, it kinda sorta pisses people off.

  212. scribe, The Princess of Paramus says:

    John, no!!!

    Don’t leave us!!!!

  213. "The Incident" fka Pat says:

    Yo Highness, never fret. He always comes back loaded with the desire to spew stories.

  214. mikeinwaiting "Bicep" says:

    BC 99 Was not online had to split or might have dropped in for a couple. Wag is very close & kettle is in striking distance.
    GTG at Krogh’s sometime maybe.

  215. bones deplume says:

    (216) John

    Come back with some new stories, big guy

  216. Shore (212)-

    How many guidos can you stuff into a house?

    “Belmar tried to limit the number of people living in houses by placing limits on the number of unrelated people who can live in a given dwelling.”

  217. freedy says:

    i went thru the rooming house BS in Pal park,clifton, and closter, if interested
    as grimm for my em .

    long stories
    ,, went thru the college students moving in
    next door, got them tossed, went the mexican
    rooming house route, and more

  218. Stu says:

    I’m pretty sure Montclair has a law on the books that prevents houses from containing more than 4 student residents with 4 different last names. This is why Montclair State does not have frat houses. At least that was the going story when I attended 15 or so years ago.

  219. BC Bob says:

    “The Incident” fka Pat says:

    The Incident?

    http://www.youtube.com/watch?v=iSXvJUvV5S4&feature=related

  220. freedy says:

    in clifton, its a free for all for the
    montclair students, how about 6student names
    on a lease. got them tossed finally ,,
    the town could care less.

  221. danzud aka D-Train says:

    Oh, back to talking about commercial real estate……

    TUCKED into Jones Lang LaSalle’s just-released, year-end “Skyline Review” is this holiday-season party pooper:

    “Net effective rents in Midtown have fallen by 42 percent since the second quarter of 2008.”

    Everybody knows the “net effective” numbers — reflecting tenant-improvement allowances and free-rent periods — are way down. But, holy cow — 42 percent!

    The net-effective data “offer a more accurate picture of the market,” JLL drolly notes, than either vacancy rates or asking rents. In other words, things are worse than most of us thought.

    Recent, large new leases reported in The Post and elsewhere have quoted Midtown asking rents from $45 to $70 square foot. But most of those numbers were shared by landlords’ agents eager to put the best possible spin on things.

    Of the zillion market surveys cranked out by real estate companies large and small, JLL’s “Skyline Revew” is the most fun, thanks to a cute foldout graphic showing vacancies in the 58 office buildings that “truly move the market.”

    The latest edition shows more red (direct-available space) and pink (sublease-available) floors than in past years, but not enough to call a glut if occupancy rate is all you care about.

    JLL says the “premier” towers — those built or significantly renovated since 1985 and boasting high-profile locations and/or tenant rosters — are in better shape than lesser properties. The premier group has 11 percent vacancies, up from just 5 percent in early 2008, and compared with 13 percent for Manhattan overall.

    The vacancy figures don’t matter that much in and of themselves, because every real estate firm comes up with different data. More meaningful is the edge the “trophy” addresses seem to have over the rest of the field. But that’s largely negated by the staggering decline in net-effective rents at the best Midtown buildings, which comprise more than 75 percent of all the “premier” properties in Manhattan.

    The vacancy data include nearly 329,000 square feet at the Macklowe-owned 510 Madison Ave., still searching for its first tenant after a previous deal collapsed, but it doesn’t include SJP Properties’ empty, 1.1 million square-foot 11 Times Square, which is not quite finished.

    JLL also noted:

    * The recession’s impact “is still filtering through the labor markets,” with nearly 90,000 Manhattan office jobs likely to be lost by the end of 2010 from the 2008 peak, and no meaningful recovery in sight until late 2011.

    * Although downtown vacancies could theoretically soar to 20 percent by 2014, right now, they are much lower than in Midtown, with Class-A vacancies in the 9-percent range.

    * Average asking rents are still falling — from $73.37 per square foot in August 2008 to just $54 in late fall of 2009. steve.cuozzo@nypost.com

  222. "The Incident" fka Pat says:

    Bob, I plugged in my real name.

    The thing is scary. When it kicked back “The Incident,” I sheet my peants.

  223. still_looking says:

    First go ’round, “J-Cat” next time, “Last Call”

    I think I’ll go with “Last Call”

    :)

    sl

  224. BC Bob says:

    “Net effective rents in Midtown have fallen by 42 percent since the second quarter of 2008.”

    Lurkerpret?

  225. lisoosh aka Tan-tric says:

    #235 – Exactly what popped into my mind.

  226. brewcrew says:

    House Whine, 210

    No need for extra cars in the driveway when the church van from Iglesia Del Dios picks you & the entire household up for work every day.

  227. NJGator says:

    For the foodies on the blog – Montclair’s 2nd annual Restaurant Week will be from Jan 25-Feb 7. Stu and I will definitely be making several reservations this year.

    “During the two weeks, Montclair’s justly famous restaurants will be the center of attention as they offer, fixed-price dinners at $31*, or less (beverages, gratuity and tax not included).

    *All revenue from the additional dollar fee will be distributed to local food charities through the Montclair Rotary Foundation, a 501c3 charity.”

    Participating restaurants listed in the following link:

    http://gotomontclairnj.com/rest-week10/restaurants.htm

  228. SG says:

    Clot:

    Any link with this guy’s theory and your new alias,

    Joseph Schumpeter

  229. ricky_nu says:

    #239

    ding ding ding, you got it SG, the reference was not lost!!!

  230. Shore Guy says:

    So, I finlly did the name generator and it gave me: The Body.

    Nice, I am named for something inside a chalk outline.

  231. Shore Guy says:

    “You know, you order your Skyline Chili by specifying three-way, four-way or five-way. Is that better?”

    How very Tiger Woodsian

  232. ricky_nu says:

    “the situation”

    “the incident”

    they call me:

    “the flatulent”

  233. Shore Guy says:

    Gator,

    What is it with all the BYOB? Does any dining location have a liquor license or is Montclair dry?

  234. Shore Guy says:

    So, Jumpin’ Jack Flash isn’t the only thing that is a gas, gas, gas, huh Ricky?

  235. SG says:

    GMAC said to be seeking more U.S. assistance

    GMAC Inc., the home and auto lender, is discussing with the Obama administration an additional aid package of about $3 billion to $4 billion, according to a person familiar with the matter.

    The size of the assistance remains under negotiation, the person said on condition of anonymity because the talks were private. A deal may be reached within days as Detroit-based GMAC incorporates losses from its home loan businesses, the person said. The objective is to restore the company to profit in the first three months of next year.

    GMAC has already received two rounds of government aid totaling $13.5 billion as it struggled with losses at its mortgage operations, which include Residential Capital, known as ResCap.

    The Obama administration regards the lender as crucial to the survival of the U.S. auto industry. General Motors Co., its former parent, and Chrysler Group rely on the firm to finance their vehicle buyers.

    “We have been conducting a strategic review of our business and evaluating options to address the challenges,” GMAC spokeswoman Gina Proia said Tuesday.

    GMAC was ordered in May to raise as much as $9.1 billion in new capital after the government’s stress tests of finance companies. The U.S. gave the lender $3.5 billion toward that goal, leaving a capital hole as large as $5.6 billion.

  236. Cindy says:

    http://www.ritholtz.com/blog/2009/12/the-place-where-reform-goes-to-die/

    SG – Did you happen to read this? Warning: It will make you sick to your stomach.

  237. Cindy says:

    http://www.bloomberg.com/apps/news?pid=20601070&sid=aeCM9Ro8WDpM

    How can you beat a headline like this?

    “Christie Channels Schwarzenegger as New Jersey Braces for Cuts”

    Stu/Gator – Only one library in Montclair?

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