Helping People Make Bad Bets On Housing
Some housing bubble news from Wall Street and Washington. “Existing-home sales increased 2.0 percent from April, but are 15.9 percent below the 5.93 million-unit pace in May 2007. The national median existing-home price for all housing types was $208,600 in May, down 6.3 percent from a year ago when the median was $222,700.”
“Lawrence Yun, NAR chief economist, said there’s still a lot of inventory in the market. ‘The large supply of homes on the market clearly favors buyers, and it should take several months to draw the inventory down,’ he said. ‘Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices.’”
From Realty Check. “I asked the Realtors how much of these sales are ‘distressed’ properties, that is, short sales and REO sales which are bank-owned properties.”
“According to the Realtors, a full one third of sales are distressed properties. Think about that. Five million home sales expected this year and of those about 1.65 million will be homes that a seller couldn’t afford to keep.”
From MarketWatch. “Lennar Corp. reported Thursday a second-quarter loss that wasn’t as deep as the year-ago period, but the home builder expects conditions in the housing market to worsen as the year wears on. Lennar posted a loss of $120.9 million in the three months ended May 31. Total revenue fell 61% to $1.13 billion, Lennar said.”
“‘We recognize that the remainder of 2008 will likely see further deterioration in overall market conditions,’ said CEO Stuart Miller. ‘Foreclosures have increased while higher unemployment and diminishing consumer confidence have defined overall economic weakness.’”
From Bloomberg. “Miller is reducing prices to lure buyers. The average price of a Lennar home in the fiscal first quarter fell 8.3 percent to $278,000 from a year earlier and the company sold the most homes in Arizona, Colorado and Texas. The median U.S. new home was $231,000 in May.”
The Atlanta Journal Constitution. “No one wants to buy Atlanta-based Post Properties. So the builder of multifamily communities announced Wednesday that it has ended its five-month quest to be purchased. A number of other factors have worked against Post, said analyst Haendel St. Juste, including the high cost of construction and the prices Post paid for land when competing against condo builders.”
“Post Properties owns 22,437 apartment homes in 62 communities. The company is also developing and selling 535 condominiums in four communities. ‘Once people got in under the [Post] kimono they realized there were some issues going on,’ St. Juste said.”
From Business Week. “A subdued Angelo Mozilo got choked up at the last shareholder meeting for Countrywide Financial. Nearly 70% of Countrywide shareholders approved the firm’s sale to Bank of America at the June 25 meeting. The deal is expected to close July 1.”
“Security was extremely tight at the event, held at Countrywide’s campus-like headquarters in suburban Calabasas, Calif., northwest of Los Angeles. Security guards in dark suits and earpieces roamed the premises. Mozilo entered the auditorium quickly from the side of the stage just before the meeting began.”
“Mozilo gave a short speech as the votes were being tallied. ‘Despite widespread and often unfounded headlines of the past year, Countrywide has made a positive impact on the country,’ he said.”
“He recounted how the company had invested early in new technologies that made mortgage processing quicker and more efficient. He said Countrywide was the first to pass $500 billion in loans made in a single year, and the first to pass $1 trillion in loans being serviced.”
“Countrywide’s passing means the end of such ‘monoline’ firms, in favor of more diversified institutions, Mozilo told shareholders. In the future, he said, ‘the business of mortgages will be housed within a banking protocol.’”
“Scott Adams, a regional coordinator with the American Federation of State, County and Municipal Employees’s pension fund, came prepared with a speech he did not get to read. Adams scoffed at Mozilo’s claim that Countrywide’s efforts had kept 143,000 troubled borrowers in their homes. ‘He said they made 22 million loans; 143,000 is not a whole lot,’ he said.”
“‘I’m very proud of our accomplishments,’ Mozilo said. ‘We’ve made the dream of home ownership available to everyone regardless of ethnicity. We’ve helped millions of people in good times and bad.’”
The Seattle PI. “State regulators are seeking to revoke the license of Countrywide Financial and fine the nation’s largest mortgage lender $1 million after its investigation showed it engaged in alleged predatory practices.”
“‘The allegation offers evidence that Countrywide engaged in a pattern to target minority groups and engage in predatory practices,’ Gov. Chris Gregoire said at a news conference Wednesday.”
“Gregoire said Bank of America’s takeover of Countrywide ‘will not stop our enforcement actions. We want these consumers to be made whole.’”
The Chicago Tribune. “Illinois Atty. Gen. Lisa Madigan won the race by a nose Wednesday, suing mortgage lender Countrywide Financial Corp. for fraud hours before her California counterpart did the same.”
“Madigan then introduced Schaumburg special-education teacher Melissa White, who said she was one of the victims of Countrywide’s business practices. White, a single mother, said she approached Countrywide in 2005 because she wanted to refinance her two-bedroom home to pay medical bills.”
“When White showed up at the closing, she was told she didn’t qualify for a fixed-rate loan and instead would be receiving a loan known as a 3/27-a fixed rate of 8.75 percent for three years, which would beginning adjusting at regular intervals.”
“When the first reset approached, White could refinance again, her broker told her. But by then, the credit crisis was in full swing and White was stuck.”
“It took her six months and hours on the phone trying to reach someone before the mess was straightened out. Yet her credit remains damaged, White said.”
“‘I was sold a bill of goods and there are just so many more out there,’ she said. Since the problems with her mortgage, White said she and her son have been ‘going without, going to a food pantry, deciding which medication to take and which to go without.’”
“The bigger issue, said Bert Ely, a banking consultant in Virginia, is whether subprime lenders were doing exactly what the nation’s public officials wanted them to do-finding new and creative ways to boost home ownership among people who would not have qualified for traditional loans.”
“‘Public policy has done everything it can to help people make bad bets on housing,’ Ely said. ‘We’ve been encouraging people to take risks they shouldn’t have taken. There is plenty of blame to go around.’”
From CNN Money. “CNN’s Larry King on Tuesday talked to several experts in the real estate industry to get advice on handling the mortgage meltdown.”
“King: ‘Let’s take a call from Tuscaloosa, Alabama.’ Caller: ‘I have a loan with Countrywide, and they will not refinance our interest-only loan, because they say our debt-to-income ratio is too high, and their workout department won’t even look at us because we’ve never been behind on our mortgage and we’re not currently behind. It’s going to reset in August. What can we do?’”
“Barbara Corcoran: ‘I have a solution, and it’s a fall-back solution, but it sure gets attention. You can make an appointment, or not make an appointment, go over there with the deed to your property and the keys to your front door and say, OK, I’ve had it. Here’s my deed, here’s my keys, and you’ll get attention.’”
“King: ‘Is this a good time to sell a house?’ Corcoran: ‘Of course it’s not a good time to sell a house. The question is, if you must sell a house, how do you unload it?’”
The Connexion on France. “Falling sales of homes are forcing owners to slash up to 30% off the value of their house. Property websites targeting foreign buyers are seeing some of the largest drops in prices.”
“British estate agent in the Dordogne Gil Kendall, who has specialised in second homes for foreigners for 20 years, said ‘the number of sales in our part of the world has fallen dramatically.’”
“The percentage of foreign buyers was ‘greatly reduced,’ she added. ‘In the last two years prices have not risen overall and are starting to fall from the level two years ago. This explains why deals are being done at 20-30 percent below the asking price,’ she explained.”
“‘I wouldn’t be surprised if it’s another three to four years before things line up again,’ Mrs Kendall said. ‘People thought prices could only go up. Property was cheaper than at home. Suddenly the situation has changed quite dramatically.’”
The Star Phoenix from Canada. “Ron and Wendy Balezantis and their children packed their minivan Wednesday and drove south to Arizona. This will be the first time the kids see the new condominium Ron and Wendy bought a few months ago.”
“The Balezantis family has joined a growing number of Saskatchewan residents buying up houses and condos in American states, particularly Arizona. The strong Canadian dollar, combined with rock-bottom prices for real estate in many cities such as Phoenix, means Canadians can snap up vacation homes or investment properties for less than half of the price of just one year ago.”
“‘You can get brand-new houses here for nothing. Nice three-, four-bedroom places for $200,000. There is a real opportunity,’ said Glenn Williamson, CEO of the Phoenix-based Canada Arizona Business Council.”
“‘We fell in love with the area and just said, ‘Let’s do it. Let’s go for it.’ The prices are way cheaper than in Saskatoon,’ Mike Losie said.”
“The brand-new units, which Losie said range from $120,000 to $160,000, have a pool, deluxe fitness centre and other amenities. Both families intend to use the places for several weeks a year and more when they retire in a few years. If they decide to sell in the future, the market will undoubtedly have bounced back by that point, they say.”
“Phoenix Realtor Jay Thompson said if it wasn’t for Canadian buyers, ‘we’d be starving.’”
“Al Didur of Realty Executives in Saskatoon said…some of his clients are taking equity out of their Saskatoon properties and investing it in Phoenix, which is seen as a severely undervalued market that will bounce back, he said.”
“Even groups in Arizona working with low-income buyers or sellers, or those stung by predatory lending companies, welcome the influx of homebuyers from Canada. ‘Right now, we see it as a good thing,’ said Mayra Khunpannya, a counsellor with the non-profit group Acorn Housing.”
“For the Balezantis and Losie families, they say they intend to make the most of this unexpected chance to own property in such a great spot. ‘It’s a good investment and a golden opportunity for us to do something we never dreamed of doing,’ said Mike Losie.”
“‘I’m very proud of our accomplishments,’ Mozilo said.
I wonder how proud he’ll be sitting in front of a judge, prosecutor and jury….
mission acCOMPlishments!
What a lying sack of shit. There must be a special place in hell for scumbags like Angelo Mozilo.
Keep the popcorn popping,
Red Baron
The only regrets the orange punk has is that he’s been kicked out of his play ground, and wouldn’t be able to bonus himself every five minutes. It’s not the way he had planed to wrap things up.
He’ll probably pull a Ken Lay, and escape serving time, above ground.
“‘I’m very proud of our accomplishments,’ Mozilo said.
I bet he will be proud when Bubba bends him over in prison.
Mozilo, just ask Berrnie Ebbers who proud he is today, your next!
“Security was extremely tight at the event, held at Countrywide’s campus-like headquarters in suburban Calabasas, Calif., northwest of Los Angeles. Security guards in dark suits and earpieces roamed the premises. Mozilo entered the auditorium quickly from the side of the stage just before the meeting began.”
If he’s so proud, why’s he so scared?
big gov always helps
vote for mo free sht in November
I will. And I be sure to do it in a way to take from those who have had a free ride for far too long.
No kidding. After decades of market fundamentalism, corporate socialism, “privatize profits, socialize risks”, etc. it would be nice to see some socialism for the *working class* for a change.
If we’re going to spend other’s people’s money (Congress) or conjure it out of thin air (Fed’s cut & inflate), why not spend it on something worthwhile, like basic healthcare for citizens who don’t have any?
It would be nice if Big Government subsidized someone other than the top 2% for a change.
DAVID WEIDNER’S WRITING ON THE WALL
The latest Wall Street witch hunt
Commentary: Prosecutors bring a weak case as their first in the credit debacle
By David Weidner, MarketWatch
Last update: 8:56 a.m. EDT June 26, 2008
NEW YORK (MarketWatch) — The credit crisis has hit everyone hard. It’s crippled the economy. It’s put people out of work. It’s blighted neighborhoods. It’s erased years of profits at big banks, wreaking havoc on shareholders and our 401(k)s.
We’re all victims. And what do most victims like to do? Get better. If they can’t get better, then they do the next best thing: blame someone else for causing their pain and grief.
Someone, after all, had to be making money from all of these overrated, never-should-have-been-built collateralized debt obligations. More than $382 billion stemming from these toxic securities and bad loans have been written down by the world’s banks.
Whatever Weidner. He just can’t come out and say that investors knowingly took risks and lost their shirts. He’s gotta go and blame the victims for claiming that they’re victims. At the same time, he doesn’t come out and say that these so called investments are gloriously complex versions of three card monty.
Yes Weidner, these people lost their shirts because they are rubes right? That sounds like the type of language you would “want” to use. It doesn’t take away from what I consider to be a fact that Wall Street should always be looked at with suspicious eye.
Gaining your trust is the first step in the game of every conman.
Agreed: The rubes have only themselves to blame for acting on the advice of Alan Greenspan and a bevy of other Wall Street experts.
“We’re all victims”
STFU David. I am not a victim. I am just fine. My investments are fine.
Speak for yourself, you irritating sack of sh33t.
Unintnetional reference to the Japanese housing bubble of the late 80’s-early 90’s?
____________________________________________________________
“No one wants to buy Atlanta-based Post Properties. So the builder of multifamily communities announced Wednesday that it has ended its five-month quest to be purchased. A number of other factors have worked against Post, said analyst Haendel St. Juste, including the high cost of construction and the prices Post paid for land when competing against condo builders.”
“Post Properties owns 22,437 apartment homes in 62 communities. The company is also developing and selling 535 condominiums in four communities. ‘Once people got in under the [Post] kimono they realized there were some issues going on,’ St. Juste said.”
They lifted the kimono, and there was a pile of unpaid debt-doo-doo clutched desperately between the thighs while rivulets of brown liquid were flowing down the inner legs.
“I was mentally prepared for The Crying Game scenario,” said the spokesman who didn’t give his name, “but this was far, far worse.”
You are really giving good post today, Fasty.
“Lawrence Yun, NAR chief economist, said there’s still a lot of inventory in the market. ‘The large supply of homes on the market clearly favors buyers, and it should take several months to draw the inventory down,’ he said. ‘Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices.’”
What a sack of shit. He’ll be saying the same thing in 2011.
Keep the popcorn popping,
Red Baron
Fear & Loaning & Lost Wages, A Savage Journey To The Heart Of The American Dream…
“‘I’m very proud of our accomplishments,’ Mozilo said. ‘We’ve made the dream of home ownership available to everyone regardless of ethnicity. We’ve helped millions of people in good times and bad.’”
Those millions should be invited to help mete out his punishment when he’s sentenced. They should also be there to divide his spoils amongst themselves.
Countrywide has the loan on the defaulted house I was renting for free. Also the one that just defaulted down the street from it. And the one owned by the nice couple who called me today telling me their house was back on the market after the deal fell through and they’re going to lose it, do I want to rent it (in Moab). Countrywide’s influence is being felt far and wide, but not necessarily in the way Mozilo intended.
Lost,
I read your short story yesterday. I loved the story and your writing.
Thanks! I have a book coming out soon if you are really masochistic and want to read more.
Post it again, losty, wouldja. I missed most of yesterday.
http://www.canyoncountryzephyr.com/june-july2002/eons-ions-chinle.htm
somehow I think you could’ve written this one, Oly, while sitting in the meeting room waiting to shoot down another developer…
And please tekk us when the book comes out and how we can get it.
tekk=tell
will do, thanks
Bravo… that was a great read. I even stayed at work past 5 to finish. Will be looking forward to the book.
I would absolutely read this! I’ll be watching for updates. I felt like I was sitting in the hearing room and I could envision all participants and surroundings. That’s my criteria for great writing. Without crazy elaboration you set the tone, the manner and the characters. That’s why I read the book and don’t watch the movie…I’m always disappointed.
“We’ve helped millions of people in good times and bad.’”
Let’s fix that, Angelo:
We’ve helped millions of people FROM good times TO bad.’”
Hmmm. let me see. If Mozillo and his bodygaurds were at a foreclosure conference and saying that same speech, I don’t think he and his bodyguards will come out of there alive!
It would be like the KKK rallying at Watts or Compton.
Countrywide did help them out, most got 3 months free rent, and got to live in a home that under any other circumstances would have been unaffordable to them, also tons of folks took all sorts of money out of their homes that they’ll now not have to pay back.
Only losers are those who valued their credit and didn’t play and the suckers who bought the notes without looking hard at collateral value (under a whole range of scenarios).
All except old friend of mine who was stuck between 8 yr divorce from wealthy liar/ bad bad Cook Co judge, and non enforcement of judgements AND CW continually asking for more docs, then never ever answering, yet last thing said was after This doc, we will close. So, guess who lost their home. Dealing with Lisa Madigan. All this due to bad judge, and the list goes on.
Hope friend can get some restitution. Had never refied her home since ‘89 until this divorce and judges orders/then not enforcing original orders. So she was never one of those bad investor heloc type of owners.
You got that right. In the end, no-one made those ‘victims’ buy.
It just ended up being a perfect storm and blame all around.
“We’ve made the dream of home ownership available to everyone regardless of ethnicity.”
The dream, yes. The reality? Not so much.
Let’s correct that.
“We’ve made the nightmare of owing money on a depreciating asset available to everyone regardless of their ability to pay.”
Artificially boosting the sheep herd so they can be fleeced into golden parachutes.
“Existing-home sales increased 2.0 percent from April, but are 15.9 percent below the 5.93 million-unit pace in May 2007.
Looks like the NAR is up to their same old tricks of trying to fool the public by painting lipstick on the declining housing market to make it look better.
NAR, you lack total credibility!
Mr. Bear:
I saw a man kick down his white “For Sale” sign in his front yard near my house. He looked red as a beet. He had a “For Rent” sign resting on the sidewalk ready for its turn.
Some do indeed skew the numbers (NAR) for their survival.
Co-worker of mine is trying to sell a condo and buy a house. Wanted to sell the condo, then rent until she could find a house - this being the smarter thing to do.
RE Agent told her to put the condo up for sale AND for rent at the same time and see which hits first (my first question is “Do you want to be a landlord??”). And of course, start looking for and buy the new place now, don’t wait until the other one is sold. That would be foolish. So, this is what she is going to do because, of course, the RE agent is smart and doesn’t have any personal agenda or investment in making the money off the purchase.
I just bite my tongue these days. There’s no talking sense into these people.
should unit sales be picking up by now ?
at lower prices ,but at least turning over
we’ve gone way beyond the 90’s
and it should take several months to draw the inventory down,’ he said.
B.S. Lawrence Yun, try several years or can’t you count that high!
“‘You can get brand-new houses here for nothing. Nice three-, four-bedroom places for $200,000. There is a real opportunity,’ said Glenn Williamson, CEO of the Phoenix-based Canada Arizona Business Council.”
I don’t think most people would refer to $200,000 as “nothing”. Especially when it involves a rapidly depreciating asset like a house in Phoenix, AZ.
Yeah I caught that one too. 200k will seem like a fortune again. It’s mind numbing how the RE crime syndicate and banksters/fraudsters were able to get 40k/yr wage slaves to toss around big numbers like nothing. 2001-2005, J6Pack was a gazillionare with an empty bank account. 2006-2020 J6pack recalls in embarrassment how he talked like a man with a paper @sshole.
Ah, yes, but you see, when you come from a *really hot market* like Saskatoon….200,000 is nothing, a mere bagatelle.
Honestly, it has to be something we put in the water.
200,000 is also the population of Saskatoon, and it’s surrounded by empty land for at least 400 miles in every direction.
I’m sure no one in PHX is in any kind of a condition to turn away perfectly good customers? I know “I” wouldn’t. At this rate it won’t be long before Phoenix has a hockey team. Whatever will they call them?
The Roasted Ducks
….Gooood.
They’ll have to start importing Kokanee Ale and having logging competitions! ( Actually I love Canada ) Most Chicagoans are big hockey fans anyway.
OMG Phoenix in the summer is frick’in hell. It sure ain’t Sasktoon. My son has been there for four years and well this last week they were going on 10+ days of over 112 degrees and it’s ONLY June. He and the wife are almost at the end of dealing with it. Heard murmurings of returning to CA. Location, location, location….to quote some realwhores…….
I used to live in Saskatoon at one time.
And yes, a number of people here in Saskatchewan are currently looking at buying retirement homes in Phoenix metro. I should know, my dad is one of them. He can afford it, but I think there will be better buying opportunities in PHX in a couple of years. He isn’t retiring immediately anyway.
Huh, Ben really stays on top of the news, even up here in Canuck land…
Meh. Equity locusts are equity locusts, doesn’t matter if they’re from Cali or Canada. Gonna be the same pain felt by all speculators in AZ.
Q: What would a moose look like if you took it away from the frozen tundra, shaved it and left it standing in the Arizona desert for a couple of years?
A: Canadian Bacon.
Flew out of Phoenix airport yesterday, and from my bird’s eye view, saw some toxic green backyard pools. Also saw acres of graded lots where development appears to have stopped in its tracks.
“…The average price of a Lennar home in the fiscal first quarter fell 8.3 percent to $278,000 from a year earlier and the company sold the most homes in Arizona, Colorado and Texas. The median U.S. new home was $231,000 in May.”
Hey crispy, did Lennar ever build that x1 home building permit they pulled last year in Bakersfried?
That & Sir Greenspent’s hidden “Box Index” are just keeping me in suspense.
Pretty shity ending for a real estate romance novel, Babs.
“Barbara Corcoran: ‘I have a solution, and it’s a fall-back solution, but it sure gets attention. You can make an appointment, or not make an appointment, go over there with the deed to your property and the keys to your front door and say, OK, I’ve had it. Here’s my deed, here’s my keys, and you’ll get attention.’”
“King: ‘Is this a good time to sell a house?’ Corcoran: ‘Of course it’s not a good time to sell a house. The question is, if you must sell a house, how do you unload it?’”
We’ve helped millions of people in good times and bad.’”
“A subdued Angelo Mozilo got choked up and meant to say We’ve helped drain millions of people out of their hard earned money in good times and bad”.
“A subdued Angelo Mozilo got choked up and meant to say We’ve helped drain millions of people out of their hard earned money in good times and bad”.
The only millions of people he’s drained out of their hard-earned money are TAXPAYERS who will have to pay for Frank-Dodd+Obama
FBs with no-money-down and teaser rates wouldn’t know hard-earned money if it bit them in the ass.
“We’ve helped millions of people in good times and bad.’”
“We helped ourselves to reach internal sales goals by directing people into bad loans that paid us huge commissions”
“Even groups in Arizona working with low-income buyers or sellers, or those stung by predatory lending companies, welcome the influx of homebuyers from Canada. ‘Right now, we see it as a good thing,’ said Mayra Khunpannya, a counsellor with the non-profit group Acorn Housing.”
So Acorn believes speculation that keeps home prices from falling further is a good thing for affordable housing?
acorns a big time commie group- they want the taxpayer to buy a house
Every liberal plan I’ve seen to create “affordable housing” will make housing more expensive…
Ah, that’s the beauty of their plan, you rich folk subsidize housing to make them “affordable” for the less fortunate, and keep prices up all at the same time. When it doesn’t work(because it never does) blame someone else, the usual suspects, the evil rich. Get re-elected and wash, rinse and repeat.
BTW… What in hell is affordable housing?
Un-subsidized properly collateralized (20% down, or 2 months security deposit) market rate housing.
If it’s not affordable, people won’t rent/buy it.
Such plans have to be. How else to tax the shit out of everyone to fill your own populist coiffers?
“Barbara Corcoran: ‘I have a solution, and it’s a fall-back solution, but it sure gets attention. You can make an appointment, or not make an appointment, go over there with the deed to your property and the keys to your front door and say, OK, I’ve had it. Here’s my deed, here’s my keys, and you’ll get attention.’”
That is sound advice with Countrywide. As long as you are current on payments with them, you will get no action.
“King: ‘Is this a good time to sell a house?’ Corcoran: ‘Of course it’s not a good time to sell a house. The question is, if you must sell a house, how do you unload it?’”
A very blunt assessment and the truth.
There’s only one solution, Babs darling. Lower the price.
Muah, muah, darling, don’t let the door hit your bony ass on the way out.
You know, I don’t get it. If they have the foresight to see that they can’t afford their reset in August, what about six months ago? a year ago? how about when they took the loan out? How come they know NOW they can’t afford it, but didn’t think of that when they took the loan out?
Oh yeah, because their house was supposed to triple in value over the 3 years of ARM; so they were going to refinance into a
-1% supermagicloan before then and use the proceeds to buy granite countertops, gucci handbags and crate and barrell furniture. I just have a hard time believing this crap.
If I were countrywide, I figure that the loan is going to lose money one way or the other. they’ve already sold it so it might be cheaper just to let it fail rather than spend all this time on a workout. Might as well let them wiggle on the hook and try hard to ’save’ their credit for as long as possible.
“You know, I don’t get it. If they have the foresight to see that they can’t afford their reset in August, what about six months ago? How come they know NOW they can’t afford it, but didn’t think of that when they took the loan out?”
I seem to recollect Ben posting articles a couple years back quoting FBs who were confident they could handle loan resets. It appeared that most of them had the impression that, say, a 2% interest rate increase on their loan meant the monthly payment would increase 2%.
“It appeared that most of them had the impression that, say, a 2% interest rate increase on their loan meant the monthly payment would increase 2%.”
Ummm, didnt any of them ask for a dollar amount as a rough guide??? No, no, that would be KRAZZZY talk.
SD Greg,
Go over… WHERE!? Calabassas California? Larry did say the call was from Alabama, right? Sure, drive down to your local CountryFried mouse-house and tell some branch mgr. that has already been given a closing date for that office and “threaten” him? With what? Take away his birthday? Make him shave hiz azz and walk backwards?
Axis of See No Evil (until it’s too late)
http://www.huffingtonpost.com/huff-wires/20080330/fed-overhaul/images/f69f3f38-c710-4dcc-8733-d06d8e11bc63.jpg
CA State Attorney General Jerry Brown was interviewed on the local radio today. He doesn’t think the borrowers have any culpability in this whole mess.
I’m all for going after the mortgage companies, but the R-E agents and ALL the people who signed on the dotted line should share in the responsibility. I know these loans were “no recourse” but if there’s any fraud involved, then that goes out the window.
“then that goes out the window”
Well said. Why hasn’t someone brought that up before? One has to wonder just how many frauds are hiding behind that.
This career politician Brown has been as sleep at the switch. He oversaw the mother of the subprimes in CA and did nothing until now. The Ohio AG was the first to bring suit, at least a year ago.
Where was Brown for Ameriquest, NovaStar, Freemont, Golden West …?
Here’s a classic from the Larry King transcript:
King: We have an e-mail question from Debbie in Orlando, Florida: “What’s a family to do if they lose their home to foreclosure? How can they find a suitable place to live? Aren’t they going to be rejected as renters on grounds of poor credit?”
Donald Trump: This is now the time to go out and try making a deal, try buying a house. The banks are there. It’s already financed. You don’t really need the money because it’s already financed. They are already in. They are already wet. I don’t recommend renting now. I recommend now is the time to buy. Buying is much better than renting.
King: Even if you’ve been foreclosed?
Trump: Absolutely. You can make deals. So many people are being foreclosed. Millions and millions of people. It’s no longer got that horrible stigma. This is the time to go out and make a deal. The money has already been put in. It’s not like they are putting in new money. The money has already been put in. They own a house. They want somebody to live in that house.
Trumps right! If Debbie Housflipper thought the house she bought at some bubble price would make her RICH, then the bargain prices today should make her RICHER.
If “Debbie” doesn’t believe this, she’s admitting that the hoped to flip her first home to a greater-fool and just didn’t get out in time.
Truly incredible.
Uh… Donald? Has one of your employees tried to actually secure financing in this meltdown? Get back to me and let me know.
I don’t really think Trumps right! I just think that it’s OK to ask hard questions to people who paid WAY too much for houses that they couldn’t affored.
If they thought they’d make $$$ at bubble prices, than it’s even a better deal today. I don’t think that, but I didn’t decided to buy a house I couldn’t afford 5 years ago.
Your fired.
Actually, the one and only thing The Donald has done well in his career is go broke and stiff creditors. So perhaps he ought to be taken seriously. He’s had the banks in the same situation many times before.
Funny thing about the Trump Tower in Vegas… it would have been built earlier but Trump had all kinds of trouble getting the banks to give him the cash to build it. The development is waaayyy too close to gambling machines for Trump; every time he touches a gambling machine he loses billions (see Atlantic City).
I don’t know what the Donald means by “the banks are there - it’s already financed - the money has already been put in” — it’s like he believes there’s still this wellspring of credit available to folks with subpar credit buying foreclosed — and, accordingly, perhaps subpar — properties.
Are banks actually offering attractive financing on their own forclosure/REO assets? That’s a trend I’ve missed seeing in the dozens of news stories and hundreds of posts I read here every day.
“I don’t know what the Donald means by ‘the banks are there - its already financed - the money has already been put in’…”
These are words meant to persuade, not to inform. These are the type of meaningless but powerful words and phrases hucksters use to put one over on the gullible.
The Truth is to be found in the numbers. The numbers don’t lie.
“‘The allegation offers evidence that Countrywide engaged in a pattern to target minority groups and engage in predatory practices,’ Gov. Chris Gregoire said at a news conference Wednesday… Gregoire said Bank of America’s takeover of Countrywide ‘will not stop our enforcement actions. We want these consumers to be made whole.’”
Go, gov. My mortgage is with Countrywide. I went in wanting a 30 year fixed, and they did EVERYTHING they could think of to get me into an ARM instead. Beginning with saying seriously to me ‘I don’t think that would best meet your needs, but luckily for you we have a variety of products that would be better…’ I laughed in his face, well, smirked loudly in his face; ‘Oh, okay, then! I won’t worry my pretty little girly head, I’ll just trust you, Mr. Big Smart Mortgage Man! You betcha! Just tell me where to sign!’
I had to get quite firm with them towards the end.
Buncha utter and complete assh*les. ASSH*LES.
I’m really sick and tired of this “targeting minorities” angle. What does that say about minorities? That they’re all stupid and incomptent and can’t protect themselves?
Minority, schmority. I think Countrywide targeted everyone their collective nasty little sucking lamphrey mouths got near.
Mozilo and the Orange Lamphreys - what a sucko band!
“The allegation offers evidence that Countrywide engaged in a pattern to target minority groups ”
for all that mozillo and and countrywide have done…that’s the one that’s gonna hang him and probably the only issue that will stick with the MM.
Oh please. Gregoire is the Queen of Darkness, and trying to smear CW with some racial targeting issue is just the sort of tactic she’d stoop to. (And you can bet the WA state courts will back her up, regardless of legal merit.) So glad I got away from the foul stench of the politics of WA.
OT…Home for sale, includes wife…
http://www.abcactionnews.com/news/local/story.aspx?content_id=005201aa-6596-4203-b3e9-a666ae138149
If she didn’t have to pay for her boob job, maybe she could afford her house.
ugh, she looks like a super freak.
She doesn’t seem to realize only YOUNG tramps get to be trophy wives. She needs to up the age of man she’s swinging for to get any marriage play. (Based on the pictures, I’d say she needs to aim for 80+) Or stop being a tramp. I’d bet the former happens and not the latter.
The word disproportionate comes to mind.
Traboscia says she has already been contacted by one man in Italy, who is arranging a trip to South Florida to visit her.
Oh great. Her future: many wild nights spent entertaining various and sundry Cosa Nostra luminaries. When she gets played out they sell her into white slavery to some UAE oildaddy.
Naturally, the house ends up as a REO.
UBS Forsees Bottom
AP ONLINE
Posted: 2008-06-20 12:39:00
NEW YORK (AP) _ UBS Investment Research upgraded Beazer Homes USA Inc., saying the sell-off that has sent its shares tumbling 52 percent from a recent peak in May has been too extreme.
“Given our belief that the company has sufficient liquidity to withstand this downturn, we view the recent pullback as overdone,” analyst David Goldberg said in a note to investors.
Sice UBS knows that Beazer “has sufficent liquidity to withstand the downturn,” they must know the exact time and depth of the crash.
What foresight!
(PS. A year ago BZH traded at about $26.00, today it’s at $5.80.)
since
How many bottom calls have so far proven correct since the onset of the housing crash? (My guess: ZERO.)
Anybody long on the Market?
chick?
she’s over on Bits Bucket right now
Not exactly a Rosie O’Donnel fan here but I have to agree with her assessment of “the DOnald” as a snake oil salesman. Also, since when is Trump the intellectual authority on Real Estate especially considering his record of stiffing investors?
Isn’t stiffing investors one of the requirements for being a RE authority? Just askin’
Doesnt the ability to get financing after stiffing creditors make him the authority?
For a split second Lost in Utah and Tim were one. Talk about a Vulcan mind meld.
WOW!! And I thought that cosmic kinda vibration was from smoking pigweed.
from Montrosepress dot com:
Elderly woman’s house in foreclosure; fraud cited
LONGMONT, Colo. (AP) — Longmont police say a 92-year-old woman’s house is in foreclosure after an acquaintance refinanced it three times and used about $200,000 in proceeds for travel and other expenses.
Eileen Marie Banman of Boulder faces charges of theft and crimes against an at-risk adult. Police say she surrendered on Tuesday and is free on bail.
A man who answered the phone at her home on Thursday said she was not available to comment.
Police declined to identify the victim, saying she was embarrassed.
Investigators say the 60-year-old Banman got power of attorney to help the woman with her affairs after her husband died in 2001. They say she opened credit card accounts and refinanced the house to pay them off.
Police say the expenses included trips to Costa Rica and Puerto Rico and big dinners.
If you are gonna steal, aim higher than Puerto Rico.
Or another way to put it is, if you can’t dream, don’t dream big.
Memo to Uncle Sam: Try not to catch a falling knife.
A housing-rescue bubble
Congress risks the same mistake – giving home loans assuming prices are going up.
from the June 27, 2008 edition
Congress hopes to pass a bill soon that aims to rescue enough at-risk homeowners to put a price floor under a collapsing housing market. In theory, everyone benefits. In practice, well, the rescue plan itself might end up needing a rescue, at taxpayers’ expense.
Lawmakers say they justify putting federal money at risk during this housing recession because a high rate of foreclosures is leaving too many neighborhoods with abandoned and neglected houses – about 19 million – dragging down home prices for others, fostering crime, and eroding the economy.
Also, they say, the Federal Reserve put up risky money in March for an emergency bailout of creditors for Bear Stearns investment bank. If Wall Street’s bacon can get saved, why not Main Street’s?
While those points may well be grounds for federal action, the bill that is likely to pass could end up committing the same mistake careless lenders and borrowers did in inflating the housing bubble: It assumes prices will soon rise and that the new government-backed loans to be negotiated in coming months won’t go belly up. The bill, in other words, sets up Uncle Sam to try and catch a falling dagger.
Here’s the bill I’d support:
1. Federal Funding to assist state LE in prosecuting and fining people in foreclosure who lied on their mortgage applications
2. Federal funding to have the Army Corps of Engineers bulldoze abandoned houses.
“2. Federal funding to have the Army Corps of Engineers bulldoze abandoned houses.”
That would be a waste, as there are plenty of renters who might be interested in joining the Ownership Society if Mr Market were allowed to work his affordability magic.
Not to mention the massive waste of natural resources that went into the houses.
The GSEs must be punished for acting in their shareholders interests, instead of respiking the jumbo lending market as Congress had intended.
Fannie, Freddie Can’t Stop Housing Freefall
Andrew Jeffery Jun 24, 2008 1:00 pm
Looser guidelines fail to create market floor.
Fannie Mae (FNM) and Freddie Mac (FRE) aren’t turning out to be the housing saviors Congress hoped they’d be.
In an attempt to lower mortgage rates and bolster plummeting property values, Congress recently expanded the reach of the two government-sponsored entities (GSEs) to include so-called jumbo mortgages. The plan, pushed through despite heavy criticism, allowed Fannie and Freddie to enter the market for loans beyond their previous limit of $417,000.
Regulators hoped that the GSEs would use this massive influx of cash to thaw the frozen housing market, jumpstarting lending and bringing interest costs down for struggling borrowers. Much to the chagrin of both bureaucrats and real estate lobbying groups, Fannie and Freddie opted instead to improve their own financial condition, rather than that of the American homeowner.