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Foreclosures Reach Record Levels Across Country

Discussion in 'Political Discussion' started by Terry Glenn is a cowgirl, Jun 15, 2007.

  1. Terry Glenn is a cowgirl

    Terry Glenn is a cowgirl Banned

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    In another sign that the housing market is taking a major tumble, Americans across the country are getting foreclosure notices at a record pace.

    New data released this afternoon indicates that one in every 656 homes in the United States went into foreclosure during May.

    Irvine, Calif.-based RealtyTrac says more than 176,000 people got foreclosure notices last month. That is the highest figure they have ever recorded in their monthly report and is 90 percent higher than the numbers from a year ago.

    "Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year," said James Saccacio, CEO of RealtyTrac, in a release accompanying the data.
    Experts say the boom in foreclosure was expected.

    Millions of Americans with poor or undocumented credit were given mortgage loans during the height of the housing bubble, and now that their adjustable rates are resetting higher, many face the prospect of losing their homes.
    Six of the nation's largest lenders who specialized in these high-risk borrowers filed for bankruptcy earlier this year after investors lost confidence in the $600 billion subprime market when default rates started to rise.
    For the past six months economists have been watching the mortgage market closely, attempting to gauge the impact of the shakeout in the subprime mortgage market.

    "The principal source of the slowdown in economic growth that began last spring has been the substantial correction in the housing market," said Fed Chairman Ben Bernanke in a speech in late March. Bernanke has said the downturn in the housing market has shaved 1 percent off the nation's overall economic growth in the past year.

    But the shakeout in the market is far from done.

    First American CoreLogic analyst Chris Cagan said he believes about 1.1 million Americans will lose their homes to foreclosure in the next seven years because they cannot pay the increasing monthly mortgage bills after a reset.
    Banks have started to tighten lending standards, making it harder for subprime borrowers to get a loan, but housing analysts say the damage has already been done. Several years of easy-to-get financing deals attracted many people into the market even though they would not have traditionally qualified for a home loan...

    http://abcnews.go.com/Business/IndustryInfo/story?id=3270561&CMP=OTC-RSSFeeds0312
     
  2. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    Heard this on the news, it translates to every self owned property in all of the New England States being foreclosed at once.. the other day I picked up the Pro Jo and there were 10 pages of legal notices for foreclosures.. I watch this stuff and the american dream of owning a home will be regulated to a select few.
     
  3. sdaniels7114

    sdaniels7114 Experienced Starter w/First Big Contract

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    The banks are finding out that even though they do have the house to fall back on, the value of the house is gutted if its one of millions thrust on the market suddenly. I hope they all pay dearly because this failed experiment of theirs is blowing up in my face too. I've been in and out of the flooring industry for 24 years now and I've never seen it this bad. All people in the construction/remodeling industry are hurting right now and its because of this.
     
  4. godef

    godef In the Starting Line-Up

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    ... and the rich get richer...

    That's what it all boils down to. Greedy CEOs being paid millions of dollars whether their companies are successful or not (banks included), raising the economic bar by investing these undeserved millions in real estate among other places, thus inflating the cost of homes, making it even more difficult for the common man to experience (what has now become) the American dream of owning a home, forcing them to turn to more exotic means of financing it.

    The Rebublicans have a favorite term they like to use... I believe it's "trickle down".
     
  5. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    The predatory lending that sent housing costs sky high is starting to have the opposite effect, pushing values down and, in effect, trapping people in their overpriced homes. If they can't pay the mortgage, they're screwed. Add to that the respected economists Samuelson and Pearlstein ran columns in the Washington Post expressing deep concerns about overinflated stock prices and rising interest rates.

    Since I think that economics is largely psychological, it's hard to say how things will actually play out, but it's clear there are some fundamental problems with our economy being masked by the huge deficit and the illusion that stock valuations that are linked to corporate profits.
     
  6. Real World

    Real World Moderator Staff Member

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    The hurt is dependent on your geographical location. Things around here (NE) are pretty bad right now for sure Sd7. We've (masonry) had a tough start so far this year. Calls are down dramatically from past years. The NE area was one of the first regions in the country to experience a dramatic rise in the cost of housing, and therefore is one of the first to feel the cyclical pain. The biggest problem with the housing bubble is subprime lenders. The vast majority of delinquent borrowers are subprimers. My buddy worked in that field for one of the major SP's and quit after 6 months because of how unethical the practice was. He would tell me every night about how workers there were screwing naive borrowers into higher rate, 2nd mortgages, or overreporting income so as to secure a higher limit of financing. Well, when you combine such practices to the overall stupidity of today's average citizen, you get a failing market. My personal favorite, which I predicted would end up this way, was the no interest mortgage. Only a fool would sign on for one of those puppies in a dicy market with rising mortgage rates. All of those fools are now at that 3rd+ year where they need to refi, and cannot make their payments now that they've become real. Worse is they have zero, or negative equity to boot. This stuff is cyclical and that fact will never change. What amazes me is all the tardo's who opt to buy in a fragile, and volatile market. Being 32, I've had 6-7 friends get married over the last couple of years, and almost all have bought houses. I told them not to, or to buy within their needs, but virtually all of them didn't listen, and now they are paying the price.
     
  7. Real World

    Real World Moderator Staff Member

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    Yeah, CEO's, and their bonus', are the root driver in the housing market. :rofl:

    So about that 30-40%.... :eek:
     
  8. Real World

    Real World Moderator Staff Member

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    Stock prices matter very little to a housing market. The biggest factor in housing is mortgage rates, followed by an economies strength. This upturn in housing costs started in the late 90's when people had been bank rolling money from a very prosperous 90's, and the fed dropping mortgage rates. It's lasted to this point because rates continued to fall, people were thus able to refi and draw cash via their equity, and a recession was averted pre, and post 9/11 because of tax cuts and surplus refunds. That the bubble is bursting is directly related to subprime lenders, cyclical history, and moronic purchasers. Also, the bubble right now is not national, it's regional. In '89 the bubble was national, and more severe because the economy went into serious recession.
     
  9. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    :bricks:

    It's not the banks' fault, it's people's fault for either buying a house when they can't afford it or buying too much house. "Predatory lending" ? "I hope they (banks) all pay dearly" ??? Did someone force people to take out these loans ?

    Just because too many people get funky adjustable loans because they can't see 5 years in front of them is not the banks' fault. Had they had stricter loan standards the opposite argument would be made that they were shutting out the lower middle class and below.

    Whether it's a computer, car or house, buy what you can afford. And if you don't you only have yourself to blame.
     
  10. STFarmy

    STFarmy In the Starting Line-Up

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    I have to agree to an extent. While the banks shouldn't be pushing these horrific loans, people should be smart enough to not buy into them. Unfortunately, we all know that most people aren't smart. So both are kind of at fault.
     
  11. Real World

    Real World Moderator Staff Member

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    Banks aren't really the problem this time around, it's sub-prime lenders like Lending Tree, Country Wide, Ditech, eloans, etc... who have zero ethics, and overreport or substantiate an borrowers income and credit ability. Couple that with morons who overborrow, and other retards who interest only'd and are now have to pay a real mortgage, and you get what you see now.
     
  12. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    I agree my son in law is a classic example, has three properties all upside down, in debt up to his eyeballs.. terrible business man, the lenders keep giving him money and he pays up to 5k to refinance, cashed in his equity about 3 times pissed it away, kinda like monopoly money.. I tell him I never paid a dime to refinance through a bank and he thinks I am lying.
     
  13. godef

    godef In the Starting Line-Up

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    No, that's not what I said. The connection is only casual. Typical Conservative attempt to simplify the message and thus mask any problems.

    It's ALL the pervasive attitude of greed that rules this country. CEOs raking in undeserved million$$$, which among other things leads to the overvaluation of a company's worth and its stock as alluded to by Patters, in order to justify making those million$$$.

    The rich does get richer. Do you really think the CEOs running those financial institutions that permitted all that money to be loaned will ultimately suffer real hardship? By REAL hardship, I don't mean a CEO losing seeing his $10 million in earnings reduced to $700K and being forced to sell his yacht.

    Seriously, whether you talk about CEOs or even pro atheletes, who DESERVES to earn tens of million$$$ a year. I mean, who has truly put in this much blood and sweat and hard work to merit this.

    Certainly, a good CEO will make his company successful, but 99% of them can be replaced by someone else who can do the job. Paying them million$$$ is not justified.

    Call me a heretic, but this country's free market economy is truly flawed. The government already recognizes this, thus the existence of antitrust laws. Of course we know communism doesn't work, because an economy will fall apart if its individuals do not have personal incentive to produce robustly enough to help drive an economy and not just his purse.

    I really think MORE socialism is needed for this country's economy to perform its best for the majority of its people. The irony is, rank-and-file blue collar will cry for my neck for suggesting such a thing, and yet it is this same rank-and-file blue collar that are being so abused by the powers that be. Conservative leaders just keep spouting false issues to distract and keep the people distracted, issues like gun control, gay marriage, and the like.

    There will be a second American revolution, this time an economic one, and it is when this occurs that this country will be most vulnerable to a takeover by a tyrannic movement. France avoided this in its revolution. Russia did not.

    Realize that there is nothing intrinsically evil about communism. Communism has nothing directly to do with tyranny; it is just a form of economics. It's actually a noble concept, that all people could work for the equal benefit of all. This is how the NFL is run after all. Communism and democracy are not incompatible.

    No, the real problem with communism is that it simply DOESN'T WORK as I alluded to above. What made communist Russia so evil was not communism itself, but rather its tyrannical leaders who decided they would MAKE it work no matter the costs.

    BOTTOM LINE: filthy rich CEOs and the current crisis in the housing market are both just symptoms of a country in decay.
     
  14. Real World

    Real World Moderator Staff Member

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    You sound about as bright as a solar eclipse. :rolleyes:

    Wow, the rich get richer, did you think that one up all by yourself? I love the envy of people who look at someone who has more than them, and instantly demands that those with more give it to people like them. Go to work and earn it like everybody else. Want more? Try harder, or take a chance with what you've got. I make $1,000 a week, and am by no means rich, but I don't want to take away what someone else has earned in order to redistibute it to those who haven't. Socialists are such loons. It's funny how all the people I know who live in a socialist society, hate it, and compain about how little opportunity there is to live a good life. Have you ever been privy to socialism? Have you ever witnessed what it actually is like? Have you lived with, spoken to, or even visited those who live under such a system? No thanks. I can tell you first hand that it is a sh!tty system.

    Anyhow, foreclosures and CEO's. I'm still trying to figure out how they relate.

    The NFL is a communist economic system? :rofl:

    Where did you whent to skool I'd nevar sawd you theer.
     
  15. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    Your right on the money with this one, my youngest daughter did it, I tried to warn her, now she is hanging on by the skin of her teeth, she did exactly as you said, she bought a house she couldn't afford and is now in trouble, I have helped her twice but she is in over her head.
     
  16. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    CEO jealousy is irrelevant. Are they overpaid ? Probably. But they could distribute 80% of their salary to the workers and the workers wouldn't see a difference other than a few nice meals out or the equivalent. All that money divided by all the workers amounts to little. There will not be an economic revoltion - quite the contrary, as more and more people get their 401Ks bigger they will realize they're part of big business. I didn't know anything about stocks, business, etc, but after 20 years of putting 15% in my 401K here I am a few hunderd thousand into the investor class. That's my retirement and I'm not alone.
     
  17. godef

    godef In the Starting Line-Up

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    So the stupid get stupider, is that waht you're saying?
     
  18. godef

    godef In the Starting Line-Up

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    Are you illiterate? I speicifally said the relationship was casual. Again, you twist the content.

    Yes, the NFL is closer to communism than captialism in rgard to the TV contract it makes and how it shares this primary monetary resource.

    But again, that was obviously just a off-the-cuff side remark made in gest. If these are the points you feel compelled to knock on me for, then you've already lost the argument.

    Mark my words, if this country continues on its current economic course, it will fail, ie there will be a revolution.
     
  19. Real World

    Real World Moderator Staff Member

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    This country is failing because it is headed in the socialist direction. Are you that blind? Take that hat off and look around. Entitlement programs, military spending, and massive taxation are imploding us from within. Of the 3, the worst, by far, are the entitlement programs. Hello, socialism anyone? Keep letting illegals in to suck off the government, and stuff business' coffers with subsidized labor at the taxpayers cost. Some people in this country are beyond hopeless.

    TGISACG puts it best:

    The unaware, are unaware, that they are unaware.


    I am so understating that 30-40%. :mad:
     

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