December 6, 2008

10% of American "homeowners" are now behind on their mortgage or in foreclosure. Wow.


Tilt.

You are witnessing something dreadful. Something shocking and disturbing.

Americans lied about their incomes. They committed rampant and serial mortgage fraud. They did cash-out refi's and spent like there was no tomorrow. They listened to realtors on commission, they watched housing porn shows, they gambled, and they lost.

Their leaders were bribed to look the other way. Their bankers bundled up their loans and sold what they could to unsuspecting foreigners, and let the taxpayers bail out the rest. And now home "owners" are walking away from the homes they 'own' in droves, with no repercussions. Except for the collapse of the worldwide financial system of course.

This, folks, is one of the most disgusting chapters in American history.

And it's nowhere near being over. Especially since the government and banks are now encouraging people to NOT pay their mortgages, since if they don't they can get a bailout too.

Thank you housing gamblers. Thank you realtors. Thank you bankers. Thank you congress. You f*cked us all.

Home loan troubles break records again

WASHINGTON (AP) — A record one in 10 American homeowners with a mortgage were either at least a month behind on their payments or in foreclosure at the end of September as the source of housing market pressure shifted from risky loans to the crumbling U.S. economy.

The percentage of loans at least a month overdue or in foreclosure was up from 9.2 percent in the April-June quarter, and up from 7.3 percent a year earlier, the Mortgage Bankers Association said Friday.

21 comments:

Anonymous said...

Got bunker?

Anonymous said...

When I was in the business 20 years ago the default rate was way under
1% for conventional lenders .When properties went into default they could usually be sold at close to the costs . Usually foreclosures were the result of someone losing their job ,or some unforeseen emergency ,like a medical problem .
Most people had skin in the game on their home ,so the homeowner would do anything not to default.

Sure ,sometimes a whole industry would close down ,leaving a Town
in a state of numerous foreclosures ,but it was never a Nationwide problem (except for the Great Depression ).

Needless to say ,I was not in the business during the toxic loan
mania ,but I wish I had known they were giving out these fake income loans . I am not tainted by whatever took place in the industry ,so I can only view loans as to how they should be underwritten .

From the minute I learned about the leverage that people were taking to gain appreciation ,I was horrified (this was back in 2005 ).I immediately knew that we would fall into a Great Depression ,in part due to so many jobs being tied to the false leverage markets and unsustainable debt .

The boom was nothing but a big Casino play in which all the gamblers planned on cashing in on the get rich quick schemes that were based on leverage and fraud .

I often think about all the innocent people who were taken down by the Stock Market crash of the late 1920's ,who had nothing to do with investing in the inflated Stock market of those times . The people who lost their life savings because a bank closed and at that time they didn't have FDIC insurance .

It becomes really scary to think about how your fellow man can take you down in spite of you being a law-abiding citizen .People who trusted the system and thought it was regulated and thought the rule of law was still operative are in shock now .

I don't know what is going to happen from here on ,but suffice to say it won't be fair whatever happens and it hasn't been fair thus far .

Anonymous said...

Connie DeGroot, Caveman Adkins, Lereah and Yun and the Rest of you swinish shitbirds in the REIC who participated in the collapse of the world economy selling those shitboxes, granite and stainless:

Hearing any footsteps yet?

Do you feel like someone is always watching you? They probably ARE.

Is your E & O insurance paid up?

How do you turds deal with the Demons that come in the middle of the night?

Deep in the dark of night when you are alone in your bed, Do you ever listen to your heart beat and wonder when it will stop?

You are doomed. Your clients will want to get up close and personal with you all soon. Good Luck with that.

Nevermore.

Anonymous said...

Seriously, if I missed a mortgage payment I would smack myself upside the head, then my wife would smack me upside the head, then my parents would each smack me upside the head, then my in laws would each smack me upside the head, then my sister (who lives about 3 hours away by car) would smack me upside the head, and so on. Seriously. Mortgages are for adults who are competent and responsible. If you can't pay your mortgage you can't afford to live there (by definition, duh) and it's time to move somewhere cheaper and rent.

Anonymous said...

Blame shifted from risky loans to a crumbling economy?

LOL.

Try adding a crumbling economy that was caused by the risky loans.

And the big ugly risky loans are hiding out in the "good" neighborhoods full of BMW's and Mercedes just getting ready to reset with the OptionARM wave.

Anonymous said...

"Americans lied about their incomes. They committed rampant and serial mortgage fraud. They did cash-out refi's and spent like there was no tomorrow. They listened to realtors on commission, they watched housing porn shows, they gambled, and they lost."

They listened to family and friends and TV commentators tell them to BUY, BUY.

They listened to Alan Greenspan and Susie Orman tell them to BUY, BUY on adjustable mortgages.

They listened to real estate agents tell them to BUY, BUY if they wanted to secure their financial futures.

It takes a lot of knowledge and conviction not to buy into it. For most people, they thought the hope of owning a home was being forever lost... until someone magically turned up and told them it was possible.

I understand that there are some Americans who are angry and frustrated by what is happening. But ya'll need to pull together and quit calling each other stupid. Everyone's been buggered by the system one way or another.

Quit dumping on the people who were screwed the worst.

Anonymous said...

Oh, come on. Everyone has been duped. Even you law-abiding, mortgage-paying types have been duped into staying around in a country that's going down the tubes. How's that any different from having a mortgage on a house that's going down the tubes? Where will all you be in a few years?

Take "getting screwed" up to the next level and take stock of where you sit right now.

Debt = Slavery said...

I have said for years that the mortgage structure based on 5% rates and up could not last.

I think one element of this mess that has not been talked about as much as it should is the fact that a $200K Note @ 6% interest is loan sharking. I had a loan at one time where my monthly payment was $1000 and $850 of that was interest...Thats a great deal....For the greedy banker. Could the untold story of this housing bust be that the sheeple woke up one day and said "Self...This is just not worth it so screw the bank & the tax collector".

The Fed said just last week they want to "Force rates down to the 4% range". I think it will happen sooner than later because just like that old scam called a vehicle lease...The 6% mortgage is DEAD.

AuAgPb said...

It's good to see HousingPanic back Keith. It takes a big man to admit he was wrong. All is forgiven.

keith said...

Where was I wrong?

Never said housing would stop going down. On the flipside, I said It Hath Been Foretold - housing would revert to the mean, and then overshoot.

But do tell...

keith said...

Holy crap for those of you in Phoenix

Those eyesore Centerpoint towers in Tempe - with the slick marketing brochures, wine and cheese for everyone (in their $500,000 apartments) just filed for bankruptcy.

What do they do now? Knock 'em down?

http://housingdoom.com/2008/12/06/another-couple-of-ghost-towers-for-the-phoenix-metro-area/

keith said...

Avenue Communities website is still on - check it out!

http://www.reallifestyle.com/

You get a tour from their official chef, some nice chill music, and you're all ready for the wine and cheese!

Oh, man, what a joke. These guys are the same ones that built the 3rd Ave. Lofts in Scottsdale - that is now almost all in foreclosure

http://www.centerpointaz.com/index.php/homes/PRICING

My guess? 60% off firesale coming up. At that point, owners could hope to break even on rent. But who'll finish the towers?

Studios - Starting from $326,900.

One Bedrooms - Starting from $345,900.

Two Bedrooms - Starting from $550,900.

Three Bedrooms - Starting from $937,900.

Anonymous said...

"...Quit dumping on the people who were screwed the worst."

I love it!

Let’s not play the blame game!

I particularly love it when these comments come from the following cast of self-centered characters:

–People who lied on their mortgage applications about their income (“But everyone, just absolutely everyone was doing it.” “It was acceptable at the time that there would be some fudging on income. So I didn’t do anything which no one else hadn’t done.” “The broker said it was no big deal. It was expected that there would be some play in the numbers. And it was just a little white lie”)

–People who knew they were getting in over their heads, but who went willingly anyways, because they “deserved” the big house, the granite counter tops, the spacious bathrooms, and the bright new twin SUVs in the driveway (“All I wanted was the America dream. Are you blaming me for wanting that? I thought I was supposed to want that.” “I worked hard, very hard in college. Was I suppose to live in squalor until I could pay for nice things? Sorry. I paid my dues pulling all-nighters in college. Once I graduated I swore to myself, Enough with the sacrifices.” “Everyone I knew was in a big house and living off credit cards. So why shouldn’t I?”

– People who claim they were duped– and I mean college educated types who otherwise claim to be, cooler and smarter than anyone else in the room. (“Listen, I got all these suits telling me it’s okay, everything’s fine. That I an afford it. I mean who knows better about my finances than my realtor and mortgage broker?” “I’m a man of the world. People like me know that it’s always best to leave it to the experts. That’s what I did. And it was the experts who screwed up, not me. So why should I take any responsibility for what happened. None of this is my fault.” “Did I read the mortgage papers before I signed them? Hell, no! I don’t even read the newspaper. No one I knew ever read those mortgage papers. People rightfully expected that everything was being done on the up and up.” “Isn’t it the government’s job to look out for the common man? Why is it my job to see that Im not being taken advantage of? What am I paying taxes for?”

–People who claim that morality, ethics and integrity are inapplicable to business transactions, at least inapplicable to losing business transactions. (“Sure, I signed the mortgage papers and agreed to the terms. But there’s a right under every contract that any party can breach that contract. At least that’s what my cousin Louie tells me. And all of cousin Louie’s co-workers at the town dump agree with him.” “Business is business. The golden rule to business is: Screw others before they screw you” “Listen Mr. Goody-Two-Shoes, I’m not keeping my word if it’s gonna to cost me. The government and the politicians break their word every day. What’s good for them is good for me.” “God doesn’t care how you act in business. God only cares about how you take care of your family. And if taking care of my family means walking away from my mortgage, then, I’m taking that stroll.”

Sorry, the blame game remains on ....

You all are responsible.

Anonymous said...

Keith, you forgot to thank Nick. The Nick's in our country really screwed all of us responsible folks over. I used to get so pissed when he bragged how he got away with not paying his HELOC after living it up. I guess he is right that those of us who do play by the rules are suckers/fucked savers.

patrat said...

I get tired of hearing about how the govt just wanted to help the poor get into houses and that is why we are in this mess. A big part of it was the keep-the-buck-pass-the-risk game, but the REALLY big driver, I think, was the I'll-pay-you-to-cover-my-bet-that-the-risky-loans-will-fail game (i.e. Credit Default Swaps). (Insurance contracts called by another name to keep them off books and unregulated.) This game provided the HUGE incentive to make more and more, riskier and riskier loans. The pay off was enormous. The insurers even got others to play the game so that THEY would be covered.
You don't hear much about these lately and I am wondering why not.
The bulk of the failure of these and the pay-option-arms are right around the corner I think.
Yes, Obama has been handed a complete mess.

Lady Di said...

This is a frightening number. Equally as bad: 1 out of 10 are now on food stamps. Unemployment is also at 1 out of 10 (if you use Mish's 12% unemployment number).
So sad. My motto this season: help where you can and count your blessings.

Anonymous said...

"...Centerpoint towers in Tempe..."

"...about the only possible uses I can see for several years...the world’s biggest haunted house next October. You could just record the screams of the investors and play it over a loud speaker. The lights will likely already be shut off, so it’ll be dark and scary enough." :^D

Anonymous said...

Here they come, America:

Chinese property hunters to raid US
By Geoff Dyer in Beijing

Published: December 5 2008

Chinese bargain hunters are preparing to descend on American cities such as Los Angeles and San Francisco, where homeowners have suffered some of the steepest price falls in the US.

SouFun, the biggest real estate website in China, is organising a trip next month to look at properties in California and possibly Nevada. Liu Jian, the company’s chief operating officer, said about 300 people had expressed interest in the idea in the three days since it was advertised, though the company would take only a small group on the first trip.

DOPES 2 said...

HI TOOLS!!!!

KEITH!!!! WHERE DID YOU FIND A PICTURE OF MY KEYS BEING SENT TO TANGELO?!?!?!?!?! I THOUGHT I WOULD SEND HIM SOME XMAS CHEER WITH THE JINGLE MAIL!!!!

JINGLE MAIL, JINGLE MAIL, JINGLE MAIL ROCKS!!!!!

ALL KIDDING ASIDE, WHEN WIFEY AND I GOT OUR LAST HOUSE (JULY 2005 - BEFORE THE TEXAS BUBBLE TOOLS) WE HAD TO GO THROUGH THE FRIGGEN WRINGER BY THE LENDER!!!!

720+ FICO AND THEY WANTED EVERYTHING UNDER THE SUN DOCUMENTED, NOTARIZED, SIGNED, SEALED AND DELIVERED!!!! OKAY, WHATEVER YOU NEED, I UNDERSTAND ABOUT QUALIFICATIONS!!!!

THEN WE REFI IN 2006 WITH A 720+ FICO AND THEY ASK FOR ABSOULTELY NOTHING!!!! LOAN SOLD TO TANGELO, ET AL!!!! 30 YEAR FIXED 5.65%, NO POINTS!!! TOOLS!!!! THAT WAS THE FINAL NAIL THAT THIS WAS A FUCKED UP RACKET!!!! A COMPLETE NINJA (ACTUALLY A SISA) LOAN BASED ON WHAT I SAID WE MAKE IN A YEAR AND A CREDIT REPORT!!!!

NOW I KNOW WHAT YOU ARE SAYING, "DOPES, YOU ARE AN ASSHOLE!" TRUE, BUT I HAVE NEVER, EVER IN MY LIFE, BEEN LATE OR MISSED A PAYMENT FOR ANY BILL FOR ANY REASON!!!!

LUCKILY, IN TEXAS, THE PRICE HAS ONLY DROPPED TO ~$110/FT IN OUR GHETTO!!!! DRAG IS THAT THE PRICE WAS ~$130/FT IN LATE 2006/EARLY 2007!!!! WOULDA . . . COULDA . . . SHOULDA!!!! AS LONG AS IT DOES NOT DROP BELOW $90/FT, WE SHOULD FAIR WELL IF A MOVE HAS TO TAKE PLACE!!!!

SO ANYWAY, IN MY OWN SELF INTEREST I HOPE PRICES OUT HERE DO NOT COME DOWN!!!! I NEED TO SELL BEFORE2012!!!! ELSEWHERE, THE PRICES NEED TO COME DOWN - NV, CA, AZ, FL, ETC.

FUNNY THING, OUR SHIT IS ACTUALLY LESS THAN 3X GROSS INCOME, AS IS THE OTHER TOOLS IN THE HOOD!!!!

SO IF YOU ARE MOVING TO TEXAS IN THE NEXT FEW YEARS AND YOU BANK/EARN OVER $150K/YR LET ME KNOW SO I CAN SELL YOU A HOUSE WITHOUT A REALTWHORE!!!! JUST TAKE 6% OFF OF THE LISTED PRICE!!!!

DIMWITS!!

NITWITS!!

HALFWITS!

TWITS!!!!

TARDS!!!!

TOOLS!!!!

DOLTS!!!!

DOPES!!!!

Anonymous said...

Failed projects: The wrecking ball is in order for a failed project where I live. 3 condo towers (90 units) on A1A, only 1 complete with a handful of people (I mean fools) that closed on units, the other 2 bldgs sit empty, unfinished, foreclosed, 1 open to the elements with no windows/doors.

The risk for any buyer/developer of this project is so great the bank will pretty much have to give it away. Typical liquidations are 50% now. This project will have to be slashed 80%+ to attract a developer to not only finish another builder’s mess, but to take 4+ years to sell the units out. Meanwhile, the few owners and developer are making up for the lost HOA maint. fees ($450/mo.) to keep the place up, and developer paying prop taxes on each unit at $4K per year.

Worse than all this, these projects have a “stigma” that only a wrecking ball can erase.

keith said...

Wow - that Centerpoint development in Arizona, after four years of selling, had just sold 40 of the 350 units

And I bet none of those 40 would have closed.

Idiots.

And to think, take that one development in Tempe, and times it by 1000.

And that's Dubai.

http://tinyurl.com/63pumy

The two towers, with about 350 units, have 40 signed contracts to purchase, Losch said. "It's excellent, positive news" for buyers, he said of the bankruptcy filing.

Work on the towers stopped more than a month ago. Losch says he has an appraiser who will confirm that the value of the property when finished would be large enough to pay off creditors.

"I hope so," said Keith Hendricks, an attorney at Fennemore Craig who represents Mortgages Ltd. investors. But Hendricks was skeptical that the numbers would add up.

Real estate analysts have questioned Centerpoint's condominium prices starting at $300,000 in a real estate market that has collapsed.