http://finance.yahoo.com/news/Mortgage-default-warnings-apf-157937671.html?x=0 LOS ANGELES (AP) -- Banks have stepped up their actions against homeowners who have fallen behind on their mortgage payments, setting the stage for a fresh wave of foreclosures. The number of U.S. homes that received an initial default notice -- the first step in the foreclosure process -- jumped 33 percent in August... [more]
http://finance.yahoo.com/news/Mortgage-default-warnings-apf-157937671.html?x=0
LOS ANGELES (AP) -- Banks have stepped up their actions against homeowners who have fallen behind on their mortgage payments, setting the stage for a fresh wave of foreclosures.
The number of U.S. homes that received an initial default notice -- the first step in the foreclosure process -- jumped 33 percent in August from July, foreclosure listing firm RealtyTrac Inc. said Thursday.
The increase represents a nine-month high and the biggest monthly gain in four years. The spike signals banks are starting to take swifter action against homeowners, nearly a year after processing issues led to a sharp slowdown in foreclosures.
"This is really the first time we've seen a significant increase in the number of new foreclosure actions," said Rick Sharga, a senior vice president at RealtyTrac. "It's still possible this is a blip, but I think it's much more likely we're seeing the beginning of a trend here."
In all, 78,880 properties received a default notice in August. Despite the sharp increase from July, last month's total was still down 18 percent versus August last year and 44 percent below the peak set in April 2009, RealtyTrac said.
Some states, however, saw a much larger increase.
California saw a 55 percent increase in homes receiving a default notice last month, while in Indiana they climbed 46 percent. In New Jersey, where last month a judged ruled that four major banks could resume uncontested foreclosure actions in the state under court monitoring, homes receiving a default notice increased 42 percent.
Banks are now on track to repossess some 800,000 homes this year, down from more than 1 million last year, Sharga said.
The firm had originally anticipated some 1.2 million homes would be repossessed by lenders this year.
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Response by duvravcic
over 14 years ago
Posts: 78
Member since: Jan 2009
Thanks so much for posting this.
Similar situations have happened periodically, in varying magnitudes, in the last couple of years. However, Manhattan has never been hit with these waves of foreclosures at all.
One big reason in my opinion: Because the residential rental market is so consistently strong in Manhattan, if one struggles to make mortgage payments, s/he can easily rent the unit out--usually above cost. In most other areas, however, rental markets aren't nearly as strong.
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Response by w67thstreet
over 14 years ago
Posts: 9003
Member since: Dec 2008
Flmaozzzzz
The rental mkt based on $300k back office banking jobs based on 50x leveraged balance sheet, based on trillions of mbs sold to us taxpayers. A perfect real estate bubble making machine. And when the party is over, the politicians so worried about actually having to balance their budgets, pushes banking regulators to look the other way.
Well apparently if you think your studio is still worth $2mm, and you spend again at victoria secrets for your 1000th thong, then our economy will be just dandy!
I like how a town in Greece with a population of 300 includes 75 who work for the govt!!!! The 're-structuring' is fine. :)
In all my deals on work out loans over the years, exactly 0 turned it around. Flmaozzzz. It always seemed to me the work out groups at banks were more 'unwinding' groups that allowed the dealmakers to collect their bonuses and get out bf the bank wrote off 95% of the loan. If you project that to our nyc re mkt, just letting the smart ones sell and get the fk out. :)
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Response by saiyar1
over 14 years ago
Posts: 182
Member since: Jun 2010
@duvravcic
Apartment easy to rent out in Manhattan? Yes
Can be rented at over cost??? NO.
How can apartments be easily rented above cost with a price to rent ratio of over 25? That's ridiculous otherwise everyone would be buying up apartments.
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Response by duvravcic
over 14 years ago
Posts: 78
Member since: Jan 2009
>Can be rented at over cost??? NO
I thought it was clear from the context, but I guess I should have articulated what "cost" in this context generally means.
Cost = CC + taxes + mortgage (or, if coop, maintenance + mortgage). Rent can easily exceed this figure, unless:(1) you have huuuuuuuuge monthly loan payments; (2) you waaaaaaay overpaid in 2006 or 2007 for a crappy apartment in an undesirable area; or (3) your bldg. has unusually high CC/Maintenance.
I think saiyar1 is confusing cost with return on "investment" (although many don't view apartments as investments). When your focus is on avoiding foreclosure AND you are successfully covering cost, I don't think you would be concerned about the rate of return on your apartment so much...
Thanks so much for posting this.
Similar situations have happened periodically, in varying magnitudes, in the last couple of years. However, Manhattan has never been hit with these waves of foreclosures at all.
One big reason in my opinion: Because the residential rental market is so consistently strong in Manhattan, if one struggles to make mortgage payments, s/he can easily rent the unit out--usually above cost. In most other areas, however, rental markets aren't nearly as strong.
Flmaozzzzz
The rental mkt based on $300k back office banking jobs based on 50x leveraged balance sheet, based on trillions of mbs sold to us taxpayers. A perfect real estate bubble making machine. And when the party is over, the politicians so worried about actually having to balance their budgets, pushes banking regulators to look the other way.
Well apparently if you think your studio is still worth $2mm, and you spend again at victoria secrets for your 1000th thong, then our economy will be just dandy!
I like how a town in Greece with a population of 300 includes 75 who work for the govt!!!! The 're-structuring' is fine. :)
In all my deals on work out loans over the years, exactly 0 turned it around. Flmaozzzz. It always seemed to me the work out groups at banks were more 'unwinding' groups that allowed the dealmakers to collect their bonuses and get out bf the bank wrote off 95% of the loan. If you project that to our nyc re mkt, just letting the smart ones sell and get the fk out. :)
@duvravcic
Apartment easy to rent out in Manhattan? Yes
Can be rented at over cost??? NO.
How can apartments be easily rented above cost with a price to rent ratio of over 25? That's ridiculous otherwise everyone would be buying up apartments.
>Can be rented at over cost??? NO
I thought it was clear from the context, but I guess I should have articulated what "cost" in this context generally means.
Cost = CC + taxes + mortgage (or, if coop, maintenance + mortgage). Rent can easily exceed this figure, unless:(1) you have huuuuuuuuge monthly loan payments; (2) you waaaaaaay overpaid in 2006 or 2007 for a crappy apartment in an undesirable area; or (3) your bldg. has unusually high CC/Maintenance.
I think saiyar1 is confusing cost with return on "investment" (although many don't view apartments as investments). When your focus is on avoiding foreclosure AND you are successfully covering cost, I don't think you would be concerned about the rate of return on your apartment so much...