Tuesday , 28 April 2015
Home » Housing Crisis

Housing Crisis

Wanted for Creating the Boom: Too Much Credit, Not Collateral

crazy-criminal_gg60204188

  Surplus credit created by the widespread securitization of mortgages and loser lending standards is the primary factor responsible for the housing boom ten years ago, not a loosening of collateral requirements for mortgages that are associated with higher initial loan-to-value (LTV) ratios, multiple mortgages on the same property, and expansive home equity lines of credit, according to a new ... Read More »

Spring is Here and Banks Clean House(s)

spring-cleaning

  Foreclosures soared in March, jumping 20 percent from a 104-month low in February increasing for the first time on a year-over-year basis in four and a half years, since September 2010. Foreclosure filings hit a total of 122,060 U.S. properties with foreclosure filings in March, according to RealtyTrac’s quarterly foreclosure report. The increase was driven primarily by a jump ... Read More »

HELOC Resets? No Worries!

noworries

Perhaps you’ve seen the headlines crafted to conjure up fearful memories of Alt-A and Option ARM loan defaults during the depths of the housing depression. Tidal wave of HELOC resets about to hit! HELOC Resets Will Undermine Any Housing Recovery. Boom-Era HELOC Resets Raise Concerns. Not to worry.  Home Equity Line of Credit (HELOC) resets are not going to cripple the housing ... Read More »

Figuring Out Florida

florida

From the dawn of the housing crash in 2006, Florida’s real estate economy has stood out from the rest of the nation, sometimes acting as a bellwether of things to come, like the explosion of small investors and foreign investors who put a floor under plunging values in 2009 and 2010. At other times, Florida has been a throwback to ... Read More »

Distressed Discounts Dwindle, Sales Skew up and Median Price Rises

prices

The U.S. median home price in February increased 14 percent from a year ago but was flat from the previous month to $183,000.The median sales price of distressed homes — those in the foreclosure process or bank-owned — increased 13 percent from a year ago to $127,000, 33 percent below the median sales price of non-distressed properties, $190,000 according to ... Read More »

Bubble Trouble? Prices Outpace Wages

wages3

Over the past two years, home price appreciation has outpaced wage growth in 76 percent of U.S. housing markets and appreciation nationwide has outpaced wage growth by a 13:1 ratio, but the price hikes have been fueled by non-traditional buyers like investors and international buyers, according to a new RealtyTrac study. Wages up 1.3 percent, home prices up 17 percent ... Read More »

Lower Income Homeowners Face Negative Equity Forever

Budgeting burdens

  First came the news that last fall saw an uptick in negative equity.  Now Zillow has found that most low end homes, including those already underwater, are losing value, not gaining as one would expect with the tight supplies of entry-level properties.  Suddenly negative equity is no longer yesterday’s news.  Its a huge threat to the entry point for ... Read More »

Underwater Homeowners Took a Dip in Q4

Couples performing underwater at Weeki Wachee Springs near Brooksville

For the first time in years, the number of homeowners who owe more on their mortgages than their homes are worth actually increased on a quarterly basis rising 3.3 percent in the fourth quarter of last year, a sign of the weakness of the recovery in the waning months of 2014. Despite a strengthening economy and tight mortgage underwriting standards ... Read More »

Striking Out Again and Again

Umpire-Strike-Out

Spring training has just started but thousands of homeowners are already striking out for the second time. Black Knight reports that in January foreclosure starts reached at 12-month high. Repeat foreclosures were up 11 percent month-over-month and made up over half of January foreclosure starts; first-time starts were up just 0.33 percent. The month’s data showed that both first-time and ... Read More »

1.8 Million Bubble-Era HELOCS Could Bust

iStock_000020398578Medium

More than half, 56 percent, of the 3.3 million Home Equity Lines of Credit scheduled to reset over the next four years with fully amortizing monthly payments replacing interest-only payments are on properties that are seriously underwater, according to a new report from RealtyTrac. With no equity remaining in the Bubble-era HRLOCs, the risk is high that the resets will ... Read More »

Earn a 25% Commission Rebate on Any Home Purchase!

Hide