WOT 5-31-2008
Mr Mortgage-CA Housing Crisis - 4.25 Year of Supply!
Here are some interesting housing related news stories for you:
Killer Bees and the Housing Crisis
Sales of foreclosures are on the rise
Buffett: Banks Are to Blame For Subprime Debt Crisis
California screaming: Tales from the housing bust
Lenders try to help homeowners in trouble but is it too little, too late?
Here’s a comment from one person at the end of the article about the forclosure show:
“The reality is that Florida once again is a investor dream for the foreclosure market..homes that were selling for $1.2M can’t be given away for $700K..the $700K homes behind the precious gates filled with people who wanted to keep themselves from a certain kind..are now finding themselves looking at those kind of people moving in for a bargain of $450K…I don’t blame people for taking advantage of the market..that is why they call them INVESTORS..and banks are finally willing to start DUMPING the inventory at bottom prices..and seller are short selling their lives away..”
Good articles. From the California Screaming one:
The point is that the real estate market is murky, not liquid and fast-moving like, for example, the S&P;500. It will be hard to spot the bottom when you get there. “People ask me how they’ll know when its okay to get back in,” says Thornberg. “Simple. When prices stop falling for six months.”
[From: Sales of foreclosures are on the rise - Edited for hilarity]
Kirby Palmer, a clinical social worker who owns a home in Claremont, decided to buy an REO house in northern Rialto in January to flip as part of his retirement strategy.
The lender required a 10% down payment, as well as six months’ worth of mortgage payments and the construction costs upfront at 13% interest for a six-month loan.
All told, he put up $64,000 on a $238,000 house.
The property had been stripped of all copper wiring and the air-conditioning unit.
“I went in the first day with my sons and had to kick out a squatter,” Palmer said.
He put it back on the market at $349,000 in March but has had no offers yet.
“If it doesn’t sell, I can rent it out and wait for the market to bounce back,” he said. “It’s not a huge risk.”
From the California Screaming link:
‘Manley won’t slash his price, he says, “out of respect for the neighborhood.”’
How long until that crap stops? No wonder it takes so long for price discovery.
What happens when “the neighborhood” becomes Little Tijuana plus squatters?
Mr. Mortgage really, really needs to put together some charts and graphs.
From Sales of foreclosures are on the rise.
“We’re seeing as many as 35 offers on a piece of property now in Fontana”
Confirmation that we have more to go.
bloodbath
Oh, and IrvineRenter, don’t forget “Cold times in a desert boomtown”:
http://www.latimes.com/business/la-fi-laquinta2-2008jun02,0,1250917.story
Same story, different names, and the beginnings of understanding that things aren’t going to return to the Good Old Days any time soon.
good clip.
wow! thanks of the video.
good video
We’ve put together a collection of foreclosure help blogs started by people that are actually facing foreclosure now, and they’ve found some pretty ingenious ways of pulling through and surviving—truly inspiring.