From CNBC:
As Foreclosures Ramp Up, New Roadblocks Ahead
Fraudulent foreclosure practices, a.k.a. “robo-signing,” uncovered now nearly two years ago, opened a new wound in the foreclosure crisis that was in the process of healing.
At big bank mortgage servicers and in courts in many states, the foreclosure process ground to a halt, and the pipeline of delinquent loans swelled to historic levels. Lawsuits abounded and lengthy settlement negotiations on all levels of government began.
Nearly two years later, the foreclosure mechanism is just starting to move again.
Foreclosure starts, the first phase of the process, rose nearly 12 percent in May month-to-month, according to a new report from Lender Processing Services. Foreclosures sales, when the property goes back to the bank or to a bidder at the courthouse steps, rose 10 percent.
The ramp-up, while still way off the volumes of 2010 (pre-robo-signing), is largely due to the $25 billion settlement reached early this year between 49 state attorneys general and the nation’s largest mortgage servicers.
…
It all comes down to consumer protections versus a speedy recovery to housing. Whether it’s lenders trying to save borrowers from foreclosure through modifications and principal reduction, or laws trying to protect borrowers from faulty foreclosure processing, or inventive ways to change what is owed on a mortgage, the plain fact is that many borrowers simply cannot afford the homes they are in.The majority of the 5.5 million properties whose mortgages are either delinquent or already in the foreclosure process will end up on the auction block.
There is a strong argument that the housing market needs to heal itself before it can grow again, no matter how painful that healing process may be. Clearly American consumers were not well-protected during the historic housing boom, nor during the ensuing bust. Laws needed to be changed, and banks needed to be held accountable and punished for fraudulent practices.
The question now is: When do we step back and let the wounds of this crisis heal?
Phirst.
How to afford a home in Ridgewood, from the Record:
Former Ridgewood resident admits bilking $2 million from people in phony investment scheme
A former Ridgewood woman admitted Tuesday that she bilked nearly $2 million from friends in New Jersey by getting them to invest in apartment complexes and undeveloped land in Oklahoma.
Taya Romano, a masseuse-turned-real estate developer, pleaded guilty to a single count of conspiracy to commit wire fraud before U.S. District Judge Peter G. Sheridan in Trenton. She faces five years in prison and fines of up to twice the losses suffered by her victims when she is sentenced on Nov. 25.
In 2008 and 2009, Romano, who was known as Taya Waldon at the time, and her then husband solicited a total of $1,032,750 from one couple and $890,000 from a second couple that she told them would fund real estate purchases and improvements in Oklahoma, where she currently resides, authorities said.
None of the money has been returned, and Romano put little, if any, of the funds to the uses it had been solicited for, authorities said.
Good morning New Jersey, Good Morning Mike
Good mourning New Jersey.
(Reuters) – The U.S. futures industry reeled on Tuesday as regulators accused Iowa-based broker PFGBest of misappropriating over $200 million in customer funds for more than two years, a new blow to trader trust just months after MF Global’s collapse.
snip
The CFTC complaint, which relies on many of the details released on Monday by the NFA, the broker’s main regulator, said the bank account that PFG reported was holding $225 million in 1,845 customer accounts actually contained only $5 million.
snip
http://www.reuters.com/article/2012/07/10/us-broker-pfgbest-mfglobal-idUSBRE86909K20120710?feedType=RSS&feedName=topNews&rpc=71
[5] from the article, this broker’s line made me laugh out loud. I guess greed is good so long as your on the “right” side of it:
snip
PFGBest officials have said nothing beyond a notice to clients on Monday confirming an investigation into “accounting irregularities” and advising customers that they could liquidate open trading positions but would not be able to withdraw cash or initiate any new trades.
For the company’s several-hundred employees, some of whom had already packed up, the mood was somber.
“It’s like a wake here. Everybody is scrambling trying to find a job in this economy; it’s not so easy,” said one broker in Chicago. “It’s the reality of life. There is a lot of greed in this world. And I am on the wrong side of it this time.”
The San Bernardino City Council voted Tuesday, July 10, to seek bankruptcy protection, calling it the city’s best option to solve a budget crisis in which it faces a $45 million deficit.
http://times247.com/articles/san-bernadino-another-calif-city-goes-bankrupt
Can we post more Drudge links? Puleaaaaze???
That way we can pretend to be well-informed.
Lakshman Achuthan, co-founder of the Economic Cycle Research Institute, spoke with Bloomberg Television’s Tom Keene today (7/10/12) and said that, “What we said back in December was that the most likely start date for the recession would be in Q1 and if not then, by the middle of 2012. I’m here to reaffirm that. I think we’re in a recession already.” And just like us, the anagrammatic ECRI economist believes that “It is not all about GDP. It is about jobs. It is about income and sales. A recession is a vicious interplay among output, input, employment, income and sales” noting that recessions don’t generally start with a cliff (that everyone looks for) adding (rather ominously): “there is this belief that somehow government or a central bank will stave off a recession. For the last 220 years, you do some history with Hamilton, which ended in a duel by the way… you have had 47 recessions. Why are we going to avoid the 48th?”
I would also like to request that all posts today be cynical, depressing, and sarcastic.
Remember these?
THE OBAMA CHRONICLES:
“I promise that I support traditional marriage-1 man-1 woman.
“I promise 100% transparency in my administration.”.
“I promise NO NEW TAXES on a family making less than $250K a year.”
“I will allow 5 days of public comment before I sign any bills.”.
“I will remove earmarks from PORK projects before I sign any bill.”.
“I will end Income Tax for seniors making less than $50K a year.”.
“I will bring ALL of our troops home within ONE year.”
“I’ll put the Health Care negotiations on CSPAN so everyone can see who is at the table!”.
“I’ll have no lobbyists in my administration.”
“I’ll close Guantanamo.”
“I’ll resign if I don’t cut the deficit in half by the end of four years.”
“I’ll cut the debt by half in my first term–Obama 2004 and 2008.
“I’ll unite the people of this great country.”…
Any Questions?
The good news is my vacation starts tomorrow. The bad news is I’m going to NJ. Cynical enough, Brian?
I live in NJ. Everyday is a vacation for me ;)
From the Star Ledger:
Buyers won’t bite on Whitney Houston’s former Mendham mansion
For sale: Large home in Mendham Township. 5 BR. 5 bathrooms. Central A/C. Soaring ceilings, a circular-themed interior.
The modern, 12,500-square-foot home on North Gate Road has a lot going for it. A swimming pool and a jacuzzi. Plenty of natural light. Three fireplaces, walk-in closets, a bar, floor-to-ceiling windows. It has Frank Lloyd Wright-style stained glass in the entry and an enormous kitchen.
And history. Lots of history. If its walls could talk they’d tell tales of lavish weddings and bitter breakups. They’d talk of fortunes made and lost, of opulent parties and delinquent notices.
But what Whitney Houston’s former mansion has not seen in the more than three years it has been on the market is a buyer.
Though the New Jersey pop icon’s passing sparked a wave of new interest, a sale has not been finalized, said real estate agent Robert Cross.
…
She bought the Mendham estate in 1987 for $2.7 million. Bids have come in around $1.75 million, Cross said. The property taxes on the home are close to $40,000 a year.
Celebrity homes attract a lot of interest, but that does not always translate into buyers, Cross said.
…
Perhaps its most notable feature is the architectural resemblance to Newark Airport.
The architect designed it based on Terminal C, said Stew Bitterman, who commissioned the house in 1985.
http://online.wsj.com/article/SB10001424052702303567704577517421490058222.html?mod=ITP_marketplace_2
Mike Vick start clothing line. Hurry
http://online.wsj.com/article/SB10001424052702303933404577505192265987100.html?mod=ITP_pageone_1
Tatto Checks on Visa Apps.
They would never get away with it in NJ.
Krugman on CNBC right now
Freedy please tell me Vicks clothing line is going to be fur : )
$300,000 loan at 6% =$1798.65/month
$430,000 loan at 3%=$1812.90/month
A person that makes $120K that can well afford a $300K loan with 20% down,that is 3x income is equal to a person that can afford a $430K loan with 20% down,at 4.3 x income ,disregarding taxes.
You can buy 43% more of a house of your income today
Any question?
Don’t worry Mr. Fast Eddie, I never make promises I can’t keep.
Elect me, and I promise I’ll solve all of your friend Gary’s problems.
Just what I want, a house designed to look like Terminal C.
“I would also like to request that all posts today be cynical, depressing, and sarcastic.”
So, as opposed to other days, you want us to be more upbeat?
23 –
I was being sarcastic
#20 yo: No questions. Because it makes no sense. The loan of 430k @3% is bogus, as the 3% is supporting the still (in many cases) over priced houses. Lets have normal interest rates and let prices adjust accordingly.
[14] Brian – Ahh, I see. Now I know how TPTB get you to buy those houses. Mass Hypnosis.
I live in NJ. Everyday is a vacation for me ;)
12. You should make t-shirts with that catch phrase.
“The question now is: When do we step back and let the wounds of this crisis heal?”
That is just a question,not an answer.Prices have gone down mortgage to income has never been lower.It is almost interest free for 30 years.I guess what the author is hesitant to say is,lower the value of the homes and refinance the mortgages of current homes bought during the bubble which the current adminstration suggested.Most will be against.
yo [20],
A few questions:
1) Where are the jobs?
2) Why are salaries flat for a decade?
3) How does fast and furious property taxes fit into that calculation?
Who are you to question the market?If people are buying at that price,it is the value.It is not what you want it to be.
3B says:
July 11, 2012 at 8:47 am
#20 yo: No questions. Because it makes no sense. The loan of 430k @3% is bogus, as the 3% is supporting the still (in many cases) over priced houses. Lets have normal interest rates and let prices adjust accordingly
[15] grim – OK, I’ll step in for JJ – The carpet might match the drapes, but the carpet sill needs to be replaced as it has been heavily munched. I remember the one weekend on Fire Island when I tempted a couple of lesbos to do a tryout for the other team…
Buyers won’t bite on Whitney Houston’s former Mendham mansion
Jill: From Last night. He is a pretty free spirited guy, so I don’t know if I can get him to do it for you. (for us he will as he is family), but I can see what I will do.
Mitt [21],
Gary’s problems will be solved simply by tossing the mope currently in the White House out of office.
Vick will reintroduce the Platform Shoe line.
You are a big fan of let the market price itself.
1.Where are the job? Is that priced in to the market value?
2.Why are salaries flat the last decade?it has been flat last 30 years.Again,Is that priced in to market value?
3.Property taxes:read the post again.At 43% more of what you can buy,a buyer can adjust to a lower purchase to adjust for increase in taxes,No?
[31] cont’d …and then by buddy says to me the next day, “You know who that girl was you bedded last night?” Except that night she was guarding my body, doing frequent patrols almost every hour on the hour.
#30 yo: And I guess that same thing can be said for the bubble pricing. And I questioned (along with every one here), and it turns out we were all right. So I like to question, and I continue to question, and will always question.
Artificially low rates are just propping up something that should not be propped up. These low rates are going to end us biting us hard in the you know where.
Keep in mind I am buying, but I don’t believe we are at the bottom in housing. I have consistently said that. I am not changing my mind simply because I am buying or have bought. So I don’t sit where I stand or stand where I sit, or fart in the dark. I still believe prices will fall further.
Yes,I do.Same can be said with the Tech bubble.Price is what people are willing to pay.It is the job of the Authority to stop this bubbles.Or the common sense of the person buying.I think you are a sensible person for thinking prices are still coming down.
#30 yo: And I guess that same thing can be said for the bubble pricing. And I questioned (along with every one here), and it turns out we were all right. So I like to question, and I continue to question, and will always question
Property taxes:read the post again.At 43% more of what you can buy,a buyer can adjust to a lower purchase to adjust for increase in taxes,No?
So, as property taxes increase unabated, the price of houses will continue to fall. I wonder what a 4/2.5 CHC in Upper Haughtyville will go for when property taxes break the 50K/yr. threshold?
[29] gary – They’re only flat nominally;-)
2) Why are salaries flat for a decade?
Mr. Fast Eddie,
I like the way you think. Say, I’m looking for a VP candidate….what are you doing for the next four years?
Eddie [18];
You see the clip of Krugman blowing his top on a panel discussion? Spanish economist said the Duke has no clothes.
http://www.zerohedge.com/news/ultimate-krugman-take-down
“what are you doing for the next four years?”
Well, August 29 through November 6, anyway. It could be a good short-term gig, with the opportunity to earn lots of frequent flier miles.
Regarding housing prices right now……from the long-term perspective, yeah you can find a bunch of people shoehorning a mortgage into their budget given the low rates, but you will have an interest rate headwind in your face for the next 20 years once we get through this period. Essentially, you have almost zero chance of any capital appreciation for a good long-time, because your buyers are going to be pushed away by the monthly PITI nut……..every home today is going to be the Roach Motel….you can buy it, but will ever be able to sell it without getting soaked on a “real” basis?
“I was being sarcastic”
I know. As was I. Well, facetious anyway.
Chifi,
BUT, you get: “Pride in ownership” ; to “get on with your life”; “Achieve the American dream”; and “set down roots.”
Eddie [38];
I think the psychological tipping point will be when the tax bill equals the mortgage P+I. People will think — the mortgage is fixed and goes away in 30 years, the taxes aren’t, and don’t. Hmmm… Kind of an intractible box. The government can’t let that happen. Inflation helps on house price, it equally hurts on tax bill (the public sector unions gotta eat with that money, too). If interest rates go up (and they must if the printing press keeps running) then the P+I goes up too, but list prices stay level in the face of runaway inflation.
Personally I would have thought that interest rates resulting from QE1 in 2008 would have been pushing double-digits by now, and interest rates would have been the pin that definitively pricked the bubble. But the market stayed irrational longer than I could stand my spouse bitching about the small apartment we were living in. So you cut the best deal you can on the best property you can find. Like Grim always said, you can’t get tommorrow’s price today.
29. Salaries flat? That’s capitalism baby! -mitt
My friends all made out like bandits! – mitt
ChiFi [43];
Only defense I see is to get on board something that inflation will lift — cash ain’t it.
Salaries?? Salaries????!!! You must have me confused with someone who gives a sh:t!!! -mitt
Obama needs to bring Summers back. Ivy league doucheb@gs are the only answer to out problems.
One faces a head wind for the next twenty years, but inflation will be eating away at that 3.5% mortgage every year too. Inflation and length of time before one sells the home are important parts of the 2012 buying equation.
The part of NJ property taxes will be played by the Whomping Willow Tree:
http://www.youtube.com/watch?v=85A__OIBxx8&feature=related
#20
You can buy 43% more of a house of your income today add to that the amount home prices have gone down
32 – is that sarcastic and cynical or both?
Fast Eddie says:
July 11, 2012 at 8:54 am
Mitt [21],
Gary’s problems will be solved simply by tossing the mope currently in the White House out of office.
sarcastic or cynical…or both
Can anyone find the Krugman debate video on any site other than youtube? They block it here……
41.Anon E. Moose says:
July 11, 2012 at 9:16 am
Eddie [18];
You see the clip of Krugman blowing his top on a panel discussion? Spanish economist said the Duke has no clothes.
http://www.zerohedge.com/news/ultimate-krugman-take-down
Historically homes rise at the rate of inflation after you back out costs of ownership. It is a complete myth and an outright lie to say homes perform well over long time. Homes once inflation adjusted are at 2002 prices, 1982 prices, 1900 prices, 1850 prices etc.
Homes are a Hedge against inflation, Homes can produce rental income, Homes have tax advantages, Homes are a Hedge against rising rents. BUT HOMES themselves ARE NOT AN INVESTMENT. Inflation adjusted over 30 years you have made zero return. Also you have to factor in what other choices you had at time of investment.
Lets say in 1982 you bought at home for 100K CASH now worth 500K. Sounds great. But in 1982 30 year treasuries paid 16% interest. You gave up 480K interest you could of had in Treasurys, Also you would have re-invested interest lets say average of 30 year rates was 8% over the period that would leave you with an additional. 600K in interest. So in total you would have made 1,080,000 buying a 30 year treasury bond at 16% in 1982 and simply buying another 30 year treasury bond every January 1st with the interest income. No paperwork, no re taxes no headaches. Homes also serve a diversifitation purpose. Stocks, Bonds, Comodities and RE round out a portfolo. In 1982 Stocks or Bonds would have been far and away the clear winner over 30 years as a pure investment. RE after crashes such as in 1992 or right after 9/11 in Manhattan or in 2009 you see vultures come out and buy. But RE at full price in a non-distress sale in a good RE market historically has not been a good investment. Heck a 5 year CD bought on July 2007 maturing this week would have been a rock star next to RE bought 5 years ago
WickedOrange says:
July 11, 2012 at 9:32 am
One faces a head wind for the next twenty years, but inflation will be eating away at that 3.5% mortgage every year too. Inflation and length of time before one sells the home are important parts of the 2012 buying equation.
Like Grim always said, you can’t get tommorrow’s price today.
Of course you can, buy today and short the case schiller home price index. If you think your home will fall another 100K by July 2015, buy a three year put option against case schiller index that will pay off 100K. Hedge baby Hedge.
I would be that we are so close to the fiscal cliff that you can see it from here. What we really need is a good community organizer right now. -obammy
I can well afford a loan with 3% down. So if rates overall have fallen 3% that means the return I can get on my fixed income portfolio has fallen 3% and mortgage rates have fallen 3%.
Well afford a loan means you have enough cash to buy home but took out a mortgage loan for tax purposes. I put a bid in on a vacation home where I am taking a mortgage and bank wanted proof of funds. They have no problem with you taken a mortgage out but you have to show you have the cash to close if mortgage is denied.
Well affordable is laughable on a 300K house with 20% down and a 120K income. They buyer has only saved 6 months income. The average person should have savings of 10x your age.
yo says:
July 11, 2012 at 8:35 am
$300,000 loan at 6% =$1798.65/month
$430,000 loan at 3%=$1812.90/month
A person that makes $120K that can well afford a $300K loan with 20% down,that is 3x income is equal to a person that can afford a $430K loan with 20% down,at 4.3 x income ,disregarding taxes.
You can buy 43% more of a house of your income today
Any question?
Modern American Currency:
One dollar bill: George Washington.
Five dollar bill: Abraham Lincoln.
Ten dollar bill: Alexander Hamilton.
Twenty dollar bill: Andrew Jackson.
Fifty dollar bill: Ulysses S. Grant
One hundred dollar bill: Benjamin Franklin.
Food Stamps: Barack Oblama.
JJ,
You are assuming a home buyer today is buying for investment.I am assuming a home buyer today is exchanging what he pays for rent to a fixed mortgage of a house.You are right with your numbers but you forget to deduct rent in the equation.Unless,you are staying with your parents for 30 years and just invest that amount.
Question out there, does anyone have a good tip for long term parking at EWR? Park2Go looks to be cheapest(10 day vs 18 @EWR), but I’m not sure about the reviews.
Hey! What about me? Don’t forget the $2 bill.
I’ve said that to him before, he continues to talk about his own situation. If it’s your primary residence and not an investment property, your monthly rent is part of the equation.
Shelter is a basic human need like food and clothing.
Most everybody on the blog here who is just looking for a primary residence weighs whether or not they should rent housing or buy it.
63.yo says:
July 11, 2012 at 10:18 am
JJ,
You are assuming a home buyer today is buying for investment.I am assuming a home buyer today is exchanging what he pays for rent to a fixed mortgage of a house.You are right with your numbers but you forget to deduct rent in the equation.Unless,you are staying with your parents for 30 years and just invest that amount.
Who said anything about “investment”? I’m just looking for a stable environment to raise a family and not have to bring a check to the table when I sell in 20 years.
NWNJ
ABC parking.
Make sure you get the coupon on the reservation form at http://abcairportparking.net/.
Do not use Park 2 Go!!!
Let’s say in 1982, you need a place to live. You have enough money to either rent or buy housing. You cannot buy 30 year treasuries because you cannot live inside them.
Treasuries just don’t seem to protect you from heat, cold, rain etc. the way a house does.
“Lets say in 1982 you bought at home for 100K CASH now worth 500K. Sounds great. But in 1982 30 year treasuries paid 16% interest. You gave up 480K interest you could of had in Treasurys, Also you would have re-invested interest lets say average of 30 year rates was 8% over the period that would leave you with an additional. 600K in interest. So in total you would have made 1,080,000 buying a 30 year treasury bond at 16% in 1982 and simply buying another 30 year treasury bond every January 1st with the interest income. No paperwork, no re taxes no headaches. Homes also serve a diversifitation purpose. Stocks, Bonds, Comodities and RE round out a portfolo. In 1982 Stocks or Bonds would have been far and away the clear winner over 30 years as a pure investment. RE after crashes such as in 1992 or right after 9/11 in Manhattan or in 2009 you see vultures come out and buy. But RE at full price in a non-distress sale in a good RE market historically has not been a good investment. Heck a 5 year CD bought on July 2007 maturing this week would have been a rock star next to RE bought 5 years ago”
I get the distinct impression that this is gonna fry Essex and Seif’s onions . . .
http://taxprof.typepad.com/.a/6a00d8341c4eab53ef017616525479970c-popup
Thanks Tard, I just submitted the reservation. I appreciate the advice, it’s hard to believe the review sites with all of the bogus profiles.
70. Our net for the past decade has been in the higher bracket. So this aint news brutha.
nwnj says:
July 11, 2012 at 10:29 am
Question out there, does anyone have a good tip for long term parking at EWR? Park2Go looks to be cheapest(10 day vs 18 @EWR), but I’m not sure about the reviews.
http://www.airportparkingreservations.com
I bought an estate sale and within my means. A low end home in a highend town (in terms of services). A nice flat .23 acre lot that’s not on a double line eight miles from the GW bridge. I’m no longer concerend with home prices in the short term. It’s a nice feeling.
[72] sx,
The point is that the shift in tax burden onto the highest quintile (which has been a trend, look at historical data) seems to be at odds with the assertion made by you and yours that the highest quintile doesn’t pay its “fair share” in taxes.
In fact, I haven’t even heard a plausible definition from the left of what constitutes “fair share”. In NYU’s Graduate Tax Program, Tax Policy is a required course and there I observed that every theory of “social justice” used to justify progressive taxation can be reduced to one underlying theory, Marginal Utility. Of course, there was another economist who based his theory on Marginal Utility when he penned “from each according to their abilities, to each according to their need.”
BTW, I aced Tax Policy even though it wasn’t a blind-graded course and the prof and I argued bitterly.
nwnj [64];
I used Airpark. Forget the price, I haven’t flown the airlines in a while. You can check the hotels around the airport, too. They sometimes have a parking deal and use their shuttle to get you to/from the terminal.
Nom but obviously our current budget problems are because the top 1% don’t pay enough!
At this point the only realistic option is to start looking at expatriation. though the costs for exit will become more prohibitive the longer the wait. What a f*cking bannana republic this nation has become
75. First off – i am really more of a person who thinks like a southern democrat so most of the typical knee-jerk reactions to taxation and social issues don’t count with me.
[43] chifi – Roach Motel – love it.
Home occupiers check in. They don’t check out.
re# 41- Moose – We simply do not have forever to fix the economy and debates like this one have been going on for years now. It is a further waste of time, and time is a luxury we cannot waste anymore.
Simply put we had an economy that over three decades became addicted to ever accelerating private sector credit expansion. We had to pile on more and more debt to produce GDP growth. Then it blew up with the household private debt around 100% of GDP. Private Debt continues to deflate so called dis-inflation and the government continues to step in and attempt to reflate. They the government cannot spend enough to reflate hence Krugman’s argument they should try anyway and spend spend spend. The other side of the coin here is how much credit does our government actually have before our credit and our fiat currency end? We cannot go on forever we all know history is riddled with Weinmars, and now it is only a matter or time.
Maybe the quick fix to the housing market is abolish public schools.
how is Gary think that getting Mitt in will “solve all of his problems” any different than those that he mocks who thought Obama would solve all of theirs?
“Obama/Romney gonna pay my mortgage!”
I (heart) fried onions! especially caramelized ones…when they are in mashed potatoes. yum.
81. Let’s Privatize social security !!!
83. Repeal Roe V Wade !!
[49] Moose – Buy a full oil tanker and live there.
Only defense I see is to get on board something that inflation will lift — cash ain’t it.
re # 68 – Libtard I know how to park for free at EWR, in one of the offsite lots but I won’t share because then everyone will know and the free parking will not be free anymore.
i recently saw a groupon for “3 days of parking at EWR for $11” or maybe it was $11 a day. check into that.
[62] gary – What, you hate women too? At least I’ll still have some tangible value in 100 years.
Modern American Currency:
House near where I live sold the other day. New neighbors are moving in and they seem pretty friendly.
Another house across the street remains unsold for the third year in a row. I haven’t looking into what the issue is but I believe that they still have 2009 pricing on the unit.
Another house nearby has a notice of vacancy indicating that the mortgage company has been notified that the house is vacant and the city is doing what they can to make sure that the servicer maintains the property.
Seems like housing is a mixed bag right now, some sales are going through, some houses languish on the market FOREVER, and some are being taken back by the bank. Overall I think there are too many mixed signals to call the direction of house prices.
Maryland is crazy, some places are getting lots sales, others not so much.
[66] Brian – Either way you are still renting it. If we changed nothing except universally refer to “Property Tax” as “Rent”, significantly fewer people would buy. If that were so it would make the following statement joyfully ambiguous:
“Why would I want to a pay a mortgage AND rent, when I can just pay rent?”
Most everybody on the blog here who is just looking for a primary residence weighs whether or not they should rent housing or buy it.
seif [82];
Its because the people who favor Romnery don’t want him to steal other folks money and give some crumbs of it to us in bennies. Romney ‘solving our problems’ means lowering taxes, cutting spending, and getting the hell out of the way. Funny story about Hong Kong becoming a capitalist mecca of the Pacific Rim because the British set up a few courts to resolve disputes and were sipping tea by 4PM every afternoon.
another close in The ‘Fly:
Last LP: $649,000 ML#: 1215738
Addr: 46 EVERGREEN PL RES/S
Twn: TENAFLY Zip: 07670
Orig LP: $649,000
Sold: $645,000
SD: 7/10/2012 UCD: 5/14/2012 DOM: 15
and another under contract in The ‘Fly:
Est Cls Dt: 8/15/2012 UCD: 7/10/2012 DOM: 38
I’ve parked at at least 10 different parking vendors. Nothing is as cheap and efficient as ABC. If the shuttle is crowded at pickup on your return, bust out the door of the van and hustle into the trailer to be the first to pay to avoid the five-minute wait of everyone else on the van paying. I tip the shuttle drivers a couple bucks too. It’s a good service. Some of them are not.
Juice…so you take a cab over from the lot?
In fact what i find so amusing is the disconnect between what DC says it will do and what it actually achieves. But no i have no real dog in this hunt.
I don’t know how so many of you suckers keep believing these politicians are representing you. Most of them should really be in prison. Rangel and Dodd immediately come to mind, but the list is truly endless and contains members of both parties. But keep cheerleading for them. That is exactly what they want. As you end up in debtor’s prison and they somehow avoid the real prison.
There are plenty of alternatives to cash. Just remember what my job is and where I live. I still am surprised (shocked is too strong a word), by the attitude of people, who come in my office or I meet in my neighborhood, and their expectations of real estate.
Q: Why are the kindergarten sign-ups lower than in previous years? A: the market has been frozen for 5-7 years so young families are not moving in….
Q: But look at interest rates and housing prices compared to several years ago? A: Are you an amnesiac you fcuking idiot?
Anon E. Moose says:
July 11, 2012 at 9:28 am
ChiFi [43];
Only defense I see is to get on board something that inflation will lift — cash ain’t it.
97. Amen.
Anecdote: The price points in the latest Williams-Sonoma catalogue are MUCH higher. It’s as if they have given up on the aspirational buyer and are going full bore for the 1%….
More annecdata: Congress in Cape May $50 breakfast at Blue Pig….portions smaller, less people, prices high’ish. Surf shops marking surf short up to $49. Lots if inventory. Same crap at Marshalls for $19. Doh
“Rangel and Dodd immediately come to mind”
We would all be better off if we had more Peter DeFazios in congress.
97 – you assume that all these “suckers” don’t know both sides are criminal – that is YOUR issue; i think this is a bad assumption. people like to root: my friends who are SF Giant fans undeniably thought that Bonds was a blatant cheater, criminal, whatever…but they still went nuts every time he hit one out of the park for their team. thats just the way it is.
103. Actually i think it is bleaker than that. Most people have simply given up. The incumbant has lost many true believers. Should be very close in Nov.
“The point is that the shift in tax burden onto the highest quintile (which has been a trend, look at historical data) seems to be at odds with the assertion made by you and yours that the highest quintile doesn’t pay its “fair share” in taxes.”
Nom,
It is clear that most of the people who rail against the taxes the “rich” pay don’t care about fairness, they just want some other schlub to pay more. They say, “the rich get the most tax breaks, pay more,” but, if anyone suggests that we eliminate deductions the response is “No fcuking way, pal.” I for one have no problem with taxing interest, dividands, rents, royalties, and capgains at ordinary rates. Lets just not tax my last dollar at an amount higher or lower than your last dollar.
“incumbant has lost many true believers”
True that may be but, they will hold their nose and vote for him over Mitt.
My guess is that Romney is better for NJ if he just unlocks the FDA gridlock! Open those pipelines and let the new drugs flow!!!
CHifi our TrUP strategy was almost as good as our TBTF strategy and our Do the opposite of Whitney strategy. I think still room to run in bank bonds.
BofA Lifts Bank Bonds to Best Returns of 2012: Credit Markets
By Sridhar Natarajan and Lisa Abramowicz – Jul 11, 2012 11:55 AM ET
Bank bonds are outperforming every other industry this year as financial firms reduce their supply of debt and boost capital to meet new risk-curbing regulations.
Bank of America Corp. (BAC) and Lloyds Banking Group Plc (LLOY) lead 8.1 percent returns on dollar-denominated bank notes since year-end, versus 5.4 percent on non-financial bonds, according to Bank of America Merrill Lynch index data. Last year, bank bonds were the worst performers, gaining 1.71 percent.
Right. Which is why you consider all factors when making a decision. Especially the PITI when buying using leverage.
“Why would I want to a pay a mortgage AND rent, when I can just pay rent?”
Yeah makes sense for some, not for others. You are on one side of the fence, some people are on the other. If mobility is important to you, rent is the way to go. A mortgage and a home is a big commitment and not something to take lightly but, it also deserves consideration for some people.
90.leftist commie socialist income redistributor says:
July 11, 2012 at 11:40 am
[66] Brian – Either way you are still renting it. If we changed nothing except universally refer to “Property Tax” as “Rent”, significantly fewer people would buy. If that were so it would make the following statement joyfully ambiguous:
“Why would I want to a pay a mortgage AND rent, when I can just pay rent?”
Most everybody on the blog here who is just looking for a primary residence weighs whether or not they should rent housing or buy it.
106. Shore my gut tells me they won’t turn out this time.
America could use some new blood in the White House.
Back them my friends all bought stocks or bonds and lived in rent stablized units. In the 1990s for instance houses were flat the whole decade. Stocks were returning 20% a year. My best friend who seems to be always lucky graduated college in 1986, joined IBM in Fall of 1987 right after crash rented a rent stablized apt below mkt in Manhattan and went 100% in Tech stocks from Fall of 1987 to January 2000. Every other paycheck went into stocks. He bought a huge loft in Tribecca in Feb 2000 and sold all his stocks., now married with kids he sold the Loft in Spring of 2011 and went 100% into munis, treasuries, corporates and stocks and found a deal on another rent stablized unit. He wants to go back into RE again in next year or two, I am almost waiting for him to make his move as he is always lucky,
Brian says:
July 11, 2012 at 10:44 am
Let’s say in 1982, you need a place to live. You have enough money to either rent or buy housing. You cannot buy 30 year treasuries because you cannot live inside them.
Treasuries just don’t seem to protect you from heat, cold, rain etc. the way a house does.
Romney is Morman, perphaps Michelle Obama can stay and Mitt can just take on another wife.Maybe O can be like the guy in driving miss daisy and stick around too
Essex says:
July 11, 2012 at 12:22 pm
America could use some new blood in the White House.
[67] Wicked – that should be attainable easily by anyone, especially if you can afford your monthly nut on just one income and either pay a 15 or overpay a 30 with a 20-40% down payment. You can really only mess it up by doing cash-out refis every 2-5 years, but who would do that?
Who said anything about “investment”? I’m just looking for a stable environment to raise a family and not have to bring a check to the table when I sell in 20 years.
[113] JJ – I’m confused. Would O be doing the driving or would he just be watching Romney doing the driving?
Romney is Morman, perphaps Michelle Obama can stay and Mitt can just take on another wife.Maybe O can be like the guy in driving miss daisy and stick around too
On a separate note the count of disgusting pigs proudly sporting bikinis is through the roof . It’s over ladies you lost the genetic lottery. I blame Snookie for their newfound positive body image.
You don’t want to wait 6-8 weeks until the other side of Labor Day? Fixed Income isn’t like equitites….you aren’t going to get dusted…..you have every schlub in the world moping around looking for yield after their goodies go called in the last 12 weeks…..don’t you want to wait for something bad to happen before jumping in?
raging bull jj says:
July 11, 2012 at 12:18 pm
CHifi our TrUP strategy was almost as good as our TBTF strategy and our Do the opposite of Whitney strategy. I think still room to run in bank bonds.
go = got
boomers suck…a bunch of mindless locusts that never seem to understand that cause and effect to explain why bad things happen…..how were we supposed to know? I don’t know….maybe self-control? think things through before making a big decision? maybe you feel as if someone is getting away with something that in fact that actually may not be the case?
leftist commie socialist income redistributor says:
July 11, 2012 at 12:35 pm
[67] Wicked – that should be attainable easily by anyone, especially if you can afford your monthly nut on just one income and either pay a 15 or overpay a 30 with a 20-40% down payment. You can really only mess it up by doing cash-out refis every 2-5 years, but who would do that?
Who said anything about “investment”? I’m just looking for a stable environment to raise a family and not have to bring a check to the table when I sell in 20 years.
More……money should not be a barrier preventing attedance at the college of your choice……why is college so expensive? STFU!!!!!!
Chifi I always hated that statement – got into USC in the early 90’s proudly showed single mom my acceptance letter with puffed out chest only to be struck down with the firm hand of reality by one simple statement – how are you going to pay for it? and that was when it was still somewhat affordable to out of staters. People are ridiculous when it comes to their precious little ones. Wife and I were laughing about how our wee ones are probably going to need therapy for what most parents would call child services on us for. the word no.
121. Typical response from ChiFig – K
Chifi prolly got mommy and daddy to pay the full tab on anything he’s needed including downpayments as i recall. Silver spoon in mouth.
[84] essex,
Roe. v. Wade was a judicial decision so it cannot be repealed. It can be overturned, in which case the court would find that there is no federally protected right when it comes to ab0rtion and that it comes under the purview of the states.
Contrary to some uninformed views, overturning Roe would not make abortion illegal; it would permit states to make it illegal though.
Did not intend to get OT but just wanted to clarify.
Only one word to explain the just completed 10 year reopening auction. WTF!!! While the 10 year When Issued was trading at 1.516% at 1pm, when the release hit of the final High Yield on the bond, jaws dropped, as it came at a shocking 1.459%, nearly 6 bps inside of the WI, a record, a yield which also was a record, a Bid To Cover of 3.61 which was the second highest ever, second only to the 3.72 in April 2010, but it was the internals that were the most jarring of all. Unlike all recent auctions in the past 4 years, the Primary Dealer take down was only 14% a record low in recent years, and a hit rate of 6.8%, another record low. The offset: Directs, which took down a whopping 45.4%, another record, after tendering a record $16.9 billion in bids. All in all there was no definitive reason to explain why this auction was so very, very off the charts, and so mispriced by the secondary market, suffice to say WTF, and that this is what happens when there continues to be just one game in town: frontrun the Fed! Three possibilities: i) either someone was caught massively wrong-footed going into the auction and covered a massive short into the primary market, ii) capital reallocation from European money market funds which as we explained last week are now all dead, or iii) some “Direct” entity somewhere, has a gaping need for good collateral and would literally pay anything for US paper ahead of an even bigger margin call. If the latter, we will find out very soon.
http://www.zerohedge.com/news/10-year-bond-smashes-all-records-wtf-auction
[105] shore,
In Tax Policy, I argued that, at the irreducible subatomic nut, progressive tax policy came down to a view that “you take from them what gots it” meaning that you looked to see who had cash left over and you taxed them more heavily because they could “afford it”, which is the essence of Marginal Utility.
Of course, this was the same rationale used by Willie Sutton.
And until recently, I did not have a good quote but the OWS crowd provided it for me when they were trying to justify a forcible takeover of the Trinity Church: “We need more, you have more.”
http://www.nytimes.com/2011/12/17/nyregion/church-that-aided-wall-st-protesters-is-now-their-target.html?pagewanted=1&_r=2&partner=rss&emc=rss
SX [104, 110, 111];
Should be very close in Nov.
my gut tells me they won’t turn out this time.
America could use some new blood in the White House.
Wow. Good morning, SX. Have a cup of the coffee you’ve smelled. If this is what you are saying, Mitt is going to roll through the battlegrounds — VA, NC, OH, FL, even NJ, PA, MI all in play — its far worse for his O-ness than the public is led to believe.
Not unexpected, but now formal:
http://www.forbes.com/sites/halahtouryalai/2012/07/11/peregrine-files-for-bankruptcy-after-215m-goes-missing-where-were-the-regulators/
[121] pain,
Bet you did not know that DYFS can investigate you, and possibly bring an action against you, for virtually anything that it considers detrimental to Graydon and Ellery’s health or even their happiness. Read the statute, it’s so vague that the only thing keeping it from being unconstitutional is that it isn’t considered a criminal statute.
So, in theory, DYFS can investigate you and take away your kids for saying no, you can’t have a pony. (yes, I know this doesn’t happen and that such an action would likely be arbitrary, capricious and an abuse of discretion, but in theory, it is possible).
[127] moose,
I am not that sanguine about Mitt’s chances. What he needs is a downturn in the economy that can’t be blamed on Europe. He may get it, he may not.
Peace out, gotta prep for a showing.
[128] Such idiots in journalism these days. From the article:
“If that’s the case then it would appear that regulators may have got this one right, and perhaps prevented much more than $215 million from going missing.”
It has already been widely reported that the forging documents for years saying customer accounts at US Bank were in the neighborhood of $210-$220 million while actual deposits were pretty constant at $5-$10 million all that time. The theft happened years ago so, no, I wouldn’t say that “regulators may have got this one right.”
grim (15)-
Nobody will buy Whitney’s house because there’s meth permeating the walls.
[131] According to the author’s FB page: http://www.facebook.com/htouryalai ,
Studied English Language and Literature at Pace University. She seems to have a nice rack, so that should keep her banging paychecks at Forbes, amongst other things.
Personally i like Mitt as i liked Bush, just gotta hope he gets the right folks whispering in his ear. Not sure Obama has “earned” another term.
http://blogs.forbes.com/people/halahtouryalai/
About Me
I’m a reporter on the Investments and Wall Street beat. Before joining Forbes, I wrote about everything (Seriously-everything) related to financial advisors for a trade pub called Registered Rep. I find Wall Street fascinating. It employs some of the smartest individuals in the workforce who manage trillions of dollars on behalf of others. Sometimes they are successful and other times they fail miserably-and bring the rest of the world down with them.
What i don’t like are watching the gubmint fail which i have seen too much of lately. It’s pointless to have a polarizing leader in charge who can’t make deals or make a decision.
chi (98)-
You and I should swindle some of these dolts, take the proceeds and get our families the fcuk out of this Third World bunghole.
It’s all going up in flames. Soon.
“[113] JJ – I’m confused. Would O be doing the driving or would he just be watching Romney doing the driving?”
If Romney was driving, O would probably be left on the roof.
seif (103)-
I generally do not cheer for people who have declared open war on me and my family. If I am unlucky enough to be around when the shooting starts, nothing would please me more than to get as many Lee Harvey-quality opportunities as possible.
“Nobody will buy Whitney’s house because there’s meth permeating the walls.”
I see that as an incentive.
sx (111)-
New blood? How about a good, old-fashioned bloodletting?
I am an anarchist. I am the Antichrist.
NJ can borrow so cheap, why are there no tax cuts. This new issue for instance is replacing bonds at 5%. In this case since coupon is high 4, the bonds yet issued at 115. Meaning. ballpark if NJ is refinancing 100 Million bonds at 5% they replace that with 85 million bonds at 4% pocketing a 15 million gain while reducing interest expense 20%.
Where does all that savings go?
Participate OCEAN CNTY N J GO REF BDS SER. 2012 04.00000% 08/01/2024 4.000 08/01/2024 AAA — AAA — 115.164 2.320
Nom unfortunately I do, had friends go through the whole rigamarole because a local school board did not want to spend dough on their child with special needs so they reported them on some BS charge. Nearly broke my friends mentally. funny enough dyfs ended siding with them and now the town is having to pay double their original cost of schooling the child.
so I guess for 1 out of 10 cases the parents come out OK
Outsource Public Education to India and have the military take the kids over annually with LiftMaster Planes. That should reign in School Property Taxes significantly. Conversely insource Chinese to perform Police, Fire, State & Minicipal Functions which should reduce City & County Property Tax and State Income Tax. At Federal level outsouce IRS to China as the extra costs associated with them administering Obamacare domestically will bankrupt the US. Imagine just requiring everyone annually to prove to the IRS that they have Medical coverage. It’s insane.
There are too many special needs kids. Sure handicapped kids, down etc. I am ok with but every little brat with ADD and AHDD etc, they just need a good belt on a bare butt to fix their wagon, stop wasting my money
Painhrtz – Yossarian says:
July 11, 2012 at 2:21 pm
Nom unfortunately I do, had friends go through the whole rigamarole because a local school board did not want to spend dough on their child with special needs so they reported them on some BS charge. Nearly broke my friends mentally. funny enough dyfs ended siding with them and now the town is having to pay double their original cost of schooling the child.
so I guess for 1 out of 10 cases the parents come out OK
Or we could just carpet bomb all of Asia and the Middle East back to the dark ages and then send all our sick, unemployed, welfare people and prisioners as well as anyone on a reality TV show on one way tickets over there to re-populate.
I love the smell of Napalm in the morning, it smells like Victory.
Confused in NJ says:
July 11, 2012 at 2:29 pm
Outsource Public Education to India and have the military take the kids over annually with LiftMaster Planes. That should reign in School Property Taxes significantly. Conversely insource Chinese to perform Police, Fire, State & Minicipal Functions which should reduce City & County Property Tax and State Income Tax. At Federal level outsouce IRS to China as the extra costs associated with them administering Obamacare domestically will bankrupt the US. Imagine just requiring everyone annually to prove to the IRS that they have Medical coverage. It’s insane.
This is going to get a bit ugly. While Montclair has made a big effort in the last 2 years to purge non-resident black and brown kids out of the school system, it turns out a white $100k/yr assistant principal has lived in Little Falls since 1994 but managed to send her kids to the MPS since the home on Long Hill Rd has an Upper Mountain Ave/Upper Montclair mailing address. You’d think the BOE would have a database of valid addresses on the Montclair tax rolls. Wonder who looked the other way to allow it to happen. Someone dropped a dime to the BOE and the press this week.
http://www.northjersey.com/news/162025865_District_eyes_administrator_s_residency_claim.html?page=all
148. But she’s “Google Certified” by golly.
I guess that means she can catch Marissa Mayer’s fragrant queefs between her teef.
“We need more, you have more.”
At least that is an honest statement. BO and so many other liberals try to couch it in terms that make it seem like it is the natural outcome of a fair tax system.
Whether BO gets kicked to the curb in November or gets to leave on his own accord in January of ’16, who here thinks he will be as quiet as Bush has been?
“Where does all that savings go? ”
Well, duh, more spending. If borrowing costs go down, they don’t have to cut the budget. With your economic thinking, JJ, you will never be an elected official.
Time to go look at Nom’s house and lowball him. Enjoy the afternoon folks.
I heard Montklair’s coat of arms says “some animals are more equal than others”.
Watch those soci@list hypocrites try to sweep that residency thing under the rug.
They will. They’ll somehow claim she didn’t know.
who names their kid after Body Odor anyhow.
http://mrctv.org/node/114817
Brian,
Here is Krugman being put in his place. Now only if Dean Baker was there to get schooled as well… (dare to dream).
(159)
Actually, that is only part of it… but good stuff.
joyce – Second time i have seen that video, Imagine your whole life’s work has been a sham and the only way you to ensure the charade is perpetuated is to continue the lie. you can actually see the point in the video when old Krugy realizes the gig is up,
Though part of me wishes he had a stroke and just died.
161
Pain,
I can’t imagine telling lie after lie my whole life (Krugman, Bernanke, politicians, etc). It’s quite amazing and shocking.
But then again, I’m not a sociopath.
Yo 20,
Are you serious?!
Let’s disspell the fallacy of your theory: you’d be buying the SAME house, which would cost 40% more due to the artificially low interest rates compared to the SAME house when the rates were at 6%. As such, that property WON’T SELL at the 40% price increase. Mr/Mrs Seller will have to give up some of their paper profits, as will Mr/Mrs Greedy Realtor who thinks he/she is entitled to a full commission for doing…nothing. Just b/c the cash flow requirement to the buyer is the same doesn’t warrant the price increase in this miserable economy and RE mkt.
If you were serious, then it’s thinking like yours that got the fools into the trouble they’re in.
Cheap Chuck
Pile on Krugman day.
http://www.huffingtonpost.com/2012/07/11/paul-krugman-cnbc_n_1664771.html
the death of Keynsism will need a body looks like Krugman has been tabbed by the Illuminati to catch the bullet
Best comment on that Krugman article isexaclty why I think the Great Panderer will get re-elected is listed below
We haven’t even tried Krugman’s ideas! We’ve been practicing austerity! Cutting spending, public sector jobs, not raising taxes on the mega-rich, etc.
Here’s what we need to do as a start. Invest in the decaying infrastructure of America’s highways and crumbling bridges. Put construction workers back to work. Invest in our public schools that are falling apart. Hire public sector employees. Cut taxes on people making less than $250k. Raise them on everyone else.
Once the economy is back to moving, then you address the deficit. Austerity is the most bass ackwards policy ever invented. If everyone pulls back on spending, so does everyone’s income. It’s a self-defeating cycle. Basically, if everyone was Amish (most extreme austerity possible), this whole house of cards that we call an economy falls apart quicker than a church mouse fart.
My god what a moron
What the h3ll are you talking about?I will put it in a simpler term:
If you’re rent cost today is $1800 a month,you can buy a house for the same monthly fee of $1800 a month: At 6% interest rate is a loan of $300,000 which is about $360,000 dollar house with less than 20% down
And at 3% your $1800 can get a loan amount of $430,000 which is about $516,000 dollar house with less than 20% down.
http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx
Cheap Chuck says:
July 11, 2012 at 4:32 pm
Yo 20,
Are you serious?!
Let’s disspell the fallacy of your theory: you’d be buying the SAME house, which would cost 40% more due to the artificially low interest rates compared to the SAME house when the rates were at 6%. As such, that property WON’T SELL at the 40% price increase. Mr/Mrs Seller will have to give up some of their paper profits, as will Mr/Mrs Greedy Realtor who thinks he/she is entitled to a full commission for doing…nothing. Just b/c the cash flow requirement to the buyer is the same doesn’t warrant the price increase in this miserable economy and RE mkt.
If you were serious, then it’s thinking like yours that got the fools into the trouble they’re in.
Cheap Chuck
It has nothing to do with home prices going up.At 3% you can shop for more house than on 6%
Your $1800/month buying power just increase over 40%
$1800/month= 6% can only loan you $300K
$1800/month = 3% can loan you $430K
Okay, three showings since this time yesterday and no offer. I’m insulted! ;-o
[164] juice,
His efflusive praise of Sweden tells you all you need to know.
BTW, the Swedish founder of IKEA became an expat to avoid Swedish taxes.
no offer from shore?
Comrade Nom Deplume says:
Shore Guy says:
July 11, 2012 at 3:14 pm
Time to go look at Nom’s house and lowball him. Enjoy the afternoon folks.
July 11, 2012 at 5:42 pm
Okay, three showings since this time yesterday and no offer. I’m insulted! ;-o
yo,
Is your position that the ability to take on greater leverage now in the short term at a similar monthly cost as compared to the recent past a benefit that will be “bullish” for the housing market/prices?
I will look at my financial stability foremost after that, if I can take more leverage that will be of my beneficiary in the future,yes.As per being bullish for the housing market,we got here because of over leverage due to easy credit which lead to the bubble.If being bullish is letting the market price itself due to actual demand and not speculators,yes
joyce says:
July 11, 2012 at 6:06 pm
yo,
Is your position that the ability to take on greater leverage now in the short term at a similar monthly cost as compared to the recent past a benefit that will be “bullish” for the housing market/prices?
I agree the bubble was caused by too much leverage due to easy credit (and fraud).
Even you, above, referred to the times now being “almost free of interest for 30 years.”
How is that not easy credit?
While interest rates in this country are always at least slightly manipulated (via Federal Reserve System), currently the amount of rate manipulation or outright fraud (Libor) is unprecedented. Anyone claiming that the “market” is setting prices right now is laughable. Interest Rates, or the cost of money, is also a price… and has been integral in the housing market for several decades.
I needed a 800 FICO score,checked all outstanding balance and income to get a 3% 15 year.
Joyce says;
How is that not easy credit?
When Bank of America Corp. sent letters to 60,000 struggling homeowners offering to slice an average $150,000 off their loans, the lender got an unusual response from most of them: silence.
Homeowners who fell behind on their payments began receiving the mailings in May, part of the bank’s effort to meet terms of the $25 billion industry settlement over foreclosure abuses. More than half haven’t responded as “borrower fatigue” causes them to tune out the offers, said Dan Frahm, a spokesman for the Charlotte, North Carolina-based bank
http://www.bloomberg.com/news/2012-07-11/bofa-give-away-has-few-takers-among-homeowners-mortgages.html
-The government’s programs is having underwater homes refinance.
-FHA allows first time homebuyers to put down as little as 3.5% and receive up to 6% towards closing costs.
-The FED is keeping interest rates at 0% for the .gov. and banks.
You think the “market” is pricing money @ 3% for 15 years? Ask JJ is he’d buy that bond.
Yo –
I’m a little confused with your reasoning. You only look at one component => P+I
1. you keep leaving out prop. taxes.
Modest, middle of the road houses have property taxes of 12M – 18M in Essex. – so your $1800 rent = $1800 to own is not right because you have to add in at least $1000 per month taxes (plus insurance and maintenance)
2. Also, 30yr. mortgage – no points – is around 3.875 – 4.00 conforming – not 3%
15 yr. is around 2.875 to around 3%
I’m currently looking to buy. I see many middle of the road houses with prop. taxes in the 18K area. I need a huge discount to sign up for that burden.
.
“……..If you’re rent cost today is $1800 a month,you can buy a house for the same monthly fee of $1800 a month: At 6% interest rate is a loan of $300,000 which is about $360,000 dollar house with less than 20% down
And at 3% your $1800 can get a loan amount of $430,000 which is about $516,000 dollar house with less than 20% down…….”
#179.. I live in Essex County, have a 1,900 square foot expanded range with new kitchen and new MBR suite and 400 sq foot deck and quarter acre level lot on a dead end street, my taxes will be $8,200 for 2013..or less than $700 a month. Just because you can pay $12,000 or $18,000 for a house, you do not need to live in west Orange, Montclair, Maplewood, etc.
joyce (162)-
Once you realize the depth of the pathology, you immediately understand that bullets are the only thing that will stop people like this from destroying everything they touch.
Krugman = Goebbels
181
Meat,
You are correct. What also amazes me is just why does Krugman do it? I guess he has a comfortable life, but he’s not rich is he? He doesn’t wield any power. He’s just a shill; he has to know if the SHTF he won’t be protected by TPTB.
Krugman is a professor at Princeton I believe.
#180- Condo Buyer
which town? maybe I’ll look there.
184
And?
tcm come up to Sussex I’ll get you taxes under 7K for sure!
No wisecracks Meat.
#103 – seif –
“people like to root….” is an awful reason for voting for a candidate. We should keep our rooting instincts confined to sports and other things that don’t really matter . Your example of Bonds – your friends think he’s a criminal etc. but still root for him. It’s okay because he’s on their team – it’s all emotional – it’s just a game. But would they love him if his cheating had a direct effect on their lives? Would they blindly love him even while he was destroying their future? If yes, you have idiots for friends.
It’s not you vs. me. Who ever wins is president for both of us. You may vote for Obama or Romney and feel like you “won” if “your guy” wins – but if he stinks , we BOTH lost – it’s just that one of us knows it, and one of us doesn’t.
Unfortunately, we’re in this together.
seif says:
July 11, 2012 at 12:10 pm
97 – you assume that all these “suckers” don’t know both sides are criminal – that is YOUR issue; i think this is a bad assumption. people like to root: my friends who are SF Giant fans undeniably thought that Bonds was a blatant cheater, criminal, whatever…but they still went nuts every time he hit one out of the park for their team. thats just the way it is.
Joyce an academic from Princeton, need he say more.
Academics in general tend to lean toward a theoretical myopia.
#187 –
I’d love to get away from here, but unfortunately I need an okay commute.
As it is, in my train town, the commute is hellish half the time for my spouse.
On a perfect day, it’s an hour – but there’s so many days with issues. If it rains there’s delays from wet leaves on the tracks! – really?
The only thing reliable about NJTransit is that they are unreliable. You’d think with that huge rate jump there would be a little improvement.
I found that any train town that has sort of reasonable taxes has significantly higher house prices, and towns with wildly absurd taxes have much lower prices. So I have to choose my poison.
touché
No need to Sussex for those property taxes. We will be buying in Morris County with an approx. 4K tax bill and price under 200K.
Total PITI is $1300 a month. Rent for a 1 bedroom apartment $1000-$1200 for something with out infestation. 1600+ for a 2 Bedroom.
AHB [193];
Dover?
AHB [193];
Victory Gardens?
My dad went to Princeton, and he was able to exercise common sense and do things of real value for the rest of his life (he was a philosophy major, yet spent his early adulthood doing things like selling FM radio frequencies and promoting rodeos). A few years before he passed, he spent a good deal of time trying to figure out how Princeton- and all the Ivies- morphed into giant circle jerks of collectivist thought. Never could figure it out.
very interesting subject , appreciate it for putting up.
I am simply pointing out,with the low interest rates your dollar gained much buying power on top of recent price decline.You are a sensible person.You should know how much you can afford to pay for a house.If that will ever happen.
tcm says,
1. you keep leaving out prop. taxes.
Modest, middle of the road houses have property taxes of 12M – 18M in Essex. – so your $1800 rent = $1800 to own is not right because you have to add in at least $1000 per month taxes (plus insurance and maintenance)
Joyce,
European style austerity vs American style middle keynesian will be tested.I say middle Keynesian because we did not go into extreme austerity.The Fed guaranteed our debt.They bought debt.Investors know they will be paid.Spending has been down but not extreme austerity.They waited until the dust settles before dealing with higher taxes ang austerity measures.Spain will have too much pain that what they are doing will tail spin more their economy.Where will revenue come from?Tax more the people that are not making money.How much more can you give when you are unemployed? A big test of keynesian vs austerity
#185, check Cedar Grove, Little Falls (can still get to Boonton line from both, NJT bus to PA from Willowbrook too)). If you need fancy-shmanzy, you will pay $10k + on taxes though, but I grew up in a 1950’s ranch and the equivalent works for me…plus poured concrete foundations and late 1950’s construction, pretty solid!
196. The apple didn’t fall far from the tree.
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