From the APP:
NJ leads nation in share of distressed mortgages
It’s been six years since the housing bubble collapsed, but foreclosures still weigh on New Jersey’s real estate market, according to a report released Wednesday.
The state’s share of distressed mortgages, the highest in the nation, is the main reason its housing prices have failed to keep pace with the nation, said Patrick J. O’Keefe, the report’s author and director of economic research for CohnReznick, an accounting firm.
“I don’t think there’s anything in the data to suggest things are getting worse,” O’Keefe said. “What we can say is they are not improving as rapidly, all things being equal, as they should be.”
The report provided more evidence that New Jersey’s economy is recovering from the recession more slowly than the rest of the nation.
The housing market has been trying to regain its footing after homeowners in 2007 began defaulting on loans they couldn’t afford, sparking a global financial crisis that saw the U.S. bail out banks, the unemployment rate soar and New Jersey home prices tumble more than 20 percent.
New Jersey’s housing market has stabilized, thanks in part to record-low mortgage rates. Real estate agents at the Shore talk about the lack of inventory. But the state’s foreclosure rate has remained persistently higher than the rest of the nation.
…
The report found New Jersey is chipping away at its foreclosure rate; 7.9 percent of mortgages were in foreclosure at the end of 2013, down from 9 percent at its peak in the first quarter of the year.Still, at the end of the year the state had the nation’s highest share of distressed mortgages — loans that were 90 days late or in foreclosure — 11.8 percent. And the state ranked 40th nationwide in annual housing appreciation.
New Jersey home prices have increased 3.6 percent since they bottomed out during the first quarter of 2012, but remain 17.7 percent below their peak in 2006.
By comparison, home prices nationwide have risen 14.5 percent since they hit bottom in the middle of 2011, but remain 8.9 percent below their 2006 peak, O’Keefe said.
One real estate agent said the state’s high foreclosure rate still amounted to a relatively small portion of the overall market, and it hasn’t had a big impact on sales of single-family homes.
Delinquents!
all the time ignoring that you got killed in interest, carrying costs, and maintenance along the way. I’m guessing most people are really this stupid. and fat.
But is the alternative that you’ve got the investing prowess of JJ and still live at home with your mom?
Grim had a dream about a new mortgage product last night, and now this morning I’m wishing it actually existed (much like that dream about me and Christie Brinkley).
Positive amortization loan – Accelerated paydown
Fixed-rate – 30 year term
Monthly payment set to the standard 30 year amortization
Overpays applied to principal
On the anniversary date, each year, the mortgage will recast based on the new principal amount. So overpayments in year 1 result in a lower mortgage payment in year 2, term stays the same.
If you don’t overpay, you never pay more than the quoted amount. But overpayments are “rewarded” by lowering payments into the future. Obviously, it will take significant overpayments in a short term to move the needle, but smaller payments over a few years would have a similar effect.
Benefit to lenders is that this would potentially eliminate some prepayment, or allow prepayment to be more effectively managed.
Thoughts? I’m going to head up to Goldman this afternoon to pitch it to the security guard.
what’s the profict differential for the lender by allowing yearly readjustments assuming tenor and rrate remain fixed?
“On the anniversary date, each year, the mortgage will recast based on the new principal amount. So overpayments in year 1 result in a lower mortgage payment in year 2, term stays the same.”
Still, at the end of the year the state had the nation’s highest share of distressed mortgages…
Distressed includes the ones you can’t measure; the ones that are hanging on with two household incomes and no 401K distributions while maintaining the life style appearance. That number is staggering.
“New Jersey home prices have increased 3.6 percent since they bottomed out during the first quarter of 2012, but remain 17.7 percent below their peak in 2006.”
Fast,
And show me where this stat has been applied by current paint sniffers. Read again, you should be priced almost 20% below 2006 price. Even if you bought in 1998, your neighbor sold in 2006. If your houses are comparable then my offer starts 20% below their purchase price, not at your opiate induced fantasy price.
Eddie,
Just think how many more would be coming to market if what Joyce wanted came true….
joyce says:
February 26, 2014 at 4:19 pm
Yes
Yes
Yes
and so much more. Anything else I can answer?
anon (the good one) says:
February 26, 2014 at 4:15 pm
where you wanna cut?
The army?
Medicare?
Social Security?
Can I ask you guys a favor? I am on this website called Nerd Wallet….they ask people to answer financial questions. If you think I did a good job answering a question in an objective and constructive way, can you endorse my answer? Only do it if you think it is warranted…..
re # 8 – You are just asking to be trolled with Dave Gahan references.
Interesting product Grim, but it would appeal to an extremely limited audience. I think it would surprise you if it was revealed how few of the populace actually make extra payments to principle. And with the recasting, how much lower would the new fixed rate be? Would you essentially go to the 5-year thresholds? For example, once you overpay enough to lower the loan from a 30-year to a 25-year, would you recast at the original 25 year rate or the current 25 year rate? If rates go up, banks wouldn’t want to give up more than they originally were scheduled to receive in interest. If new 25-year rate was at a lower rate than original 25-year rate, banks would lose way too much as not only do they lose original expected interest, buy they lose potential refinance fees as well.
I see your product not working because it is too attractive to the borrower and has limited appeal any way. Plus the competition would match the product so no bank has an advantage. Though it is an interesting concept. If anything, you might want to suggest a mortgage that provides a financial incentive to the borrower to extend the loan longer. That’s what GS really wants. Like ten year car loans for example. Wow, you can drive that Hyundai for $50 per month.
http://www.youtube.com/watch?v=emmoJvpSGyw
If anyone wants to watch the above 18-minute video, it’s about two texas cops in a rural town who give 2 bogus tickets to a guy, threaten him, etc… he then goes to pre-trial where the prosecutor tries to invent a reason to arrest him, talk to judge and police chief… charges are eventually dismissed. But the conversation between the prosecutor in the middle-ish of the video and the very end are PRICELESS. in my humble opinion of course
#8 Chi
You are too emotional to be considered objective.
Brady Campaign
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Funny more discussions with recruiters. Lots of positions but pay is downright horsesh*t. It seems like banks want to roll-back pay 10 years. 650-700/day for 10+ years PM experience? That was 2002. It seems like IBs are still asking for bottom prices. The ones are not? Homesellers, local tax office, food, energy, NJT, PABT, MTA..how long can this continue? Something has to give..
Bystander,
I’m curious, what would the base salary be for an equivalent amount of money if that was a full-time position? I’m already not sure if I phrased that correctly. 650-700/day is about 170,000/year based on 250 days…. would that be like 120,000+ benefits+ some kind of year-end bonus?
Grim [3];
I don’t see the upside to the lender. They want to keep as much money out for as long as possible (provided payments are current) at the highest rates possible. Re: rates, if they get a payoff in a low rate environment (like a rate/term refi), they take their lumps and move on. But what is the bank’s incentive to recast my 3% note in a 4% environment?
Also, I think NOT recasting the payment discourages early payoff since people still have to make the same nut every month. They don’t appreciate the long-term value that they only get to realize some 20-odd years from now.
You want to talk about a new mortgage feature that benefits the borrower and the bank — I’m wondering why the lender insists on a payoff of my note at par, when it might be in their interest to price my note to market. I’m making payments on a 3% note in a 4% environment. If my bond was to trade, it would trade at a discount, just because of prevailing rates. So why must I pay face value to settle the note? I’m not talking about a distress discount, just simple everyday supply and demand — a 3% note in a 4% (or higher) environment. Why can’t I as the borrower get the benefit of that discount? For the lender, it frees up capital to redeploy at higher rates. Win-win, right?
Bystander [14];
I wonder if that’s why the R’s were making noise about comprehensive immigration reform. Just saying…
Wow, what’s next, replacing nfl players with players that will only play for 2 year rookie contracts, in the name of saving money? This can’t end well. Life just keeps getting worst. There will be no such thing as a good job in the future for my daughter. There will only be slave labor type options, all in the name of saving money by the current generation in power. The baby boomer generation and the generation before it, made out like bandits at the expense of the current and future generations. I seriously doubt that there will be such thing as a “good job” in 20 years. Retirement? In 20 years they will say, what is that?
http://www.salon.com/2014/01/13/teach_for_americas_pro_corporate_union_busting_agenda_partner/
joyce: you are a social misanthrope; you look at things as form over substance; the behavior profiled by the defendant is legal and constitutional, but the guy deserves whatever happened to him…….you go looking for trouble, you will certainly find it…….and he made a minor, who is unable to consent, a party to his infantile tantrum…..
joyce says:
February 27, 2014 at 11:28 am
http://www.youtube.com/watch?v=emmoJvpSGyw
If anyone wants to watch the above 18-minute video, it’s about two texas cops in a rural town who give 2 bogus tickets to a guy, threaten him, etc… he then goes to pre-trial where the prosecutor tries to invent a reason to arrest him, talk to judge and police chief… charges are eventually dismissed. But the conversation between the prosecutor in the middle-ish of the video and the very end are PRICELESS. in my humble opinion of course
http://nypost.com/2014/02/26/company-matches-city-dwellers-with-their-ideal-burb/
Notice the NJ Transit delays mentioned in the article about Glen Ridge.
Ad hominem attack. I specifically suggested critiques of my answers, not me. Touche…..
Fabius Maximus says:
February 27, 2014 at 11:36 am
#8 Chi You are too emotional to be considered objective.
chicagofinance says:
February 27, 2014 at 10:22 am
Can I ask you guys a favor? I am on this website called Nerd Wallet….they ask people to answer financial questions. If you think I did a good job answering a question in an objective and constructive way, can you endorse my answer? Only do it if you think it is warranted…..
Chi…your answers are similar to the advice I would have given. When can I work for you?
I would have given you some thumbs up, but I have to create an account first? What a hassle. I’ll do it later if I have time.
I never really understood how true this was about people until you made the point one day Chicagofinance.
You know you’ve won an argument when they begin to mock you instead of presenting a point that contrasts yours…
21.chicagofinance says:
February 27, 2014 at 1:47 pm
Ad hominem attack. I specifically suggested critiques of my answers, not me. Touche…..
Fabius Maximus says:
February 27, 2014 at 11:36 am
#8 Chi You are too emotional to be considered objective.
Chifi [19];
the behavior profiled by the defendant is legal and constitutional, but the guy deserves whatever happened to him.
That’s an interesting juxtaposition, Chifi, and one I tend to agree with. I remember among the wailing and gnashing of teeth after Columbine, the news would often show teenagers (girls, usually) crying “Why did this have to happen here?” Why, honey? Because you and your friends taunted those kids mercilessly for years. Does that mean you deserved what they did to you? No. But, that’s not what you asked, you asked why did it happen there — and that is your answer: It’s you.
BTW, a link to your question/answer might help.
Grim #3, the USA has strict rules for mortgages, which helps the securitized market but makes it harder to come up with innovative products. I think most other countries have much more flexible mortgages, though without the govt backed securitization market they dont have fixed 30y rates. Presumably you could do what you want with a regular mortgage + a HELOC, then refinance down the road.
I know in the UK offset mortgages are common http://www.woolwich.co.uk/mortgages/offset-mortgages.html, which effectively will do most of what you want. Looking in USA now, at least Citi has the same thing https://offset.citimortgage.com/
I guess you build the case that I should back off FlabMax & joyce…..
Anon E. Moose says:
Does that mean you deserved what they did to you? No. But, that’s not what you asked, you asked why did it happen there — and that is your answer: It’s you.
Wow, that was JJ like speed… only took 5 minutes for you to show hypocrisy
chicagofinance says:
February 27, 2014 at 1:42 pm
joyce: you are a social misanthrope
chicagofinance says:
February 27, 2014 at 1:47 pm
Ad hominem attack. I specifically suggested critiques of my answers, not me. Touche…..
Fabius Maximus says:
February 27, 2014 at 11:36 am
#8 Chi You are too emotional to be considered objective.
OK reading this website, Citi effectively pays you interest (at the mortgage rate) on the savings account, instead of reducing mortgage rate charged, which defeats the half the point really. Maybe in the USA offset doesn’t make as much sense if interest is tax deductible anyway.
http://www.interest.com/mortgage/advice/citibank-program-helps-pay-down-your-mortgage-faster/
Michael [18];
Retirement? In 20 years they will say, what is that?
Just like they did before the baby-boomers coined (and lived) “The American Dream”. More support for my theory that the real adversaries in society are generational, and why the Baby Boomers deserve to be called “The Locust Generation“.
The whole thing started cause the guy said he didn’t want his car searched. I know, what an @sshole. I bet the guy in Bloomfield should have just acquiesced too, right? I will remind you again, and others on here who’ve discussed similar things with me, when it comes to the law… form = substance. process = substance.
chicagofinance says:
February 27, 2014 at 1:42 pm
joyce: you are a social misanthrope; you look at things as form over substance; the behavior profiled by the defendant is legal and constitutional, but the guy deserves whatever happened to him…….you go looking for trouble, you will certainly find it…….and he made a minor, who is unable to consent, a party to his infantile tantrum…..
Screw Tesla. I want an MRAP.
http://www.bloomberg.com/video/army-gives-out-500-000-armored-trucks-for-free-yNTShDoVRe2reQ3G3Raqrg.html
JuiceBox,
” U.S. law enforcement agencies have received the lion’s share of this high-powered military surplus.”
And the rest went where eactly, ha
Moose- That’s a brilliant way of describing the Baby Boomers generation. Pure genius, my friend!! Nothing for nothing, your theory might be fact!
“Just like they did before the baby-boomers coined (and lived) “The American Dream”. More support for my theory that the real adversaries in society are generational, and why the Baby Boomers deserve to be called “The Locust Generation“.”
#15 Joyce,
Depends but 700/day is anywhere from 85k to 105k FT equivalent. There are a lot of dependences on final income depending on whether Corp to Corp, 1099, W2 and business writeoffs but this also fails to take into account many other FT perks like education reimbursement, FSA, commute benfits, profit share etc.
$168,000.00 Yearly Gross 700/per day
-15,600.00 Private Health Insurance
-7,000.00 2 weeks vacation (non-paid)
-7,000.00 10 US Holidays (non-paid)
-10,080.00 401k match
Now factor in Miscellaneous
-7,000.00 2 weeks forced time off (some companies enforce end of year)
-3,500.00 Sick or snow days (consultants have no remote acc
-25,000 15% bonus
Vigoda > Jim Lange
Thanks, Bystander.
#17 moose,
I have not looked at Rethug platform on immigration but unless it includes slashing H1 visa program then it helps me not. H1 program allows Indians engineers into country who then get MBAs and work in finance acctg, operations, etc. Nothing personal against them but how is this fair? I thought we needed more engineers? Also it does account for even state distribution. Most H1 end up in Edison not Iowa bc they want finance jobs. It suppresses wages plain and simple. These people are desperate to keep employment which is what WS loves. Greenspan had the audacity to claim we need to double it. Wish that old f*ck would croak already.
#21 Chi
The objective response would be along the lines of “while I am emotional on issues it in no way affects my objectivity”, but you went the other way and that illustrates my point. It is not an ad hominem attack as the character trait ( your objectivity) is the point of the discussion.
Here’s an example of the point I’m making. “Given that Chrysler are going to introduce more Fiat models into the north America, are Fiat ADRs worth buying?”. Now given all the anti-European rants you have gone on in here. How objective do I think you’ll be in your answer?
Bystander [37];
You said “something has to give” on the labor front. My comment was no stroke to R’s, but a slam. They started talking ‘immigration reform’ (read as, ignore the illegals who are here, and let more in) as a sop to the ‘chamber of commerce’ wing of the R party who want the cheap labor, pure and simple. D’s just want the extra votes that they can buy off with cheap (read as, other people’s — yours and mine) money. The people aren’t electing the politicians so much as the politicians are selecting the people who will elect them.
“The people aren’t electing the politicians so much as the politicians are selecting the people who will elect them.”
Explain that to Anon!
re # 37 – Bystander – Who is hiring anyway? All these jobs are temp “just in time” contracts, and allot of these H-1B guys don’t stay in the US as residents.
I have one leaving the country to get married. There won’t be a job here for him at my place, you cannot expect to waltz on a contract for 8 weeks and expect to have a job when you get back. Speaking of getting back, all you need is a very easy doc to forge.
“A current letter of employment from your department on department letterhead verifying employment”
There is a bill in the Queue to expand H-1B to 300,000. I am pretty sure it will pass.
Bystander and moose, great posts today about the affect of immigration on our wages. Bottom line, in theory, immigration will only lead to downward pressure on our wages and society. People saying otherwise, are just taking advantage of cheap labor, and want to protect that advantage. We don’t have enough jobs as is, how can bringing more people to the equation be good for the common worker? Hate listening to people that say immigration is a good thing for our country. These idiots will say that they do the jobs that nobody wants, which is complete bs. It’s more like they do the jobs at a price that no sane American citizen would do. They take our finance jobs and do it for half the price, because they have not one once of self respect at maitaining the status que for wages. Instead, like an idiot, they do it for less, screwing the rest of the population, just because in the country they came from, that’s a lot of money. Then they live a couple years here, and realize why everyone hates them. Not only do you take my job, but you make all the people who’s job you didn’t take, work for less too. Now you know why people hate you?
Grim, can you unmod my post. No idea why it’s being blocked.
Never mind, it went through
Juice,
It is freakin carousel ride. Big wig gets hired to examine costs. He/she decides reduce bonuses, salary/hiring freezes then lops off 1/4 of staff in Sept to Nov. Another 1/4 of staff leave due to pay/morale. It freeze in Dec. so they get pat on back as year end looks good. Come Feb/March..oh no we are understaffed and huge multi-year projects on horizon. Hire consultants..hurry. Multiply this by 100s of financial companies..but wait big wig does not want to pay alot for consultants so make sure they come in through Beeline/VMS. This way we can make blanket cuts across all consultants and pay lowest rate
Mike,
I would not put words in my mouth about hatred of immigrants. My grandparent and mother are immigrants from Emerald isle. I don’t think unskilled HS drop-outs should have protection from competition. My problem is skilled labor competition like H1. There is no way MBAs/ CPAs with work experience should be umemployed or struggling to get by. Education was always the key to solid life in this country. I see lots of these people struggling to keep employed. Sorry something wrong with this in my book.
@ZoeSCarpenter: Nearing the pinnacle of depravity, Senate Republicans blocked a bill extending health care and education to veterans http://t.co/jwBmIDmLz9
Real Estate Guru :-)
http://sports.yahoo.com/blogs/nfl-shutdown-corner/highest-paid-retired-nfl-player-answer-likely-surprise-203235589–nfl.html
[19] “the behavior profiled by the defendant is legal and constitutional, but the guy deserves whatever happened to him…….you go looking for trouble, you will certainly find it”
Wow. Engaging in legal and constitutionally protected behavior makes you fair game for “whatever” some bully with a badge decides should happen to you? Objecting to an unlawful and unconstitutional search of your vehicle is “looking for trouble”?
“I remember among the wailing and gnashing of teeth after Columbine, the news would often show teenagers (girls, usually) crying ‘Why did this have to happen here?’ Why, honey? Because you and your friends taunted those kids mercilessly for years. Does that mean you deserved what they did to you? No. But, that’s not what you asked, you asked why did it happen there — and that is your answer: It’s you.”
Setting aside your incorrect recollection of taunting/bullying as the motivation for the Columbine shooting (see, e.g., http://www.slate.com/articles/news_and_politics/assessment/2004/04/the_depressive_and_the_psychopath.html), the notion that a police officer, armed and empowered by the citizens, should be expected to react with hostility in response to a citizen asserting the very rights police officers are sworn to protect (“I’m sorry, but I object to this search.”) is . . . doubleplusridiculous.
#11 joyce
What the prosecutor failed to mention, is that while the constitution may say that the cop should not have searched the car, that has been trumped by the reams and reams of case law on car searches that negate it.
I get where this guy is coming from, but he pushed a bad hand. While it my go against your ideals. If you get stopped, there is nothing stopping them pulling the car apart.
If the cop needs probable cause (I’ll have to look , but I recall there is case law that says he actually doesn’t), “I saw the wife stumble out of the drivers seat. I didn’t know if she was just tired or drunk. I searched the car for alcohol.”
50
I’d be very interested to find the any case law, let alone reams, that purportedly says someone’s car or person can be searched when there is no PC nor RS of criminal activity. And thanks for paying attention to the fact that this guy wasn’t “stopped” … he voluntarily pulled off the side of the road before any cops were around because he said he wanted to switch driving with his wife. The cops came up behind them after the fact to see what was going on.
You mention that a cop can lie. Well, thanks for that revelation. They do it all the time. And since the judge, prosecutor, and equally as unfortunately, most other people believe that cops are always telling the truth… they can get away with said lying over and over again. It’s a huge problem within the system.
It’s been six years since the housing bubble (partially) collapsed…
The majority of my favorite people are immigrants. Immigrants hired me for most of my life. Wrote the best novel ever. Married me. Cared for my child.
Human interaction isn’t zero sum until bad governance messes with it.