Foreclosures soar.

[Bindare_Dundat]

Foreclosure filings soared 81 percent last year as mortgage crisis proves worse than expected

By ALAN ZIBEL | AP Real Estate Writer
7:00 AM CST, January 15, 2009

WASHINGTON (AP) — More than 2.3 million American homeowners faced foreclosure proceedings last year, an 81 percent increase from 2007, with the worst yet to come as consumers grapple with layoffs, shrinking investment portfolios and falling home prices.

[Dos Equis]

Yep.

Isle foreclosures soar 230% in '08
By Andrew Gomes
Advertiser Staff Writer

Nearly 3,200 Hawai'i homeowners faced foreclosure last year, a 230 percent increase from the year before and a nearly 500 percent rise from 2006, according to real estate research firm RealtyTrac.


The surge shows that job losses and declining property values that contribute to home foreclosure are taking a heavy toll on property owners.

While the percentage point increases are severe, the level of foreclosures in Hawai'i was still one of the better ones in the country, representing less than 1 percent of homes.

RealtyTrac reported that foreclosure filings, which in Hawai'i affected 0.64 percent of homes, were higher in 33 other states last year.

Worst on the list was Nevada with 77,693 properties hit with foreclosure filings, or 7.3 percent of homes. The state with the fewest properties in foreclosure was Vermont with 137, or 0.04 percent of homes.

Nationwide, about 2.3 million properties, or 1.84 percent of homes, faced foreclosure. That represented an 81 percent increase from 2007 and a 225 percent increase from 2006.

Among the 100 biggest U.S. metropolitan areas, Honolulu had the fourth-lowest level of foreclosures, representing 0.5 percent of all homes.

There were 1,647 Honolulu properties with foreclosure filings last year, up 219 percent from the year before.

Compared with other counties in the state, Honolulu had the lowest rate of foreclosures. The highest was Kaua'i with 1.17 percent of homes, or 331 properties, facing foreclosure.

On Maui, foreclosure filings affected 663 properties, or 1.04 percent of homes. On the Big Island, there were 544 properties facing foreclosure, or 0.72 percent of homes.

Some observers question the accuracy of the reports from California-based RealtyTrac because the company includes commercial property in its count but doesn't collect data from some rural areas.

RealtyTrac said it collects data from more than 2,200 counties nationwide, representing about 90 percent of the U.S. population.

http://www.honoluluadvertiser.com/article/20090115/BUSINESS12/901150314/1071

[240 is Back]

Eviction is all in your head, bitches.

[Soul Crusher]

Eviction is all in your head, bitches.

These homes were never worth the money in the first place.  The prices were based on bogus appraisals, easy credit, fraudulent mortgage brokers, negligent banks, and stupid borrowers.   

[Hereford]

These homes were never worth the money in the first place.  The prices were based on bogus appraisals, easy credit, fraudulent mortgage brokers, negligent banks, and stupid borrowers.   

Truth.

And a whole lot of these forclosed houses were bought as investments.

[Soul Crusher]

Truth.

And a whole lot of these forclosed houses were bought as investments.

I do a few closing a year for clients.  I saw the nonsense that went on.

Here is how it happened, and I am telling you this from inside out:

1.  Applicant goes to mortgage broker with certain financial info and a deal in place to buy a property.   

2.  Mortgage broker knows what he needs to show to justify the price and the loan.  Due to poor application, buyer needs to go to Subprime mortgage with an ARM or some crazy deal.

3.  Mortgage Broker uses appraiser he knows will give appraisal to contract amount. 

4.  Mortgage Broker submits mortgage application with information and appraisal with doctored info to a bank it knows will agree to the loan.   

5.  Bank gets the application and rubber stamps the application since the appraisal comes in.  They dont really look at the income side since they think they are getting a home appreciaiting in value.  they dont really care if buyer defaults since they will get back an asset still appreciating in value. 

6.  Bank does the deal and finances the deal. 

7.  Mortgage broker gets 100% commission upfront.

8.  Bank accepts first six months or year of payments.  Paper is graded as "A" paper since debtor is making payments.           

9.  Bank sells "A" paper to other bank as part of a bug bundle or consolidated "security"

10.  Debtors' rate resets and they cant make payment and defaults. 

11.  Debtor cant sell house and is upside down.  Debtor takes off since there was no down payment and owes more than house was worth.

12.  Bank looks at mortgage paper and realizes that the whole mess was a fraud from day one.

13.  Bank cries to Federal Gov. 

14.  Taxpayer bails out bank.


There are many other steps in this fraud, but I said it while this was happening that this was going to cause a disaster. My friends thought I was insane for my thoughts, but who was right??

most people have no clue how this fraud happened on usch a scale, but I know very clearly how this happened. 

It was not the CRA - that is utter nonsense.

Who do I blame:

1.  Greedy realtors duping people into buying homes they knew they could not afford.

2.  Fraudulent mortgage brokers submitting bogus applications to banks.

3.  Appraisers selling their souls and giving appraisals always at contract price.

4.  Banks for not doing due diligence.

5.  Borrowers for taking on more than they can afford thinking that the home would appreciate at 10% or more a year.

6.  Fannie and Freddie for underwrtinig these fraudulent loans.

   

[MB]

5.  Borrowers for taking on more than they can afford thinking that the home would appreciate at 10% or more a year.

This is the main culprit.  If you can't afford it, don't buy it.  When homes became investments rather than dwellings, greed started to control everything.  I'm not going to blame the banks if somebody borrows over their head to buy a house as an investment and then loses everything.  It is the responsibility of the buyer to understand the loan and borrow within their means. 

[Soul Crusher]

This is the main culprit.  If you can't afford it, don't buy it.  When homes became investments rather than dwellings, greed started to control everything.  I'm not going to blame the banks if somebody borrows over their head to buy a house as an investment and then loses everything.  It is the responsibility of the buyer to understand the loan and borrow within their means. 

I blame the banks for a lot of this.  They gave out money like water and gambled on loans like a casino and lost. 

They assumed the houses would always appreciate in value and always go up and the worst case scenario was that they get back an asset worth more anyway. 

They gambled high stakes and lost big.  Screw em. 

[MuscleMcMannus]

I blame Bush    Minorities don't deserve to own homes in America.  They should be reduced to apartment living. 

[Dos Equis]

I do a few closing a year for clients.  I saw the nonsense that went on.

Here is how it happened, and I am telling you this from inside out:

1.  Applicant goes to mortgage broker with certain financial info and a deal in place to buy a property.   

2.  Mortgage broker knows what he needs to show to justify the price and the loan.  Due to poor application, buyer needs to go to Subprime mortgage with an ARM or some crazy deal.

3.  Mortgage Broker uses appraiser he knows will give appraisal to contract amount. 

4.  Mortgage Broker submits mortgage application with information and appraisal with doctored info to a bank it knows will agree to the loan.   

5.  Bank gets the application and rubber stamps the application since the appraisal comes in.  They dont really look at the income side since they think they are getting a home appreciaiting in value.  they dont really care if buyer defaults since they will get back an asset still appreciating in value. 

6.  Bank does the deal and finances the deal. 

7.  Mortgage broker gets 100% commission upfront.

8.  Bank accepts first six months or year of payments.  Paper is graded as "A" paper since debtor is making payments.           

9.  Bank sells "A" paper to other bank as part of a bug bundle or consolidated "security"

10.  Debtors' rate resets and they cant make payment and defaults. 

11.  Debtor cant sell house and is upside down.  Debtor takes off since there was no down payment and owes more than house was worth.

12.  Bank looks at mortgage paper and realizes that the whole mess was a fraud from day one.

13.  Bank cries to Federal Gov. 

14.  Taxpayer bails out bank.


There are many other steps in this fraud, but I said it while this was happening that this was going to cause a disaster. My friends thought I was insane for my thoughts, but who was right??

most people have no clue how this fraud happened on usch a scale, but I know very clearly how this happened. 

It was not the CRA - that is utter nonsense.

Who do I blame:

1.  Greedy realtors duping people into buying homes they knew they could not afford.

2.  Fraudulent mortgage brokers submitting bogus applications to banks.

3.  Appraisers selling their souls and giving appraisals always at contract price.

4.  Banks for not doing due diligence.

5.  Borrowers for taking on more than they can afford thinking that the home would appreciate at 10% or more a year.

6.  Fannie and Freddie for underwrtinig these fraudulent loans.

   

Good summary.  What a mess.   

[Soul Crusher]

Good summary.  What a mess.   

These idiot banks are looking for the taxpayer to prop up their gambles gone bad.  Screw em. 

Put these houses up for auction and whatever they go for sell them to people who can afford them and want to live there. 

[Eyeball Chambers]

These idiot banks are looking for the taxpayer to prop up their gambles gone bad.  Screw em. 

Put these houses up for auction and whatever they go for sell them to people who can afford them and want to live there. 

Average citizen makes a bad investment and they're screwed.  These jackass's do and they get a bail out.

Infuriating

[Dos Equis]

These idiot banks are looking for the taxpayer to prop up their gambles gone bad.  Screw em. 

Put these houses up for auction and whatever they go for sell them to people who can afford them and want to live there. 

I agree.  That's what should happen. 

The banks suck.  Our government (on this issue) sucks.  It would be nice to have the government step in and pay my mortgage.   

[Soul Crusher]

Average citizen makes a bad investment and they're screwed.  These jackass's do and they get a bail out.

Infuriating

The taxpayer should not prop up the house of cards. 

The average paycheck does not afford the average house. 

These homes should go to people who need housing and can afford it.  These greedy slobs running the banks are still trying to get the taxpayer to cover the fraudulent paper these homes are securing.

I'm so sick of this garbage. 

I work for myself:

no pension, no benes, no vacation, no bailouts, no cola, no automatic raises, no sick days, etc.

No one is bailing me out for having a horrible 2008.

Screw the banks and govt.  Let them both suffer.  Leave the taxpayer alone.