Archive for the ‘mortgages’ Category

a short sale is a preferable for a number of reasons.

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same stuff, different year.  The government may as well indemnify the banks against any further prosecution.

…here’s a compiled list (reported to be all?) of the programs aimed at helping the banks and homeowners in the housing crisis.  And yet, the crisis is still ongoing.

I, too, have been surprised there hasn’t been a tsunami of foreclosures.  Perhaps my error was one of not understanding the totality of the system.  I suspect there has been a wave of defaults the data may not show yet; however, they are not foreclosures and the wave probably won’t be seen because of “system bandwidth“.

The folks who’s business it is to track trends say they have no idea.  Here’s my two cents: if you’re buying for the long term, rates are incredibly favorable.  However, make sure the market you’re in is the right one.  E.g., Colorado Springs not Las Vegas.  The former has a high occupancy rate and homes are selling in under 24 hours.  The numbers have been stable, too.  The latter has a massive overhang of houses and a lot of underwater homeowners which can only translate to downward trends in prices.

some supporting data. All markets are local but taken as a whole, it’s going to be a while before we see prices rise.  There are two other points that bear repeating: 1) your home is NOT an asset unless it is generating revenue and 2) the historical appreciation on housing is ~ 3%.  Keep these things in mind when buying.

Most people who have done any analysis on the topic of the government’s (and industry’s) response to the housing crisis would say that it has been…lacking…to say the least.  They will probably categorize the response as terrible.  I am sure I have done so, too.  However, the truth is (IMHO) a bit more nuanced.   I think the response has been both lacking and terrible…on purpose. 

I say all that to say the bottom is nowhere in sight.  While I am not a conspiracy theorist, I do think that many individual actors acting at the same time in accordance with what they perceive to be their best interests will appear to be a conspiracy.  Along those lines, the end is nowhere in sight because “they” don’t want it to be.  Until such time as positive, direct action is taken to alleviate the toxic debt referenced in the preceeding link, nothing will change.

Looks like Fannie and Freddie are taking steps to do the right thing. Six years too late for most, but it will help a few.

 

Via BrokenCredit. Short sales under HAFA will now be reported as paid in full. That’s a great step forward in achieving equilibrium…of course, its just under this program and it’s taken six years to get even this much.

 

…in what may be the most seriously depressing characterization of the housing market, Robert Shiller says we may ‘never’ see a rebound in housing prices.  Some of his past predictions have been wrong but the man does make a living studying the housing market.  I do think we are far, far from any time of massive recovery.  For millions of people, that will mean default, short sale, or foreclosure.