Good news. We're at the tail end of a wave of subprime resets.
Bad news. Round Two of approximately $230 billion in resets that will hit home within the next year. Alt-A mortgages and Option ARMs.
The most opportunistic forecast I have seen is a 20 percent reduction in foreclosures for 2009 considered a “good year”.
Add 750,000 in the active REO database. 17 percent of the inventory of existing homes for sale reported by the NAR in June. So we know that number is too low, let's add 8% to get to One in Four.
At current levels, there are more foreclosed homes than new homes sold in this country.
25 percent of all sales will be foreclosed home sales, selling at a deeper discount to the market at an average of 33 percent discount to today's prices compared to 20 percent the previous year.
Builders can only compete with REOs by building custom from scratch rather Regardless, builders can't afford to compete against foreclosures at 40 percent to 50 percent off.
Pushing REOs through the FDIC-Asset Manager-Realtor pinhole is hardly any answer at all.
To Shoot The Messenger, aim at the stockings. :angry:
Bad news. Round Two of approximately $230 billion in resets that will hit home within the next year. Alt-A mortgages and Option ARMs.
The most opportunistic forecast I have seen is a 20 percent reduction in foreclosures for 2009 considered a “good year”.
Add 750,000 in the active REO database. 17 percent of the inventory of existing homes for sale reported by the NAR in June. So we know that number is too low, let's add 8% to get to One in Four.
At current levels, there are more foreclosed homes than new homes sold in this country.
25 percent of all sales will be foreclosed home sales, selling at a deeper discount to the market at an average of 33 percent discount to today's prices compared to 20 percent the previous year.
Builders can only compete with REOs by building custom from scratch rather Regardless, builders can't afford to compete against foreclosures at 40 percent to 50 percent off.
Pushing REOs through the FDIC-Asset Manager-Realtor pinhole is hardly any answer at all.
To Shoot The Messenger, aim at the stockings. :angry:
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