It’s The American Way
The Contra Costa Times reports from California. “The high level of foreclosure sales in California has to continue before the state’s housinge market can make a strong recovery, the chief economist for the California Association of Realtors said here Wednesday to more than 700 Realtors from Contra Costa County. ‘We’ve had a very deep decline in the median price, which has spurred sales in distressed properties,’ Leslie Appleton-Young said. ‘Everybody’s looking for a bargain … The faster we work through these foreclosures, the better off we will be.’”
“That is already happening. Almost six out of ten existing houses and condos sold in Contra Costa County in September had been foreclosed on during the past 12 months, according to MDA DataQuick.”
From Reuters. “Foreclosure activity in September rose 21 percent from a year earlier but fell by double-digits from the prior month as some state laws slowed the foreclosure process, according to RealtyTrac. a California law that requires lenders to make contact with borrowers at least 30 days before filing a Notice of Default took effect in early September. The state saw a drop 51 percent from the previous month, according to RealtyTrac.”
“‘Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed down the pace at which lenders are moving forward with foreclosures,’ said James Saccacio, RealtyTrac CEO.”
From Bloomberg. “Six states accounted for more than 60 percent of defaults in the third quarter, led by California with 210,845 foreclosure filings, more than double the amount from a year earlier, according to RealtyTrac. California had six of the 10 metropolitan areas with the highest foreclosure rates in the quarter, led by Stockton, where 3.69 of the housing units received a default filing in the quarter. Riverside-San Bernardino ranked third, Bakersfield was fourth, Sacramento was seventh and Fresno and Oakland ranked ninth and 10th, respectively, RealtyTrac said.”
The Press Enterprise. “‘It is hard to see if the law is just delaying foreclosure or helping people to permanently avoid it,’ said Daren Blomquist, spokesman for RealtyTrac.”
“Since the Federal Deposit Insurance Commission took control of IndyMac in July, it has adopted a systematic plan for modifying troubled loans in that company’s portfolio, said Dustin Hobbs, spokesman for the California Mortgage Bankers Association. It is uncertain how many other institutions may develop loan modification strategies of their own, Hobbs said. And he said there are many other factors that also could influence foreclosures, especially the economy.”
“‘We don’t know what the economy will look like next week, not to mention long-term,’ Hobbs said.”
From CNN Money. “Because so many mortgages are packaged into securities and sold, it is often the investors who call the shots. ‘I am just bombarded,’ said Leeann Simpson, a senior loan officer at American Security Financial in Modesto, Calif. But so far, most of the lenders or servicers holding the existing loans aren’t ready for the program or do not understand it yet, she said.”
“‘It is not an overnight process,’ says Heidi Lawler, president of Affinity Homeloans in San Diego. ‘It is taking anywhere from three to five months for the current lender to decide with the investors whether they will do a write down.’”
“Not everyone will qualify for the program. ‘Our phones have been going crazy,’ said Anthony Logan, president of Group Capital Mortgage in Cerritos, Calif, a participating lender. ‘Everyone just automatically thinks they are qualified [for the program] because their home is upside down and their payments just went up, and that is not necessarily the case.’”
The North County Times. “The county will receive $48.5 million in federal grant money to boost the local housing market, largely by buying and selling foreclosed homes, county officials announced this week. ‘It’s a nice chunk of money, but not a huge amount relative to the county’s total foreclosure problem,’ said Gene Wunderlich, chairman of the Southwest Riverside County Association of Realtors. ‘I think it’s probably best to use it with first-time home buyers. As affordable as prices are, it’s really an opportunity for a lot of folks to get into the market who haven’t done so before.’”
The Recordnet. “City Hall intends to flip houses, using $12.1 million from the federal government to buy and restore abandoned or foreclosed homes, then sell or rent them out. San Joaquin County is to receive $9 million from the program for properties in unincorporated county and in cities other than Stockton. It was unclear how many home purchases those allocations might fund.’
“‘It’s a drop in the bucket … but you don’t look a gift horse in the mouth,’ said Jonathan Moore, chief deputy director of the county Community Development Department.”
The Milpitas Post. “A Milpitas home gained attention from local television stations last week after the people that lost the home to foreclosure trashed the house and the front yard. The deposed owners left trash, clothes and other items strewn throughout the home’s front lawn, driveway and garage. Some of the windows were boarded up, and the front window had an unfriendly spray-painted message to the bank. The inside of the house was left in even worse condition, with holes in several walls, destroyed carpets and cabinets, garbage spread throughout and more spray-painted messages.”
“Upset neighbors said that the home had been poorly maintained for years. ‘This is not something new. They’ve been living like that for a while I think,’ neighbor Winston Wheaton said. ‘This is just messy. It’s nasty. This is not a way to handle being kicked out of your house. Sometimes, if you’ve got to leave, it’s best just to leave.’”
The Sacramento Bee. “As property tax bills land in mailboxes across the region, county assessors are reporting record numbers of complaints and assessment appeals from homeowners who assume – in the midst of a declining housing market – they’ve been overbilled. State tax codes are fairly rigid and probably due for some change, said Jenine Windeshausen, Placer County treasurer and tax collector.”
“‘I would love it if tax collectors had the opportunity to change the due date. I mean, ‘Merry Christmas and Happy Tax Time!’ Windeshausen said, referring to the current tax bill due dates.”
The Merced Sun Star. “When Joseph Thome of Los Banos got his property taxes in the mail this year, he was stunned — it had been raised. Despite reductions in home values nearing 40 percent across the county this year, Thome saw his home value increase. As he looks around all he sees are housing prices tanking. Houses that sold for $400,000 in 2005 are selling for half that today. It doesn’t add up that his house is worth more this year, he said.”
“‘The assessor shows that my house is worth more now, this year, than it was last year,’ said Thome. ‘And the year before the same thing happened.’”
The New Times SLO. “The recent arrests of the mother-and-son leaders of the bankrupt Paso Robles-based Estate Financial firm were met with cheers from many of the hundreds of local investors who have been battling for months to get some of their collective millions back.”
“Yet the Estate Financial news was only the latest in a series of grim headlines alleging wrongdoing in a highly specialized and little-known area of finance known as hard-money lending. Tom Poole of the California Department of Real Estate, has spent 24 years in the department, first as an investigator and now as the agency’s spokesman. ‘It does seem to be, for the moment anyway, concentrated in your area,’ Poole said.”
“‘I’m guessing you’re in an area with a lot of wealthy retirees,’ Poole said. Hard money loans were attractive to retired investors because they promised high returns of about 12 percent per year, and they were paid in monthly installments.”
“Builder Brad Cross invested hundreds of thousands of dollars in Real Property Lenders and Estate Financial He said when certain brokers started to cut regulatory corners, competition may have driven others to follow. ‘It was kind of a slippery slope here,’ he said, ‘All of these brokers all knew each other and they were all competing for the same borrowers. One would cut corners and others would follow.’”
The Oroville Mercury Register. “Umpqua Bank CEO Ray Davis, who stopped in Chico Wednesday on a circuit tour of branch cities, gave a brief description of how the financial trouble developed with the ‘perfect storm’ of the housing crisis, investment bank turmoil and economic downturn. Davis stressed that it wasn’t a California or U.S.-only problem, but a global one.”
“‘I don’t care what office you held, nobody but nobody would have ever predicted this housing crisis would have gone as steeply down as this one has, and stayed down as long,’ he said.”
“Attributing the housing crisis to ‘greed,’ Davis admitted that ‘it’s the American way.’”
The Bakersfield Californian. “McAllister Ranch could become part of a liquidation bankruptcy case Thursday, court papers filed late Wednesday afternoon indicate. Recent filings also show companies owed money by SunCal want to know what happened to a $144 million ‘dividend’ payment to SunCal subsidiaries and/or its president in 2006. One lawyer says the money was probably used for cruises, charter flights and other extravagances during the real estate boom.”
“Firms have been jilted for more than $46 million, court filings show. Even Sequoia Sandwich Co. — owed $611 — is listed on paperwork that names dozens of creditors. ‘They almost put me out of business,’ said John Scripter, who owns Lancaster-based Masonry Plus. ‘This has been a very hard thing.’”
“Attorney Craig M. Rankin of Los Angeles…represents a core group of unpaid construction firms. When asked what became of the $144 million, Rankin said it was likely spent on cruises and private planes — ‘what rich people do’ with money, he said. ‘It’s the epitome of the go-go real estate market of 2006,’ Rankin said.”
The Daily Breeze. “Slumping real estate prices and a wave of foreclosures have turned properties ‘upside-down.’ In the case of…a Rancho Palos Verdes house that overlooks the Pacific…the owner owes $1.3 million, but the property is worth much less. Frances Baldwin, a long-time real estate professional, has listed it at $1,099,000, but will likely lower the price much further.”
“Baldwin is trying to satisfy both the owner and the bank through a short sale. Baldwin, a partner and senior loan consultant at Excel Funding Real Estate Loans in Torrance, has shifted her focus to short sales as her loan business has plummeted. ‘The loan part of the business has slowed down by 95 percent,’ Baldwin said. ‘I knew this was coming over two years ago.’”
“Baldwin said she has closed nine short sale transactions, with another 42 ‘in the pipe.’ The short sale process can take six to eight months, which buys the owner time as Baldwin negotiates with the banks and ultimately tries to sell the property.”
“‘It all has to do with the packaging and negotiations,’ Baldwin said. ‘So I’m keeping people in their home without paying mortgage for six to eight months.’”
The faster we work through these foreclosures, the better off we will be.’”
“That is already happening. Almost six out of ten existing houses and condos sold in Contra Costa County in September had been foreclosed on during the past 12 months, according to MDA DataQuick.”
Listen, sweetheart, for ONCE please do your homework.
These foreclosures are only being temporarily removed from the system.
These ‘investors’ that are dumb enough to listen to your drivel believe that these assets are being bought at a 50% discount, instead of the 20% premium that they are actually being sold at.
I also will be happy once the foreclosures have worked through the system. Once this happens, people will be forced to realize that the core issue is affordability, and sellers will have to adjust their expectations.
people will be forced to realize that the core issue is affordability, and sellers will have to adjust their expectations.
I’m still see 1-car garage crap for the low $200’s which is still 2x higher than it should be. Someone fire the first shot already!
I agree. Prices are not where they should be. Despite the double digit price drops of the last year, my realtor friend reports that he is seeing multiple offers at certain price points (even though I feel they have 15% more to go).
3000 squeare foot homes in Rancho Cucamonga were once at 800k, now at 525k. But not too long ago they were 200k, so why all the activity at 525k is beyond me. Let the suckers catch a falling knife.
I think that’s exactly what’s happening. Buyers are thinking hmmm it sold for $800,000 2 or 3 years ago. I’ll buy it at $525,000 because it will be back up to $800,000 in 2 or 3 years.
I don’t know about that…
If you look at reversal trends from past recessions, there are some periods where a home sold for exactly the same price where it was bough at, only 10 YEARS LATER. Prices are not going up anytime soon, which is why all we have is the suckers buying right now. What’s the hurry?
NYC parking prices on the UWS have dropped from $250/month to $160/month in less than three months.
I don’t own a car but they’re handing out the pamphlets at every street corner.
That is great……i still think its $450 or so $550 for a suv they can only park on the first level so its very limited spaces
I remember $199 18% taxes included!!! 9 years ago on e61 and 1st ave.
foreclosures being only temporarily removed from the system
Right, my two “investor” clients both have business plans I don’t believe in at all. (They aren’t in CA, which would be worse.) Most likely outcome: I’ll own both houses. Amen.
The owner-occupiers are all still doing fine at the moment.
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desertdweller (request two days ago),
Town Zip Code PPSF From Peak
Countywide $113 -55%
Calimesa 92320 $146 -61%
Canyon Lake 92587 $130 -58%
Cathedral City 92234 $122 -49%
Coachella 92236 $99 -72%
Dsrt Hot Springs 92240 $76 -62%
Dsrt Hot Springs 92241 $138 -75%
Hemet____ 92543 $82 -71%
Hemet___ 92544 $89 -66%
Hemet___ 92545 $91 -56%
Indian Wells 92210 $247 -55%
Indio____ 92201 $109 -53%
Indio____ 92203 $104 -51%
La Quinta 92253 $145 -60%
Lake Elsinore 92530 $110 -67%
Lake Elsinore 92532 $95 -56%
Palm Desert 92211 $202 -30%
Palm Desert 92260 $153 -48%
Palm Springs 92262 $165 -61%
Palm Springs 92264 $243 -25%
Rancho Mirage 92270 $221 -28%
Riverside 92501 $134 -64%
Riverside 92503 $132 -58%
Riverside 92504 $141 -62%
Riverside 92505 $147 -57%
Riverside 92506 $176 -40%
Riverside 92507 $151 -64%
Riverside 92508 $132 -47%
Riverside 92509 $136 -65%
Thousand Palms 92276 $100 -64%
Median xxxxx $133 -58%
Jas
Dsrt Hot Springs 92241 $138 -75%
That’s gotta hurt
Hi Jas, how about some bay area ones
95014;94129;94582;94086
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SF Chron. data for September are not yet posted. When I get them I will post. This is the link:
http://www.dqnews.com/Charts/Monthly-Charts/SF-Chronicle-Charts/ZIPSFC.aspx
Since you don’t have historical data to compare I will post the declines for ones you are looking for.
Jas
Hey Thanks…
Since I understand you r a deflationist across the board, what factors lead u to that conclusion? you seem to be right when most of us got it wrong… Also what’s up with the Gas prices…Dollar value is way high, oil down; but we still pay $3.5 per gallon…
On another blog Jas calls himself the “Bond Prince”.
The gas prices are about right, now. Before the refiners were taking it in the shorts, now they get their payback even though they are selling less they haave better margins.
The $3.50 is a CA problem. I paid $2.55 today in north FL
On this same blog aladinsane calls himself the “Emperor_Norton” or some such.
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“On another blog Jas calls himself the “Bond Prince”.”
aladinsane, Everyone knows that the Inflationists are lot smarter than the US Treasury bond market.
Regardless of what I call myself, once in a blue moon (99% of the time by my real name only), EVERYONE ON THIS BLOG WOULD FIND OUT WHO UNDERSTANDS INFLATION/DEFLATION and the economy.
Let us see where crude oil ends up during the depression (my forecast was $25) that should be here some time in 2009 and last for many years. Crude will not hit the bottom at the beginning of the depression. I definitely expect $40 in 2010 or before.
Jas
I hate to say this but the more I look at figures like those above I can only draw (2) conclusions:
1) ( This very much is a local/state problem ) sorry!
2) Once the government figured out they were sitting on a powder keg, they had to continue sitting on it until it was plausible to declare it was ALL of our problem!
Had they addressed the issue in ‘05 ( when it was becoming altogether obvious ) there would have been an outcry you could have heard across the Great Plains, through Arkansas all the way to the Gulf!
They said on the radio that some of the inland areas were down 30-40%. In other words, they’re still trying to hide the truth.
[qhote]“Umpqua Bank CEO Ray Davis, who stopped in Chico Wednesday on a circuit tour of branch cities, gave a brief description of how the financial trouble developed with the ‘perfect storm’ of the housing crisis, investment bank turmoil and economic downturn. Davis stressed that it wasn’t a California or U.S.-only problem, but a global one [/quote]
Is it me or does it seem like every CEO, prominent members (former) of the Fed *cough* Greenspan *cough*, and politician is on a huge CYA lecture campaign like this scumbag here? This guy is a CEO of a bank that was probably one of the willful enablers of this mess and he is sitting here saying that noone saw this coming? BS! All of these schmoes have MBA’s and degrees in economics yet tons of people on the ground level like the posters on this blog saw this coming 3-4 years ago!
This is their story and they’re sticking to it.
I picture a well-attended underground conference-call sometime in July 2007 to clarify “the message” going forward from that date.
Amazingly, I think they are all just stupid. (or lazy)
I know one broker that advised in 2006 to not sell your house in California or you would not be able to move back. At the same time advised his son to buy an overpriced POS.
I know a CEO (Bank) that was buying rental property in Las Vegas in 2005.
Between having friends in the business, water cooler talk of instant riches, and the liars in the MSM it would take a sheeple of the entitlment mentality too much work to figure out what bubble heads saw as obvious.
I had a rant on this very topic on Lansner’s blog last night (our time).
Jon was quoting the late Countrywide boss Angelo Mozilo. “No one saw this coming. No one.”
Well WE did.
(And so did Mr. Mozilo, I suspect, based on the amount of Countrywide stock he cashed in while times were good.)
Yeah, Greenie was “shocked and surprised” that CEOs went for short-term personal profits of sometimes $1 MM/week, thereby setting up their employer to fail a few years down the road. What a shocker, Greenie. I’m, like, SOOOOOOooooooo shocked.
No kiddin’!!!
I was screamin’ the same thing.
He looked like a Gordon Gekko 50 years hence. Shriveled and confused.
“Is it me or does it seem like every CEO, prominent members (former) of the Fed *cough* Greenspan *cough*, and politician is on a huge CYA lecture campaign like this scumbag here?”
The ones most responsible for the crisis will blame it on anyone they can, never shouldering any accountability. They will take undue credit for noticing the problem first, proclaim they have the answers, and when they prove to be wrong again, they will pretend to never have suggested such a thing, and take undue credit for something else. These people should be fed to zoo animals.
“‘I don’t care what office you held, nobody but nobody would have ever predicted this housing crisis would have gone as steeply down as this one has, and stayed down as long,’ he said.”
BS, plain and simple BS.
Anyone who did their homework could have figured out that this was going to end badly.
We let clowns like Greenspan today testify that there was no way they could foresee the consequences of their leadership without someone finally calling BULLSH*T during the hearings. Where is the bright light we need to send the roaches scurrying ?
All it took was a day of cursory research to figure out how this mess was to end.
Those who express surprise at this mess are nothing but idiots.
or they are just lying.
“Jerry, just remember, it’s not a lie if you believe it”. George Costanza. LOL
“Those who express surprise at this mess are nothing but idiots.”
I’m tellin’ ya. I wanted to put my fist through the television screen while Greenscum was talking. He’s shocked, I tell you, shocked!
How about a new fall season dateline?
To catch a creditor
LMAO, Not Missing It! Good one!
“‘I don’t care what office you held, nobody but nobody would have ever predicted this housing crisis would have gone as steeply down as this one has, and stayed down as long,’ he said.”
Just goes to show how many ignoramuses are in office or in finance! To include this dickweed.
RE: A Milpitas home gained attention from local television stations last week after the people that lost the home to foreclosure trashed the house and the front yard. The deposed owners left trash, clothes and other items strewn throughout the home’s front lawn, driveway and garage. Some of the windows were boarded up, and the front window had an unfriendly spray-painted message to the bank. The inside of the house was left in even worse condition, with holes in several walls, destroyed carpets and cabinets, garbage spread throughout and more spray-painted messages.”
Somebody needs to call the Emperor’s Frank and Dodd and let them clean up the mess.
Maybe they’ll get it into their heads that this is the type of bagholder shit the US taxpayers end up with for their $700 billion bail-out money.
I recall when a major national home builder told me in early 2005 that the condo market was ‘dead’. Their marketing department told them this.
That others were behind the curve at least three years is…beyond stupid.
Really?!?
1990 wasn’t all that long ago, you know!
LOL! ( Seems like only yesterday )
The 700 Club…
PTL (praise the loan)
“The high level of foreclosure sales in California has to continue before the state’s housinge market can make a strong recovery, the chief economist for the California Association of Realtors said here Wednesday to more than 700 Realtors from Contra Costa County.”
There was an article about the San Diego fire of this time-last year, in today’s L.A. Times.
Of over 1600 houses that burned to the ground, only 100 have been rebuilt…
That blows me away~
aladinsane,
Yeah… that’s called “CTC” ( Cut-the-Check )
Well! Obviously these reimbursed loanowners have seen fit to “invest” their settlement checks elsewhere!? Too funny, thanks.
That stupid quaziannual fire keeps trying to burn down my mom’s house (in Ramona), but the house just keeps standing there and standing there and standing there. I imagine its fireplace as an extended middle finger. It’s like “This is what I do with fires, you beach.”
“‘It all has to do with the packaging and negotiations,’ Baldwin said. ‘So I’m keeping people in their home without paying mortgage for six to eight months.’”
So she is helping these deadbeats build up a reserve? I wonder if the sellers make deals that say they will pay her a commision based on what they are not sending to the bank in the form of the mortgage payment while all the while living free and clear in the house.
“‘We don’t know what the economy will look like next week, not to mention long-term,’ Hobbs said.”
Imagine a never-ending Hobbsian Existence?
Not dissimilar from a Hobbesian existence (the War of All Against All). I have thought of (17th-century) Thomas Hobbes very often during this anarchy, and it makes it easier to understand why people seek salvation from a dictator, whether JM or BO.
“City Hall intends to flip houses…”
Uh-oh.
lmao
How many homes would a flip-flop flip if a flip-flop could flip homes?
Classic!
Get Flipper the RE agent on the line. I think Andi MacDowell’s impersonation of talking to a dolphin in Hudson Hawk should capture the conversation perfectly.
“I feel like a dolphin who’s never tasted melted snow. Eee-eee-eeh, eee-eee-ehh!”
FPSS, you know the answer. A flip-flop would flip as many flops as a flip-flop could flip, if a flip-flop could flip flops.
(I guess you said “homes,” but I like “flops” better.)
The housing market is in the toilet everywhere, except Los Banos-where increases are in the tank…
“When Joseph Thome of Los Banos got his property taxes in the mail this year, he was stunned — it had been raised. Despite reductions in home values nearing 40 percent across the county this year, Thome saw his home value increase. As he looks around all he sees are housing prices tanking. Houses that sold for $400,000 in 2005 are selling for half that today. It doesn’t add up that his house is worth more this year, he said.”
Walk away, walk away, walk away NOW.
These folks have no concept of moving averages, trend lines or anything math related do they?
Even my mom who is a computer programmer needed a refresher on why her house tax “value” could continue to go up even though the market value had turned the corner. At least it only took me 30 seconds to explain it to her. Some folks just never seem to get it.
Most engineers have a great deal of trouble visualizing a million dollars, a billion dollars, a trillion dollars, and then some…
It’s the Law of Large Numbers. They blank out.
It’s just shockin’ ’cause they are freakin’ engineers. They can do surface integrals but can’t do a quick calculation of the rough net worth of the entire US housing market compared to the “bailout” being proposed and divide the two numbers.
Engineers have a problem with anything that challenges the “known”, or their egos for that matter.
I resemble that remark! Don’t patronize us engineers with that generalization. Some of us can’t actually do surface integrals. Disclaimer:I am an electrical engineer so I am not even sure I know what a surface integral is.
A surface integral is granite kitchen counter tops.
CrackerJim must be trying to make a funny.. Surface integrals can be applied to problems in classical electromagnetic theory.
Something I think EE’s should know.
I know I studied them in my Physics classes… don’t know how to use ‘em, but…..
I am an engineer and will take a crack at it. Let’s take some round numbers: 300 million people in the US, 2.5 people per household on average, so 120 million households. Of these, roughly 65% are owner-occupied, or about 78 million. Average house value is roughly $200k, so total value of owner-occupied housing is $15.6 trillion.
This compares with bailouts to date of close to $1 trillion, but little or none of this is aimed directly at mortgage borrowers.
Sheila Bair proposes pissing away $40 billion on the cause, which is 0.25% of $15.6 trillion, which won’t do much to prop up housing values, which have declined nationwide from the peak by what, around 20% so far?
Knowing how to make this calculation and recognize that the effort is futile doesn’t mean you can’t still be disgusted at the moral hazard (even if it helps one undeserving deadbeat, that’s one too many), let alone the unconscionable waste of money. $40 billion would build a LOT of sorely needed infrastructure in this country.
They could easily do the net worth of the entire US housing stock — as a Surface Integral! — if only someone would provide them with a continuous, analytic function representing house-value density in dollars per square mile at every point in the US. And perhaps simplify every state to a rectangle. OK, so they should at least be able to do Colorado, Wyoming and Utah.
On the news in Portland they suggested that many loanowners were confused when their property taxes weren’t decreasing with property values. The reporter suggested that this was because assessed values were considerably lower than market values.
When asked why, then, did property tax amounts go up with increasing market values, only crickets could be heard.
The county tax assessors office had no comment, as they were busy attempting to control a bloated budget.
(okay, I made the last part up)
“On the news in Portland they suggested that many loanowners were confused when their property taxes weren’t decreasing with property values.”
I just got my prop tax bill for 08/09 (portland) and while the assessed value did increase by 3% (this is the minimum and is allowed by law and is intended to be around 80-90% of their estimated market value at the first of each year) the actual taxes only went up 1/2 of 1% (from $3780 to $3800). Now last year the taxes did go up 7.5%, which sucked. But I was relieved this year, and am happy to pay them this year with the small increase - in fairness to the state of Oregon and county of Multnomah, it looks like they reined in overall spending, at least for this year. Yes, Portland housing is going to continue crashing, but not as hard as Cali, NV, AZ and FLA. In fact, Portland was named fourth best city out of 20 by Forbes to weather out the recession (see http:ownaportlandhome.blogspot.com). Seattle was around 8 or 9.
When did he buy? Prop. 13 implications.
“Attributing the housing crisis to ‘greed,’ Davis admitted that ‘it’s the American way.’”
+++++++++++++++++++++++++++++++++++++++++++++++++
let’s try these on for size…
“Attributing the housing crisis to ‘fraud,’ Davis admitted that ‘it’s the American way.’”
“Attributing the housing crisis to ‘stupidity,’ Davis admitted that ‘it’s the American way.’”
“Attributing the housing crisis to ‘unbridled enthusiasm,’ Davis admitted that ‘it’s the American way.’”
“Attributing the housing crisis to ‘incompetent sales people,’ Davis admitted that ‘it’s the American way.’”
“Attributing the housing crisis to ‘uninformed buyers,’ Davis admitted that ‘it’s the American way.’”
“Attributing the housing crisis to ‘government intervention,’ Davis admitted that ‘it’s the American way.’”
and of course my favorite, owing to Jas…
“Attributing the housing crisis to ‘born and bred dopes,’ Davis admitted that ‘it’s the American way.’”
Funny stuff.
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You forgot the “led by Crooks” part. THAT IS THE AMERICVAN WAY!
Jas
How wonderful that the Fed Govt is handing out money to buy distressed properties all over the country. Wonder how much of that will benefit local pols and their contributors? I’m guessing 95+%, with the exception being one or two purchases of property done to “save” some old destitute woman with 6+ cats used as photo opps come election time.
Keep it coming d!ckheads, it all feeds my belief in a pending civil war.
amoney,
Exactly, ( see my post above )
Why wasn’t this handled at the State or even local level? Why did we have to wait until it was a freakin’ global fiasco? Well I don’t know about a civil war but I’ll never put another DIME in a bank.
Oh and I’ll get around to filing my taxes when I get around to it. What a bunch of dickheads.
Several states tried to curb unsustainable lending practices, but were thwarted by federal preemption. The federal government literally told them they COULD NOT REGULATE any bank that operated across state lines. Trouble is, the federal government was preempting state governments with nothing. How can you preempt with nothing? “You can’t regulate because we don’t regulate”? Make-a no sense-ie.
RE: Keep it coming d!ckheads, it all feeds my belief in a pending civil war.
“Thug Nation”-Coming To A Neighborhood Near You!
Got lead?
http://www.pittsburghlive.com/x/pittsburghtrib/news/breaking/s_594853.html
ot, but nevertheless ,it truly pisses me off. Henry Paulson is going to speak at the Reagan Library (Simi Valley, Ca.) on Nov 20th. He should have 3 hots and a cot, not a taxpayer paid trip to speak damage control.
ok, rant off.
Hi All:
Let’s meet up at LJ Quinn’s Lighthouse Pub in Oakland on Saturday, November 8th at 7 PM. I will make reservations if you guys RSVP to BigVHBB at gmail dot com.
Address:
51 Embarcadero Cv
Oakland, CA 94606
Phone Number:
(510) 536-2050
Website:
quinnslighthouse dot com
See you guys,
Big V
Meth-odd actors…
“A Milpitas home gained attention from local television stations last week after the people that lost the home to foreclosure trashed the house and the front yard. The deposed owners left trash, clothes and other items strewn throughout the home’s front lawn, driveway and garage. Some of the windows were boarded up, and the front window had an unfriendly spray-painted message to the bank. The inside of the house was left in even worse condition, with holes in several walls, destroyed carpets and cabinets, garbage spread throughout and more spray-painted messages.”
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There’s a house about 10 miles away from us that is a kissin’ cousin to this Milpitas beauty, both victims of the meth scourge…
Victims?
Maybe I should send the Fed my bill.
I know a chick who won’t buy a house. She’s a real cheepskate.
BTW, I’m doing a phone interview tomorrow morning at 10:30 AM eastern on New York Public Radio. They didn’t say if it was live, but judging from the hosts webpage, it will be. Any suggestions about what I should bring up?
‘It’s your neighborhood, your city, your country, your world, and now your website. Brian Lehrer delves into the issues and links them to real life. Enlighten yourself as host Brian Lehrer puts you directly in touch with news makers and gives them a chance to exchange opinions and ideas with call-in listeners. A seasoned moderator, Lehrer directs a “sane alternative” in talk radio. Whether the topic is New York City’s education or housing policy, the changing face of welfare, or the expanding Chinese economy, Brian Lehrer puts a human face — and maybe even your neighbor’s voice — on the issues shaping your life. Join the Lehrer league and keep informed. The call-in number is 212-433-9692 (or 212 433 WNYC)’
http://www.wnyc.org/shows/bl/
Yes…some ideas
Please bring up…
how all of the “pros” claim that they couldn’t see this coming, while many folks here on your blog did
how all of the “pros” said it would be contained
how all of the “pros” said it was different this time
how homes prices are still out of whack as compared to incomes
how prices were justified by “lack of land”
how are the baby boomers going to buy second homes, now that their 401ks are down 40%
how are the recent college grads going to buy homes without having six figure jobs
how is the economy going to recover if people are out of cash, home equity, credit, etc.
thanks.
how all of the “pros” claim that they couldn’t see this coming, while many folks here on your blog did
I think congress needs to look at the investments of these so called pros to see if they really didn’t see it coming. My guess is Greenspan was all in cash and short the market. Same goes for many others like Mozillo.
Who’s going to be buying the “million” dollar condos?
Wall Street = busted
Euro = busted
British Pound = busted
Chindians = busted
Might be a short interview though if they cut you off.
Tell them that your favorite person in the world is Big V, that I really should commended for my fine posts, and that my boss is a real meanie.
Corrections:
1. This should have been a reply to Ben’s talk-show comment above.
2. should BE commended, BE.
What the?
My post just moved. How is that possible? Before, it was right underneath sold in 04’s post. Now, it’s where it was supposed to be in the first place. How can that happen?
Maybe discuss the typical duration of RE busts - that they do not behave like a stock market bust/recovery? Seems that nowadays while many have come to see that indeed RE prices can go down - they still seem to think that a price recovery will be along shortly.
Okay, IMO
(1) That the $700B bailout is like one peperoni on an extra large pizza.
(2) The invitation for fraud in government agencies flipping houses.
(3) The 2009 option arm resets.
Focus on the option-ARM and Alt-A resets.
We are still looking at one amazing firework show.
Maybe point out how far most regions still are from typical historical levels of valuation?
And (as you love to hammer home to us here), that none of these wonderful government rescue plans has been able to even slow down the on-going reversion to mean?
How about saying the NAR is doing everyone - especially the taxpayers - a favor by spending their own money pursuading FBs that the bottom is near thus they should do whatever it takes to keep up with their house payments.
And don’t forget to say “Cash is king”.
In Latin.
Aureus rex?
Any suggestions about what I should bring up?
How broke the treasury is going to be after wasting a trillion dollars on trying to bail out banks and keep RE prices high.
Tell ‘em I’ll be happy to lend $50K as a first mortgage on any NYC housing unit larger than 250 square feet.
– az_lender
Maybe you can find a chance to point out how foreclosure moratoriums (for example) won’t work to make houses affordable. It will cause people to quit lending because they’ll be breaking 300 years of contract law. The way to make housing affordable is not to prop it up at these unaffordable prices, it’s to let the market collapse to true affordability: 20 percent down, 30 year fixed loans.
I suggest that you question the rationale for any attempts to prop up house values when it was the wildly inflated house values that were the genesis of this train wreck.
Had the prices been allowed to peak and fall based on lending that was tied to actual incomes rather than what was done the entire MBS/SIV/CDO market would not have grown so large nor with so much embedded risk. To try to prop up current prices ignores the underlying problem of unaffordable housing. Are they trying to save the investors who took on the risk in all of these bundled mortgage instruments? I just can’t see how this effort could be sustained when any artificial floor in housing prices is unsustainable, IMHO.
With incomes flat or negative over the last 5-10 years and savings in the US near zero or worse how does propping prices up ease the credit crunch? If banks are tightening lending and moving back to more rational lending practices, who can afford still bubbly prices?
It simply makes no sense. Is it just a ploy to get votes?
Great synopsis, ed. I agree this is one of the most important points to bring up. I would further impress that the creation of well paying jobs is tantamount to an economic recovery.
Perhaps you could ask them to stop referring to people who have mortgages as home “owners.”
Ben
Congrats again on the interview.. in my book, you should be having 5 of them a week given (some) of the clowns the MSM reals out as experts on this subject..
I’m sure you know what to talk about… as painful as this whole thing is, in the end, if it ends up killing “housing” as the primary means to life and wealth, then that’s a good thing I think, long-term for the US.. this should force students to look elsewhere for work and employment which should strengthen our global position on important industries, such as alternate energy etc… far too much of our GDP was wrapped up in trading houses to each other while piling on the debt… the era of being debt junkies maybe (maybe?) coming to an end..
Most important is that prices in most parts of the nation must fall further. Purchase prices are still out of line with rental costs; median prices are too high relative to median incomes. Programs to slow forclosure rates tend to delay this needed adjustment.
Price to income ratios in the context of falling wages.
Affordable housing means the banks need to mark REO inventory to market.
FUNNY STORY…my landlord was an investor in the paso robles company he lost 600k,after i sold my home in 04 for huge bubble profits he told me i was an IDIOT for not putting my money in that firm….you cant lose in cental coast calif real estate he said,meanwhile while renting his 1,000,000 dollar house for 2k a month for the last 4 yrs and watching central coast real estate get hammered(still real high) how much have i saved….at least 3k a month for the last 48 months …..and still watching home prices fall,hopefully back to 1990 levels….our wages sure havent gone up much from the 90s….
Right - have posted before - a good friend on the advice of her kids bought a central coast matchbox house in 05 (ugh) - her kids should pay the depreciation! - oh well
“Everybody’s looking for a bargain … The faster we work through these foreclosures, the better off we will be.’”
Geeze Leslie, you are wrong again… what a surprise.. these arn’t bargains yet you bag of hot air… people buying these prices simply are not paying the immensly damaging bubble prices of yester- year… they are not getting any “bargain” unless they are buying at 1996 or so prices, and we are not there yet, so give it a rest sister… you’re still wrong..
A comment ~
1) As I was listening to PBS radio last night, someone was commenting that “there is too much home ownership in the U.S. right now”. He said that approximately 70% of all Americans are currently home owners. He felt that it’s actually more appropriate for around 60% to be home owners. The other 40% should not be home owners, for one reason or another.
It’s an interesting concept. That leads me to just 1 conclusion: there are too many homes in the U.S. Prices will keep falling until some kind of equilibrium is reached…..
…..and it doesn’t look like it’s hit any time soon.
I used to think that the greater the homeowner percentage the better, but reading this blog daily ahd witnessing the tragic fruition of that goal has completely changed my mind.
I recall in recent years that most Californians (don’t know the national statistics) move every three or four years. Given transaction costs, unless we have appreciation like in the crazy years this is no longer functional. Thank God.
Renting can be a rational, guilt-free decision and rents also don’t always go up!
“The entire grant must be spent so that it benefits those with annual incomes less than 120 percent of the area median income, which is $53,300 for a family of four, county officials said.”
“Additionally, at least 25 percent of the grant funds must be used to house those who earn less than 50 percent of the median income.”
“The county’s First Time Homebuyers Program is reserved for those who earn less than 80 percent of the area median income, and the grant will provide more than four times the program’s budget for this year, Freeman said.”
How is this any different from “affordable” housing programs during the bubble? Those with higher incomes can still buy and overpay. Those below the median may get some help. This still leaves a massive donut hole in the middle of people that cannot afford to buy. Why not let market forces drive down prices so more can buy and fewer overpay?
If the concern is about units being vacant, let prices fall faster so they are purchased and reoccupied sooner. Let the lenders and the investors take a well-deserved bath as prices collapse.
Will 24 october 2008 be a repeat of 24 october 1929.. stay tuned.. look at the asian markets
Um, well, yes. The sun will rise. One of the Lost will go to work (the grandson) and the little Losts will go to school.
Will the stock market collapse? Maybe. Will stock shoot to the moon on the back of hyperinflation? Maybe.
Nothing is safe and rather than have a bunch of little bits of risk, there are massive risk bombs everywhere.
I’m always amazed that homeowners don’t know how Proposition 13 works. Most people who purchased their houses prior to 2003 will see no reduction in their property taxes because the assessed value of their homes is still lower than the much-reduced market value. Only housing purchased 2004 and later will see reductions in their assessed value, and in a lot of neighborhoods it won’t be much of a reduction.