2011 to be record year for foreclosures

[robertsondavies]

Nowhere did that article say that 90% of the mortgages were above water.

It said AT LEAST 10% of them were 25% under water.

So all of the many mortgages 1-24% under water were not part of that 10%.

Now back to the real issue - when the hell are these banks and accountants going to get a flipping clue!!!!

It isn't income until you get paid. It's a debt owed you. 2 very different things.

I think you're reading it wrong. I believe what it says was "of the 6 Million homes" at risk for foreclosure, some 10% of THOSE at risk for foreclosure are 25% underwater on average. So really only 600K homes in this country are now still at risk of foreclosure, and even then the banks only take a 25% haircut, and only on the ones where they actually do end up taking back, and then where no deficiency judgment is sought against the noteholder.

So basically, no big deal, banks in a sloped yield curve environment, such as the one we have, have NO PROBLEM earning their way through whats left of this nightmare. The time to have been scared was 5 or 6 years ago. The Horse be outta da barn now.

 

[30ashopper]

I think you're reading it wrong. I believe what it says was "of the 6 Million homes" at risk for foreclosure, some 10% of THOSE at risk for foreclosure are 25% underwater on average. So really only 600K homes in this country are now still at risk of foreclosure, and even then the banks only take a 25% haircut, and only on the ones where they actually do end up taking back, and then where no deficiency judgment is sought against the noteholder.

So basically, no big deal, banks in a sloped yield curve environment, such as the one we have, have NO PROBLEM earning their way through whats left of this nightmare. The time to have been scared was 5 or 6 years ago. The Horse be outta da barn now.

Of 6 million at risk, 10% are 25% or higher underwater. You're not taking into account everything between 0% underwater -> 24.9% underwater, you're also ignoring the fact that 6 million homes are at risk, according to the article.

There's plenty of data out there on what we can expect in terms of forclosures this year. It's not a pretty picture.

 

[Smiling JOe]

In 2011, 30 year, fixed, interest rates are expected to increase up to about 6%. That is still very low, historically. On a one million dollar home with 20% down, that's a difference of about $6,000 per year. It really shouldn't be much of a factor for high-end homes.

However, when you start looking on the low end of homes, it will affect sales because those buyers are likely already pushing the boundaries of what they can afford. Those people may be more likely to take advantage of lower rates, buying now, rather than waiting until later and finding out they cannot buy.

 

[Smiling JOe]

I read an article this morning stating that banks are now more willing to go through with short sales as the lender stands to profit more from it, since they don't have foreclosure proceedings and since banks are being accused of being foreclosure mills with improper procedures.