Damn...this ain't good....57% is a HUGE number.
As well as bank repossessions are double the same time last year....despite the Feds giving $billions away to the banking system.

Bloomberg.com: Worldwide

I'm wondering if I could buy foreclosures off the bank for pennies on the dollar and rent them or flip them. Renting would seem more likely since people don't want to buy, and I don't really have the disposable capital to just sit on houses and wait for the market to improve. I'd imagine you can find a way to make the best of any economic situation in the country at large.

__________________
"Government big enough to supply everything you need is big enough to take everything you have... The course of history shows that as a government grows, liberty decreases."

-Thomas Jefferson

Be careful dude....rental bad debt is high as well.
I have two friends that have over 50 properties each...they have been bitching for months about late/no payments.

It is a story I have been looking for - but so far none seems to have surfaced.

This week the fed will tell banks to go ahead and buy loans at the new conforming rate- Jumbos will now be guaranteed up to 730.000 ..what does this do for these folks? Not sure…..well if some are really close to the bone and can get a better rate of an over 419K mortgage that might save some folks…but subprime , nada..

You must have documented income and not in arrears to get these new loans….
I don’t need it due to no payment, but a better arte, hell yea, wtf its my money too..

__________________
No individual can plan his own existence in their view.

So the state planners must arrogate to themselves the right to manipulate any sector of the economic system if the good of “society” or the “general welfare” is paramount.

Ipso- if the rights of the individual get in the way, the rights of the individual must be sublimated.

The Road to Serfdom
FA Hayek (interpretation)


Mortgage Backed Security survivor

yes hedge funds are heavy into that.....I and a few friends are exploring this avenue.....we will howvere be sittig on them a bit.

__________________
No individual can plan his own existence in their view.

So the state planners must arrogate to themselves the right to manipulate any sector of the economic system if the good of “society” or the “general welfare” is paramount.

Ipso- if the rights of the individual get in the way, the rights of the individual must be sublimated.

The Road to Serfdom
FA Hayek (interpretation)


Mortgage Backed Security survivor

I probably wouldn't try it unless the prices were absurdly discounted and I could find properties without structural damage from neglect. My plate is pretty full right now for moonlighting as a landlord. A buddy of mine does this kind of thing for a living - I'd probably be more inclined to invest in what he's doing. I do believe this housing downturn is being kind to him because he buys little houses/apartments and rents them to section 8 tenants. They pay so little that it's basically irrelevant whether or not they send him a check - he mainly depends on checks from the government.

__________________
"Government big enough to supply everything you need is big enough to take everything you have... The course of history shows that as a government grows, liberty decreases."

-Thomas Jefferson

you capitalist pigs...

__________________
No individual can plan his own existence in their view.

So the state planners must arrogate to themselves the right to manipulate any sector of the economic system if the good of “society” or the “general welfare” is paramount.

Ipso- if the rights of the individual get in the way, the rights of the individual must be sublimated.

The Road to Serfdom
FA Hayek (interpretation)


Mortgage Backed Security survivor

Hmm... let me know how that treats you, if you don't mind.

__________________
"Government big enough to supply everything you need is big enough to take everything you have... The course of history shows that as a government grows, liberty decreases."

-Thomas Jefferson

He has stories that would make you cringe. I guess SOP is for the tenants to pay like $100 or their total rent, but one of his tenants was like some kind of super welfare case, and the government picked up the entire tab. He called to tell her that she wouldn't need to pay rent, and she said "Nice! I can get a flat screen TV!"

__________________
"Government big enough to supply everything you need is big enough to take everything you have... The course of history shows that as a government grows, liberty decreases."

-Thomas Jefferson

dude we have title 8 housing out here and I can relate...

__________________
No individual can plan his own existence in their view.

So the state planners must arrogate to themselves the right to manipulate any sector of the economic system if the good of “society” or the “general welfare” is paramount.

Ipso- if the rights of the individual get in the way, the rights of the individual must be sublimated.

The Road to Serfdom
FA Hayek (interpretation)


Mortgage Backed Security survivor

will do....katrina presents is own set of advantages and opportunities......"go zones" that are like 30% federally funded..loans at cut rate etc.

__________________
No individual can plan his own existence in their view.

So the state planners must arrogate to themselves the right to manipulate any sector of the economic system if the good of “society” or the “general welfare” is paramount.

Ipso- if the rights of the individual get in the way, the rights of the individual must be sublimated.

The Road to Serfdom
FA Hayek (interpretation)


Mortgage Backed Security survivor

well thought it time for an update...last time we checked congress was ready to bail everyone out. I can attest to fannie mae now extending its self to providing guarantees for a new jumbo conforming loan ceiling @ $729,250.00. I am re-fing what I owe again, 5.78 30 year fixed. Hot damn, what a dream eh?
As much as I am loving this, its completely ludicrous. But as I will wind up paying for this in higher taxes as the dopes who cannot read a contract get bailed out on our nickel, screw it, I am not going to be left out.

Anyway, below is a blurb on housing prices falling like a rock....if anyone has the cash and portfolio resources to do it, I suggest waiting till august then jump in and buy property, the rates the price you’ll never see its like again, be on it.



Single-family home prices tumble in March By Joanne Morrison
1 hour, 23 minutes ago



WASHINGTON (Reuters) - Prices of single-family homes plunged a record 14.4 percent in March from a year earlier, while consumer confidence slumped to its lowest in 16 years in May as gasoline prices surged.


The Standard & Poor's/Case Shiller composite index of 20 metropolitan areas released on Tuesday showed prices of previously owned homes fell 2.2 percent in March, deepening their year-on-year decline.

Separately, the Conference Board said its consumer confidence index slumped to 57.2 this month from 62.8 in April as rising gasoline costs and falling home prices made Americans increasingly nervous both about current conditions and the future.

In one positive sign, however, the Commerce Department said sales of newly constructed single-family homes rose in April for the first time in six months, while the inventory of unsold new homes declined for the 12th straight month. But the previous month's decline was even steeper than first reported.

"In terms of prognosis, there remains no reason for the situation to stabilize and every reason for it to continue to deteriorate yet further with price declines accelerating yet further," said BNP Paribas economist Richard Iley.

Prices of U.S. Treasury securities fell on Tuesday, weighed by ongoing concerns about inflation amid persistently high energy prices. U.S. stocks were slightly higher and the dollar rose against major currencies.

Falling home prices have led to a wave of foreclosures that is expected to grow worse before it gets better. The crisis in foreclosures, which pressure prices even lower, has spurred plans by regulators and lawmakers to keep borrowers in their homes by forgiving a portion of their loan principal.

Housing markets that grew the most during the housing boom, such as Las Vegas, Nevada and Miami, Florida, are leading the decline, S&P said. A separate S&P index of prices in 10 metropolitan areas declined 2.4 percent in March for a record 15.3 percent year-over-year drop.

"The key to any degree of stabilization in the house market is, of course, the balance between supply and demand, specifically a reduction in the unprecedented inventory overhang that is pressuring prices lower," Iley said.

NEW HOME SALES RISE

In its report, the Commerce Department said sales of new homes rose 3.3 percent in April to a 526,000 annual rate. However, they were down 42 percent from a year ago, the largest year-over-year drop in nearly 27 years.

While April's sales gain was the first since October, it followed a drop in March that was much sharper than previously reported. Sales in March fell 11 percent; a month ago the department had said they were off just 8.5 percent.

"It is premature to call the bottom for housing," said Ken Mayland, economist with ClearView Economics, near Cleveland.

Despite the lingering weakness in sales, the report showed a sharp pullback in construction activity by builders was helping to reduce the backlog of homes on the market.

The inventory of homes available for sale at the end of April fell 2.4 percent to 456,000, the 12th straight monthly decline. That represents 10.6 months' supply at April's sales pace, down from 11.1 months' worth in March.

The housing markets' continued woes have been one factor weighing on consumer confidence. The Conference Board's gauge of sentiment has dropped by almost half since July, when housing troubles triggered the most severe credit crisis in at least a decade.

Consumers this month grew both more worried about what is happening now and about the future. The present situation index dropped to 74.4 from 81.9, while the expectations barometer fell to 45.7 from 50.0.

Inflation expectations rose to an all-time high 7.7 percent, well above April's 6.8 percent, the Conference Board said.

Single-family home prices tumble in March - Yahoo! News

__________________
No individual can plan his own existence in their view.

So the state planners must arrogate to themselves the right to manipulate any sector of the economic system if the good of “society” or the “general welfare” is paramount.

Ipso- if the rights of the individual get in the way, the rights of the individual must be sublimated.

The Road to Serfdom
FA Hayek (interpretation)


Mortgage Backed Security survivor

Commercial property as well...we are buying a new location right now...we were looking to wait till October, but pushed ahead..in this area commercial properties are about 55% the cost of building...unheard of.

wow 55% man of man....who needs to lease rent to buy baby.

__________________
No individual can plan his own existence in their view.

So the state planners must arrogate to themselves the right to manipulate any sector of the economic system if the good of “society” or the “general welfare” is paramount.

Ipso- if the rights of the individual get in the way, the rights of the individual must be sublimated.

The Road to Serfdom
FA Hayek (interpretation)


Mortgage Backed Security survivor

For once in my life I may end up timing things well. In the market to buy my first home, probably in September of this year. Will have some CDs coming due then, and car payment completed. I'm shopping for a 20% down, fixed rate, 20 year mortgage. As longs as things don't do completely tits up it may work out well.