Do you mean the home has to actually appraise?
June, 17 at 3:45 pm
Yes, believe it or not, banks are being more careful before handing out the money so people can buy or refinance homes. What a concept!!!
According to the Sun Sentinel:
Real estate agents, mortgage brokers and buyers, as well as homeowners who want to refinance their loans, are feeling the effects of rules designed to prevent inflationary appraisals that helped fuel the housing boom.
South Florida real estate professionals and their clients say the rules contribute to low appraisals, which jeopardize home sales and refinancing applications.
Mortgage brokers and real estate agents are upset because they’ve lost control of appraisals, said Dan Morden, an appraiser in Broward and Palm Beach counties. “That’s a bitter pill for them,” Morden said.
Posted in California Housing Crash, Florida Housing Crash, Real Estate | No Comments »
California is running out of money
June, 17 at 7:42 am
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Posted in California Housing Crash, The Economy, Real Estate | No Comments »
Why high-end homes will continue to go down in value
June, 16 at 3:01 pm
This article on Bloomberg shows you how this is just the beginning in declines for the 1 million plus homes.
June 16 (Bloomberg) — Prices for the most expensive U.S. homes may not reach bottom for another few years, according to JPMorgan Chase & Co. analysts.
“Tighter lending standards and the lack of cheap financing for these borrowers continue to be key issues,” the New York- based analysts wrote, referring to “jumbo” mortgages. That’s after so-called interest-only and option adjustable-rate loans were a “major driver” of soaring values, they said.
“California is probably worse than other states, but higher-priced homes in general are going to be a problem,”
We have seen this here in Southern California where the more expensive homes for sale are just sitting. Sellers are slowly but surely realizing that the high end buyers are not coming back anytime soon and they are starting to lower prices. Here at National Bubble, we expect these home to drop another 30% in the next couple of years. Let’s not forget that all the Obama bailout plans are only helping the lower end of the market. Apparently, there are no bailouts for rich people.
Posted in California Housing Crash, The Economy, Real Estate | 3 Comments »
New housing permit numbers might not be as good as you think
June, 16 at 2:40 pm
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Posted in California Housing Crash, Florida Housing Crash, Real Estate | 1 Comment »
Layoffs at MySpace
June, 16 at 2:37 pm
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Posted in California Housing Crash, The Economy | No Comments »
California’s Financial Meltdown
June, 16 at 2:36 pm
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Posted in Politics, California Housing Crash, The Economy, Real Estate | No Comments »
Credit card defaults skyrocket
June, 15 at 4:54 pm
More signs of a collapsing economy. According to CNBC:
U.S. credit card defaults rose to record highs in May, with a steep deterioration of Bank of America’s lending portfolio, in another sign that consumers remain under severe stress.
JPMorgan Chase—the second-largest U.S. bank and the biggest issuer of Visa-branded credit cards—said its default rate rose to 8.36 percent in May from 8.07 percent in April, but it still holds the best performance among the largest credit card companies.
Posted in Credit, Credit Crunch, The Economy | No Comments »
Typical American mentality: “need help, not my fault, need a bailout”
June, 15 at 2:24 pm
I love the part where she says “I didn’t think I was going to live. I wanted to have a little fun”.
Totally pathetic!!! No wonder we are in this mess.
Posted in The Economy, Real Estate | 1 Comment »
Home prices are back to 1989 levels in some parts of Southern California
June, 10 at 2:45 pm
Interesting article on the LA Times web site:
n parts of Southern California, the housing crash has upended a basic tenet of the American dream: that home values always increase over the long term.
Properties in several areas are selling for less than they did 20 years ago, and that’s not even counting the effects of inflation.
Home prices across most of Southern California have not fallen nearly as far. The median price in the six-county area was $247,000 in April, about what it was in 2002.
But in 14 Southland ZIP Codes, mainly desert communities in the Antelope Valley and Inland Empire, median prices have fallen below levels recorded in April 1989, according to MDA DataQuick, a San Diego real estate information service.
Posted in California Housing Crash, The Economy, Real Estate | 2 Comments »
The American way of people living beyond their means
June, 9 at 2:39 pm
More signs of this bubble economy that is bursting. We have built our prosperity on credit and we are now paying the price. According to this article in the LA Times:
To get cash for business expenses, one-third of California small-business owners took out exotic, high-risk products, such as those that required little proof of income or allowed borrowers to pay so little that their loan balances rose, said accounting Professor Samuel D. Bornstein of Kean University of Union, N.J.
Bornstein, who has studied the issue extensively, predicts the business owners, many now far underwater on their loans, could shed 2.1 million jobs in the state over the next four years, creating even more problems than the initial wave of subprime mortgages.
The idea of using a house to finance a business caught on in the ethnic communities, said Sokhom, 60% of whose clients are immigrants from Asia or Latin America.
“People were saying that if you don’t do it you are crazy, you don’t know what’s going on,” he said. “And they said if you can’t pay when the loan resets, you just refinance again.”
Posted in Credit Crunch, Bailout News, California Housing Crash, The Economy, Real Estate | No Comments »
