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privatecash
1429 Posts |
 Posted - 05/13/2008 : 6:43:47 PM
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"Foreclosure flood: 1,000 auctions per day in California
California's foreclosure crisis passed another ominous milestone in April, when more than 1,000 foreclosed homes were auctioned off every weekday at courthouses across the state, the auction tracking firm ForeclosureRadar reported today.
The April total of foreclosure sales at auction -- 22,838 for the state -- represents a jump of 44% over March totals and the highest level ever in California, ForeclosureRadar reports.
A separate estimate of foreclosures by DataQuick Information Systems had counted 47,171 foreclosures in the first quarter, a rate of more than 500 per day from January to March. The new statistics show every category of foreclosure statistics rose in April.
It appears the pipeline of potential foreclosures is jampacked, too: the ForeclosureRadar reported 44,101 new "Notices of Default" filings in April, a new record for California. Notices of Default are the first step in the foreclosure process.
"We expected a significant increase in auction sales based on previous default patterns," said Sean O'Toole, founder of ForeclosureRadar. "Unfortunately, the continued increases in defaults tell us that the worst is still ahead."
As lenders grow more desperate to avoid taking possession of foreclosed homes, they are offering bigger discounts at courthouse auctions, with "discounts of 40% to 50% from prior sales price common in many parts of the state," ForeclosureRadar reports. Still, the auctions are usually uneventful, and usually do not attract serious bids. "The majority of these sales received no third-party bid and reverted back to the lender despite the largest across-the-board discounts ever offered at trustee sales auctions," ForeclosureRadar reported."
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BankNegotiator
52 Posts |
Posted - 05/13/2008 : 7:50:00 PM
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I knew that "Mr. Mortgage" guy on YouTube was right on.
He's been right on every call he's made so far. Watch out for the Alt-A Meltdown set to hit starting this fall and continue rolling over the nation through 2011.
Watch EVERYTHING that guy puts out. It's the freakin truth. |
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rad
1370 Posts |
Posted - 05/13/2008 : 9:50:48 PM
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He's got a nice new haircut:
http://www.youtube.com/watch?v=LCW4A0ACDKM
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mantixmortgage
2541 Posts |
Posted - 05/13/2008 : 9:57:33 PM
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quote:
Originally posted by BankNegotiator
I knew that "Mr. Mortgage" guy on YouTube was right on.
He's been right on every call he's made so far. Watch out for the Alt-A Meltdown set to hit starting this fall and continue rolling over the nation through 2011.
Watch EVERYTHING that guy puts out. It's the freakin truth.
yea but a lot of it is just common sense...
although i did watch his alt-a meltdown video and enjoyed it. but its nothing anyone else hasnt thought of already |
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rad
1370 Posts |
Posted - 05/13/2008 : 9:59:46 PM
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quote:
Originally posted by mantixmortgage
but its nothing anyone else hasnt thought of already
Unfortunately the world isn't as enlightened as you, mantix.
Could you imagine that dude going on CNBC daily? |
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rtrefflich
2458 Posts |
Posted - 05/13/2008 : 10:57:36 PM
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That would not be a pretty sight.
quote:
Originally posted by rad
quote:
Originally posted by mantixmortgage
but its nothing anyone else hasnt thought of already
Unfortunately the world isn't as enlightened as you, mantix.
Could you imagine that dude going on CNBC daily?
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richrano
245 Posts |
Posted - 05/13/2008 : 11:10:18 PM
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| I hate cinnamon in my toothpaste |
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darkstar
15162 Posts |
Posted - 05/14/2008 : 04:08:45 AM
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| Man oh man, CA is the place to be, you all have all the opportunity in the world out there...I may have to move... |
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rad
1370 Posts |
Posted - 05/14/2008 : 06:32:13 AM
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| Yep, it hasn't been this interesting in a long time. |
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rad
1370 Posts |
Posted - 05/14/2008 : 06:35:21 AM
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JoefromPhilly
436 Posts |
Posted - 05/14/2008 : 06:40:22 AM
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The sooner all these bad loans foreclose, the faster the market will get to a bottom, and have prices stabilize. Then, this market will return and lenders will be able to have secondary market interest in buying loans again, and more loans will be made.
The folks who are losing their homes will just have to rent and then accept the fact that they can only afford homes that can be paid back based on documented income.
This correction in prices is similar to what happened way back in the 80's I believe, when the IRS extended the depreciation schedule for investment properties to 27 or 30 years from what I believe was only 15 or something. It made investment properties worth a whole lot less, as investors would use the depreciation to create a loss for tax purposes, and with the tax rates where they were, it let them absorb a lot of negative cash flow, as their tax rebate against their wage income would make them whole. When the depreciation schedules were extended, they could not make that up, and thus properties that were sold at prices that created negative cash flow just sat until prices dropped in markets across the country. Once this new baseline in prices was reached, investors jumped back into the rental property market. The same will eventually happen in the mortgage and residential property markets.
- Joe |
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