Posted: 2/4/2010 8:25:35 AM EDT
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So the other thread regarding HAMP, short sales, and foreclosures got me to thinking.... and researching.
I found this little dandy floating around on the internet. What I'm curious about is absolutely ridiculous is how anyone can say that we're in "recovery" (a-la Obama and Bernanke...) 
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Quoted:
So, we should be looking forward to 9/1/2012? Is that date on the Mayan calendar? Not sure what this graph is supposed to be telling me. Check out the blue section, which is the # of ARMs that will be "coming to term". In other words, their low-rate teaser periods (such as the fixed 3% for 3 years type stuff that was offered) is coming to an end. Starting in May (ish) of this year and running through early 2012, the sheer number of ARMs that will adjust is going to be staggering. We should expect to see further flooding of home foreclosures, defaults, short sales, etc. The .gov is trying to tell us that we're recovering and that we should start buying and selling as usual. This couldn't be further from the truth. If you haven't paid off as much debt as possible and started putting your money into something tangible and worthwhile... well... I'm sure you can see where I'm going with this... |
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Quoted:
So, we should be looking forward to 9/1/2012? Is that date on the Mayan calendar? Not sure what this graph is supposed to be telling me. The next mortgage crisis is around the corner. Given the last crisis nearly wiped our banking industry, the next wave will make it very interesting. |
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Quoted: Quoted: So, we should be looking forward to 9/1/2012? Is that date on the Mayan calendar? Not sure what this graph is supposed to be telling me. Check out the blue section, which is the # of ARMs that will be "coming to term". In other words, their low-rate teaser periods (such as the fixed 3% for 3 years type stuff that was offered) is coming to an end. Starting in May (ish) of this year and running through early 2012, the sheer number of ARMs that will adjust is going to be staggering. We should expect to see further flooding of home foreclosures, defaults, short sales, etc. The .gov is trying to tell us that we're recovering and that we should start buying and selling as usual. This couldn't be further from the truth. If you haven't paid off as much debt as possible and started putting your money into something tangible and worthwhile... well... I'm sure you can see where I'm going with this... Fed will demand that ARMS keep the same low interest rate. Bankers, taking the example of Lehman Bros will go along. |
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I want to buy a foreclosure soon, and I want a good deal. What I get out of the chart is:
1) Continue to improve my credit score. 2) Save more $$$$$ for a down payment. 3) There will be a lot more bank owned properties hitting the market in 2011 and 2012. 4) Prices should continue to drop, so wait a while longer to buy. Also, a political note: the chart says that the Democratic Party is totally screwed in the 2012 election cycle. The economic consequences of this many foreclosures, on top of the current deficit, makes it VERY unlikely that Our Messiah stands any real chance of re-election. Steve |
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Quoted: 3) There will be a lot more bank owned properties hitting the market in 2011 and 2012. The actual defaults and foreclosures are probably shifted into the future by six months to a year from the reset date. The homeowner has to run out of other assets, fall behind on the payments by several months, and the bank needs to start the paperwork on the foreclosure. That's assuming the bank is willing to foreclose. A lot of people think the banks are intentionally doing extend-and-pretend on nonperforming assets.
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