The Beginning Of The Beginning
The Providence Journal reports from Rhode Island. “Rising home foreclosures in Rhode Island could claim a new casualty, house prices. In 2005, house sales in Rhode Island outnumbered foreclosure auctions advertised in The Providence Journal by 14 to 1. Now, that ratio has narrowed to less than 3 to 1.”
“‘That’s the possible storm cloud on the horizon,’ said Timothy Warren Jr., CEO of The Warren Group. ‘There’s a threat that those distressed properties, whether they sell at auction or are dealt with another way, could have an impact on the market.’”
“Lenders advertised 678 houses in Rhode Island for foreclosure auction during the first quarter, up 122 percent from the same period last year, according to a Journal analysis of newspaper legal ads. The pace is on track to exceed last year, when just over 1,850 homes were advertised for foreclosure sale, which was more than twice as many as in 2005.”
“There were 5,639 single-family houses on the market in Rhode Island as of the end of March, the largest number for that time of year since 1997, according to data provided by the statewide MLS to the Rhode Island Association of Realtors.”
The Union Leader from New Hampshire. “Hundreds of New Hampshire homeowners are losing their homes to foreclosure, victims of a nationwide crisis within the ’subprime’ mortgage industry. And experts say it’s going to get worse before it gets better.”
“‘We’re in for a Nantucket sleigh ride,’ declared Ben Niles, past president of the Mortgage Bankers and Brokers Association of New Hampshire. ‘The damage is done. People are in mortgages they should never have been in, whether it’s their fault or someone else’s fault, and there’s no easy way out.’”
“‘It’s compounded by the fact the market’s oversupplied and flat, so it’s hard to sell a house today. And, depending on your loan-to-value-ratio, it can be hard to refinance,’ he said.”
“‘This is the beginning of the beginning,’ said Peter Hildreth, the state’s banking commissioner. ‘It is very scary stuff.’”
The Associated Press from New Jersey. “Deborah Beatty recognizes that she and her family could lose their home in Jersey City, across the Hudson River from New York, because they can’t afford the mortgage. The newly constructed three-level home offers a view of the Manhattan skyline and the Statue of Liberty from Beatty’s master bedroom window.”
“Her daughter, a graduate student with an annual income of less than $20,000, qualified for a mortgage of $600,000 with no money down, split into two different loans of 8.75 percent and 12.5 percent.”
“With income from tenants, which didn’t happen right away, Beatty’s daughter thought she could afford monthly payments of nearly $5,000. But she hasn’t made a mortgage payment in more than three months, and she’s receiving letters threatening foreclosure.”
“Beatty acknowledged the mortgage was probably too good to be true, and now her house is on the market. The family wouldn’t be able to afford buying another house and would likely rent, she said. ‘It’s embarrassing,’ Beatty said.”
The Long Island Business News from New York. “Long Island’s economists aren’t panicking yet, but they are clearly worried. It was easy to predict a drop from 2004-2005 when home prices rose at an unsustainable rate. So the slight fall in median housing prices isn’t a shock.”
“The bigger problem is in the subprime market, as 12 percent of Long Island’s riskiest borrowers are at least 60 days late on mortgage payments, up considerably from 7 percent a year ago.”
“‘Our home prices were so out of line,’ said Pearl Kamer, chief economist for the Long Island Association. ‘A lot of people bought more house than they could afford and that’s why we’re likely to see a continued decline. We haven’t seen the worst of this and the decline could last into 2009.’”
“Those looking to sell are waiting much longer to shed property. There’s an 18-month supply of homes on the market here, the highest level since 1991. ‘A lot of homeowners took their homes off the market, figuring they could come back in the spring,’ said Irwin Kellner, chief economist for North Fork Bank. ‘But sales are still dropping and homes are still staying on the market longer.’”
From KDKA 2 in Pennsylvania. “Housing foreclosures are at a record high in Allegheny County and it’s not just happening in poor communities. At today’s monthly sheriff’s sale at the county courthouse, there was one house on the block worth more than $800,000.”
“‘Mortgage foreclosure knows no boundaries any longer. It can go from the blighted areas to the most affluent,’ County Sgt. Rich Fersch said.”
“Real estate agent Jo Ann Milseky says people are buying those big houses with risky mortgage packages that require no money down and interest payments only, or they refinanced and have taken on additional debt.”
“She says banks and mortgage brokers have greased the skids. ‘I definitely think it’s the lenders, talk real fast and say you can afford this. We’ll get the mortgage for you,’ Milseky said.”
The Philadelphia Inquirer from Pennsylvania. “A New York auctioneer said yesterday that it would take bids for the Old City site of a proposed 33-story, 236-unit luxury condominium development that has not progressed beyond the planning stage.”
“‘We have flat prices, rising inventories and dropping sales,’ said Kevin C. Gillen, a Wharton School economist who monitors the local housing market. ‘The numbers are even worse for the condo market.’ He said the turnover rate for condos was about a third of what it was last fall.’”
‘We’re in for a Nantucket sleigh ride,’ declared Ben Niles, past president of the Mortgage Bankers and Brokers Association of New Hampshire. ‘The damage is done. People are in mortgages they should never have been in, whether it’s their fault or someone else’s fault, and there’s no easy way out.’
I’ll say it again; people from New Hampshire are the straightest talking group I have heard from on this subject.
“…people from New Hampshire are the straightest talking group I have heard from on this subject.”
Any idea as to why they are so honest?
State motto is “Live free or die”… says something about the character of the state to have that on your license plate.
Granite State…rated #1 state in the country relative to overall liveability by various rating agencies for like 6 years running.
However, William Loeb is dead and the spreading liberal cancer is changing the state’s character.
I give it another decade before all the loud, obnoxious retired public employees bailin’ out of MAZZHOLELAND destroy the social fabric.
A friend from Maine is staying with us for awhile and she doesn’t pull any punches in speaking her mind…
It’s a small state New England thing.
They weren’t so straight talking that they were willing to lend people money they couldn’t afford to pay back. They ought to change the state’s motto to “Live in debt, or die.”
yea, I ran a whore house , but heck , I’m retired
what a putz
Notice it says “past president” of the Mortgage Bankers and Brokers Association of New Hampshire — that may be why he could speak his mind and tell the truth. I don’t know if it’s a New England thing cause I grew up here, but people tend to tell it like it is.
Kind of like a “Missouri boatride”.
In the print edition on Sunday for this article, they had a picture of a family of seven in front of a pretty new-looking contemporary that was pretty big. Parents looked like they were in their mid-30s.
It seems like they were living beyond their means in terms of the number of children and in their housing choice.
Were these people in trouble with their mortgage? If not, you are probably assuming too much. Five kids is a lot, but if you know nothing about their income, it’s uncalled for to say that they must be living beyond their means. NH housing is less expensive than in MA (though the property taxes might kill you, and a lot of the less expensive towns have really cr*ppy schools) and one or both parents may have really good jobs in Boston in financial services or biotech.
Here in Western PA, homes are rotting on the market. Just looked at a house that has been on the market for 11 months. Purchased in 2005 for $325K, listed last year for $369K. Price now: $325K. The homeowners bought another, huge house last year.
Feel the pain?
Got Pain?
LOL
Let that house keep rotting. It ought to sell around $225K.
Right, this is the big problem right now. Everyone saw house prices spike, and now believes that is what they are worth.
In reality though, a house is only worth what a buyer will pay, or in todays market, given current credit conditions - can afford to pay.
“…only worth what a buyer will pay, or in todays market, given current credit conditions - can afford to pay.”
A belated comment: that’s a very good distinction between “then” and “now.”
“‘Our home prices were so out of line,’ said Pearl Kamer, chief economist for the Long Island Association. ‘A lot of people bought more house than they could afford and that’s why we’re likely to see a continued decline. We haven’t seen the worst of this and the decline could last into 2009.’”
Hey Pearl, you are just another overpaid so called “expert” late to call this mess. thanks for calling it 3 years to late!
Experts? HA!
Question: If price drops were “easy to predict” why couldn’t they predict them a year ago?!?
Have homes dropped to where they are affordable? Nyet
Have credit standards tightened as tight as they will get? Nein
Have layoffs impacted the economy yet? No (like my Spanish?)
So that “decline into 2009″ is highly likely.
Hey, I like the sound of that, say it aloud:
“Decline into 2009″
I think we have a new HBB mantra.
Got popcorn?
Neil
Ride the decline into 2009
Keep reading Ben through 2010
Auction heaven in 2011
Congratulate ourselves in 2012
Buy (but be mean!) in 2013
That should be a t-shirt!
Sell me one of those T-shirts!
Sorry, Renter, but the Long Island Association has been consistently (though not loudly) bearish on the state of Long Island residential real estate. It’s something of a chamber of commerce, made up of local and regional businesses, who were feeling the pain of housing because they were having problems staffing. It is too expensive to pay people enough to live on Long Island. With ’starter’ townhouses pushing half a million, retirees aren’t the only people heading south. The LIA was drowned out by the Realt(wh)or(e)s in the MSM –until recently–, but they were there.
I was never enamored with their solutions; they were pushing for government support of high-density ‘workforce housing’ development. I (still) believe that a simple old fashioned correction is necessary. But they’re not what you say they are.
“Real estate agent Jo Ann Milseky says people are buying those big houses with risky mortgage packages that require no money down and interest payments only, or they refinanced and have taken on additional debt.”
“She says banks and mortgage brokers have greased the skids. ‘I definitely think it’s the lenders, talk real fast and say you can afford this. We’ll get the mortgage for you,’ Milseky said.”
It so funny how realtors have been pushing the blame off.
Hey Jo Ann look in the mirror.
People around the NY Metro don’t understand how interconnected it is. People on the Island say to hell with NYC and its poor people, not realizing that NYC is where all their money comes from. And people in NYC think “we’re special,” particularly with regard to real estate prices. Get ready, here it comes!
“Get ready, here it comes!”
…or do you mean BOHICA?
Says “We haven’t seen the worst of this and the decline could last into 2009.”
Right on IMO and it’s nice to finally see an expert not saying the worst is over… I’d rather hear from honest experts than housing market experts.
We are headed for a real mess, I recently looked up homes in foreclosure in my neighbourhood. I drove by them and here are BMW’s and SUV sitting in the drive way with neatly cur lawns…WTF. One couple was 26,000 behind in their mortgage payment. I would hate to say this, but things may surpass the recession everybody worries about and go to a depression. All you have to do is look around, how about the article on Ben’s blog this morning with a women ( graduate student) with an annual income of around 20,000 and qualifying for 600,000 dollar loan. When the redcession starts to go full swing, milirtary recruitment will pick up and everybody will be hitting their quotas.
It shocks and amazes me too on how their going through foreclosure and drive these expensive vehicles, but hey they can probably do it again by filing bankruptcy and applying for a 600k loan with a salary of 20k.
Sounds like you’re almost ready to join the “depression camp”.
Beatty acknowledged the mortgage was probably too good to be true
WTF is this supposed to mean? “The MORTGAGE is too good to be true?” What was too good to be true is a person making $20K being able to afford a $600K mortgage. The mortgage is what is it is: a loan. And this from a graduate student.
We disconnected the price of a house, from people’s ability to pay. I keep hearing how this is all related to the sub-prime troubles. NO, the sub-prime trouble is a product of having disconnected ability to pay from price.
It is just going to get worse and worse until prices return to affordability.
So, we’re going to see mass foreclosures on people that can’t afford their houses. The “experts” keep tossing out the 20% sub-prime saying 2 million homes at risk. My guess is that it will be closer to 5 million in the first round.
Then we’ll see a giant second round of foreclosures as people that technically can afford their house realize their mortgage is twice what the house could sell for. You mean, I could let the bank foreclose, then buy the house back for half price?
This problem is massive.
This problem is massive. >
Got lots and lots of popcorn?
Decline into 2009!
Neil
You mean, I could let the bank foreclose, then buy the house back for half price?
So how would this work? The homeonwer has a foreclosurer on their record but can somehow [qualify] to buy it backfor half price? Maybe in bizzaro land.
Bizzaro until you realize how desperate banks/mortgage companies will be for cash flow. At that point, a little down payment and a good DTI…
Got popcorn?
Neil
That theory REALLY works for condos, since they are very fungible within a complex.
“Her daughter, a graduate student with an annual income of less than $20,000, qualified for a mortgage of $600,000 with no money down, split into two different loans of 8.75 percent and 12.5 percent.”
She sounds to me like a prime candidate for the taxpayer-funded FHA bailout proposal which Congress is hastily trying to pass into law while few are looking and no newspapers are reporting.
If she was a strawberry picker from California she could of qualified for at least $750K.
If a ‘Graduate’ student can not do the math - we might be discussing the wrong future problems on this blog.
If she were an illegal immigrant strawberry picker, then she could have legally qualified for a mortgage loan but not legally qualified to earn the money needed to make payments until foreclosure date.
GS, your comments on the illegal immigrant issue crack me up. I am in COMPLETE agreement with you, but the things you say make me chuckle.
That reminds me of locales that levy a Marijuana tax, even though it might be illegal to buy or sell it.
Well, it’s not like calculus is a core requirement for most degrees anymore.
No, it’s Realtor math..a grand social experiment that was implemented with diasasterous results.
“Well, it’s not like calculus is a core requirement for most degrees anymore.”
There’s no excuse, I took the basic math course and knew my limits and I’m not a graduate student.
Sobay -
“A ‘graduate’ student can’t do the math’”
My neighbors’ kids are talking about going to grad school. Nice kids, but not very bright. Dad is a mechanic; mom is stay-at-home, so I assume grad school is common talk at colleges these days. My experience in hiring kids out of college is that they all expect to be managers in 2 years; I guess they think that grad school qualifies them for management immediately. Just another example of where people aren’t willing to work for the things that they want. And don’t tell me that grad school is work - I’ve seen the level of “work” these poor excuses for schools require. It’s pathetic.
well see, college is little more than tradeschool these days. Grad school today is like “college” 30 years ago.
My experience:
High School AP Courses - Consistent all-nighters
College - Little studying required, thinking: Why am I here?
Grad School - a complete waste of time, so I worked instead (network administration; it paid very well).
She’s probably getting a graduate degree in Psychology or something, thus the lack of math skills.
The Psychologists I know have far better math skills than network administrators (computer plumbers).
Done an FFT lately? Time-series analysis of EEG waveforms? Smoothed BOLD activation using a gaussian kernel? Used varimax rotation to make the eigenvectors orthogonal?
Oh, you installed an operating system yesterday? Whooptie poop.
“Used varimax rotation to make the eigenvectors orthogonal?”
Sounds perverted. This is a family oriented blog, you know…
There was some kind of weird thinking in the 60’s:
(1) College degrees in the past had translated into lives of relative affluence.
(2) Therefore, if everyone went to college, everyone could be affluent.
(3) If not everyone was “qualified” to go to college, community colleges with open admissions would solve the problem.
(4) The cow jumps over the moon, technology cures everything, and Scotty beams you to wherever you want.
yeah, I would argue that in most fields education has become a bit of a red queen race, where higher and higher degrees are required as entry qualifications to do the same work.
“College degrees in the past had translated into lives of relative affluence.”
Definitely how people thought of it, although to me it sounds like a classic case of confusing correlation with causation. I’d say it’s far more likely that prior to the 60’s, relative affluence translated into college degrees. It’s sad but funny how the “little people” (myself previously included) tend to see what the rich have and assume that all they need is those things and then they will be rich, too. Oh well, those aspirations can be used to sell a lot of cardboard McMansions…
Excellent insight. Nicely stated.
Cargo cult.
And how much debt will they take on to go to grad school?
Student debt is another ticking time bomb.
No wonder young people can’t save up for a down-payment. They have already becoming food for the debt machine.
Talking about grad school and getting in are two different things completely. I can talk about my plan to be emperor of the universe, but the probability of that happening are pretty low.
I see plenty of undergraduates that “plan” to go to grad school. Sure, some of them are geniouses, but some are pretty dim: a C- minus average aint getting you into grad school anytime soon. Better have a plan B!
getting a master’s degree is no big deal. The main thing is, does the cost/benefit analysis favor doing so? In my own case as a teacher, getting a master’s degree made sense since the 6,000 dollar cost (online courses, 1 week in one summer for a field trip) translated into 12,000 dollar increase in yearly salary within 2 years. Didn’t learn much that I didn’t already know. And didn’t need a dissertation like my wife did. (She’s still complaining about that.
)
I was thinking about PhDs. As far as master’s of Ed and teachers…I had an office mate that got his PhD in Education, and for a while he was an online instructor. He had a really bad experience with that course, bad enough that he was thinking about going into the private sector. It seemed that a majority of the students (these are teachers, remember) just wanted the piece of paper and didn’t want to learn anything (and a substantial portion were dumb as rocks). Doesn’t bode well for our educational system, does it?
About 40% of people with bachelor’s degrees enroll in a graduate program within a decade of finishing undergrad. So, graduate degrees are common, in general. In some fields, most of the jobs are at the graduate level, or else graduate degrees are tied to job promotions/raises, so I would guess that is a big influence on the 40%. Most students wait several years between their bachelor’s degree and entering grad school. Probably Masters in Education and MBAs form a decent chunk of the graduate degrees, as they are means of getting work promotions. As an aside, I was amused by the fact that at many colleges, there are two MBA programs. One is a regular MBA that is taken by business grad students, the other is an ‘Executive MBA’ which is taken by business officials who wish to add some letters to their name. The amusing part is that these schools try to keep the business grad students out of the ‘executive’ courses because these courses are really easy…
The strawberry-picker thing was worse, because I believe that was SFH. At least this Beatty woman had the (amateurish) plan of renting out some units. Sounds like hers is a triplex?
Naah, the only bailouts that have a chance are for borrowers who could afford to make an ammortizing 30 year loan at “A” mortgage rates.
She was only a graduate student. She couldn’t be expected to do the math.
Forget about subprime or Alt-A loans; these are small change I think when compare to all all those over price houses brought with fix mortgage by people that can make payment. What happen if job requires relocation? Loosings ones job and the economy sour? What about moving to a “better and bigger” house? I think a lot of people are holding upside down mortgages, more so than most of us here realize.
A very late response — I agree with you that there is a whole lot of trouble in River City that is not directly related to subprime or liar loans, but merely to prime-loan mortgages that will be putting people upside down (and screwing the comps) when the owner has to sell. Few of those folks will have the stomach to consider landlording.
I said yesterday that the bust story hasn’t broken thru the NYTimes. I was wrong, today, from the headlines….
What used to be a profitable partnership between subprime lenders and Wall Street banks has now degenerated into a cross-country blame game
http://www.nytimes.com/2007/05/08/business/08lend.html?_r=1&hp&oref=slogin
They mention a “Survival Guide for Loan Originators.” Bad thinking. Loan originators who have no stake in the quality of the note are the source of the problem. Get rid of “loan originator” as an occupational category.
BUT THEY ARE COMPETING WITH ME FOR JOBS
And I didn’t commit Mortgage fraud, submit false applications, etc.
Do you really want to hire them in YOUR Company?
YES they will get hired first becuase they had jobs….scary thought.
This was one of the rock stars of lending…
“I am passionate about the normal person owning a home,” said Mr. Dallas, who is also chairman of the Fox Sports Grill restaurant chain and manages the business interests of the Olsen twins. “I think owning a home solves all their problems.”
Was he thinking he’d get a pass by including himself as part of our sports & celebrity adoration culture?
There’s going to be a lot of jail time and introspection time, all included in the price of one admission ticket to a holding facility, near you…
time for a new spillover topic
http://biz.yahoo.com/fool/070508/117863167701.html?.v=1
“At today’s monthly sheriff’s sale at the county courthouse, there was one house on the block worth more than $800,000.”
translated:
“At today’s monthly sheriff’s sale at the county courthouse, there
was one house on the block that had been worth more than $800,000 to some nincompoop a couple of years ago.”
Any borrower who gets a 600k
loan who only makes 20k a year is a fraud deal . I want the realtor investigated , I want the appraiser investigated and the front line loan agent that set this fraud deal up .This sort of absurd lending goes beyond just bad lending .This was a conspiracy on the part of the REIC to lure borrowers into a investment scheme which inflated the real estate market for the self-serving profit motive of the REIC . This was not about putting people into home ownership . This lending fraud was on such a massive scale that it hit the entire Nation . The REIC/NAR which promoted this investment scheme on a National Level pursuant to false investment advice, who knew that the scheme involved fradulent loans as a necessary leg in this scheme ,are not absolved . Borrowers that engaged in this investment fraud scheme pursuant fraudulent loans are not legally free from guilt or blame and can not cry no malice intented or a excuse of being naive .
Wasn’t it true toward the final years of the housing boom that the REIC was hitting up college students . God ,they didn’t even give them time to pay off their student loans .
I mentioned this in an earlier blog, my sister was asked if she was interested in RE on her campus. Yes they will go this far to get sales, just sad, real sad.
I know it’s been discussed here before, but what metrics are most here waiting for before they buy and how long are they willing to wait?
Our current plan is to buy an SFH no earlier than spring of 2009 or 2010 (approx. 2-3 years out). Currently, the houses we are looking at in the community we want to buy in are running between $200/sqft to $230/sqft. This is a decent community with good schools in Southeastern Mass. that is about 30 minutes from Providence and an hour + to Boston.
http://tinyurl.com/22ty6k (MLS ID# 70478818)
I’d like to be able to buy this at about $319,000 or at $175/sqft… what are the chances we’ll hit that by 2010. Prices are coming down so slowly (6% median decline over the last year) that I don’t have much conviction of getting a “fair” value anymore, especially if the Fed juices the economy. I think this decline hinges on jobs and so far jobs haven’t tanked…
Sorry, my link above didn’t work… this one should:
http://homes.realtor.com/Prop/1070173053
NE off 30% in 90’s bust
off 15% so far
“I know it’s been discussed here before, but what metrics are most here waiting for before they buy and how long are they willing to wait? ”
The metrics are pretty straight forward: affordability, rent and cost of construction.
Check the affordability index in your area compared to the historic norm. For PHX, it looks something like this.
Affordability:
Resale
Affordability
Index
95 -1988
98 -1989
106 -1990
118 -1991
123 -1992
139 -1993
125 -1994
132 -1995
130 -1996
131 -1997
135 -1998
130 -1999
117 -2000
124 -2001
124 -2002
126 -2003
114 -2004
84 -2005
74 -2006
When I see us push back over 115, I think we may be getting close. 120-125 would be safer
Rent:
Your P&I portion of house payment should be about the same as what it would cost to rent it. Renting, you don’t build equity, but renting you don’t have to pay repairs, taxes, insurance, etc.
Another “rule of thumb” is that the price should be about 100x the month’s rent. So, a house that rents for $1000 a month, should be priced at about $100K. Of course, this is more dependant on a interest rate than just comparing rent to P&I.
Cost of Construction:
When I see builders going bankrupt because they can no longer build and dump for below market, then I’ll know we’re getting close. Still, this one could be tricky since they probably way overpaid for the lots. Suffice to say, if new construction is still in full song, we’re not even close to the bottom.
“When I see builders going bankrupt because they can no longer build and dump for below market, then I’ll know we’re getting close. Still, this one could be tricky since they probably way overpaid for the lots. Suffice to say, if new construction is still in full song, we’re not even close to the bottom.”
This IS a metric, though a rather brutal one
IF a builder pays almost nothing for the land (and is not saddled with lots of land to be paid off), they should be doing OK selling houses for $90 - 120/ sq ft. When you approach that floor you know we are hitting bottom…. Unfortunately, most builders now are holding quite a bit of land (even if they use options on undeveloped land, they will own land which they are developing), and probably debt to match, along with owning their own lending arms. Thus $80-120/sq ft will bankrupt most of the present players BUT small builders or newly constituted companies (from the ashes of BK builders) could keep building as long as they can get land at fire sale prices.
“‘We have flat prices, rising inventories and dropping sales,’ said Kevin C. Gillen, a Wharton School economist who monitors the local housing market. ‘The numbers are even worse for the condo market.’ He said the turnover rate for condos was about a third of what it was last fall.’”
Even my beloved Wharton School is putting out some drivel? Sorry, Prof, but condo prices in Philly are not “flat.” They are dropping. Dude, you’re an economist! What ELSE do you think “rising inventories and dropping sales” have resulted in?
Looks like “flat prices” is the new euphemism for “falling prices”!
Auh… the Faux TRUE CONFESSIONS from the FBs and “IT can Happen Here or TO ME” tales of WOE is Me.
We have waited Long and Patiently for Reality and the RE Dream House to come tumbling down on these Crooks and Idiots LIKE a TON of BRICKS.
I suppose that it will now be required reading and “News” by the MSM to hear how they were Wronged, Used and Abused.
I WOULD personally just like to hear more detailed TALES of their Personal GREED, FRAUD, ARROGANCE and STUIDITY highlighted with their GAMBLING misfortunes RATHER than their INABILITIES as new Landlords to aquire TENANTS to Finance their MONEYPITS. A few bedtime stories of Prosecution and Jail Time of these Clowns and Enablers would be nice too.
I have no sympathy for these people, their RE Agents, Brokers or even the local governments that rode this Crime Wave and now have to SUFFER.
Although I am GLAD to hear them FINALLY wail and cry, this WILL be eventually become Boring as the SLIME slowly trickles down the slope to the BOTTOM.
But I STILL WILL …enjoy some popcorn and GLOATING a lot :).
Yeah… Why is this guy, and a million like him, not in jail?
http://www.mortgagefraudblog.com/index.php/weblog/permalink/arizonas_eagles_first_mortgage_company_shut_down/
And I object to taxpayer bailouts in that there is amble evidence that the problem lie in a massive fraud investment scheme that was promoted by the REIC and your friendly sub-prime lenders . It would be pre-mature to call for a tax-payer bailout when really it’s a matter of crime investigation of such a massive scale it’s scary . It would be unconstitutional for the government to bail out a fraud scheme knowing that fraud is involved when quilty parties need to be brought to justice . It’s call conspiricy to cover up a crime .
No wonder the gov. is pushing for FANNY/Freddie to refinance the fraudulent parties out of the crime scene .
I got to say that it’s been bothering me for a long time that the sub-prime massive fraud scheme has not been addressed on the level of the crime that it was . This is not just a matter of how to bailout the FB’s because they can’t afford their payments .This is the biggest crime scene in history . These borrowers are not going into foreclosure because they lost their job or had a medical emergency . These borrowers are going into foreclosure because of the fraud of the original loan package . The market prices are crashing ,not because of a local company closing down ,but because of a fraudulent investment scheme promoted by the REIC that inflated the market that required fraudulent loans for the market to be inflated for the investment scheme to work .
A real estate market is not created by fradulent loan packages from speculators and unqualified buyers . The public was bulked out of billions of dollars by the false/fraudulent inflation of real estate prices based on demand from these fraudulent buyers and their REIC partners in crime . These were “unable borrowers “.I demand that all appraisals that are in the appraisal data banks be stricken and not labled viable comps. I demand that the gov. does not bail out a fraud investment scheme promoted by the REIC for the sole purpose of a self-serving financial gain in violation of current laws on the books .
I’m making a bold statement that property taxes have been based on inflated prices due to mass fraud in lending therefore the general public was bulked out of millions because of this false demand market that was a investment scheme that required fraud loan packages to work .
Here is my guess.
If they started prosecuting people right now, the news would get out about what a fraudulant scham this all has been. Then there would be TRUE panic selling and the foreclosures would be like stepping off a cliff.
So, phases.
1) Get the market to slide slowly while the news is still “contained”.
2) Once the news is out and prices are in freefall, THEN go after the crooks to “prove” you’re serious in an attempt to restore confidence in the market.
Look, they didn’t go after the tech bubble pirates until after it hit bottom. Then they prosecuted to the full extent (in an isolated number of high profile cases) in an attempt to restore confidence.
They’ll do the same here.
You’ll see more rats of the higher ranks financially, leaving this country in droves…
Countries without extradition treaties are popular destinations, this year.
Yep .