Almost 50% of all Residential Mortgages will be Underwater by 2011 »
Posted By altnrg 3 months, 1 week ago in News
Negative equity is driving the continued rise in bank repo homes, according to Deutsche Bank analysts. They predicted that 48 percent of all mortgages will be underwater by 2011.
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CHAM3 months, 1 week ago
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I have to disagree with this assessment although it might be forced by Banks looking at good returns if they can get some kind of Taxpayer Bailouts ( not the ones now in work ).
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In fact this announcement might be a trial balloon attempt to manipulate the market thru fear. It will be a coordinated attack by Financial Interests. It means profits for them and grief for the ordinary taxpayer.
If the market is left alone, by 2011 the recovery will be well on its way and there will be less homes underwater then, than there is now.
That is my prediction for 2011.-
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Natureboy3 months, 1 week ago
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"If the market is left alone, by 2011 the recovery will be well on its way and there will be less homes underwater then, than there is now.
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That is my prediction for 2011"
It's possible that by that time runaway hyperinflation will make homes worth many times the unpaid balance on their fixed rate mortgages.
That's stepping in a big steaming pile of "recovery." And its highly likely. Be careful what you wish for!
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beavith13 months, 1 week ago
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based on feelings.
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the numbers don't lie. the mortgages written in 2006 and 2007, with 5 year balloons will come due thanks to the nature of the contract.
its not a trial balloon to get bailouts. its a heads up that trouble is brewing.
what happens between now and 2011 that will allow the economy to improve? the liquidity crisis rolls on with CDO and CDS liability at greater than $40T.
the system is still WAYYYY broken. distracting the nation with cap and trade and universal health care is just that. a distraction.-
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DarkWizard3 months, 1 week ago
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beavith1,
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You and I rarely agree on politics or economics, but in this case I have to agree with you as it is the same thing I've been preaching for over a year. And, you are right, the numbers don't lie...in this case.
The system is way broken and I believe the projection to be accurate if not conservative.
Now, my take on this crisis is that an equilibrium is trying to be met between the amount of loans going underwater and real wages. This ties directly to annual housing increases through 2003-2004 (before they flattened out) and the combination of unemployed and real wages having been stagnate for 70% or greater of the population since the 70's.
Yes, the CDO and CDS liability has become a major concern, but these instruments only accelerated the direction our economy was already headed.
Were we disagree is that universal health care is merely a distraction. I still believe it is an essential piece of the puzzle for a real recovery from the economic tsunami we may be facing. But, make no mistake...it is only a piece as the system is WAYYYY broken!
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Mannix2009Comment removed: Spammer, Hard Banned3 Replies
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btombradford3 months, 1 week ago
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I see this problem from the inside looking out. I am in housing retail in DFW Texas area i see people trying to downsize immediately into manufactured housing. they plan to get into the lower payment home then turn around and file BK on there existing debts knowing that they have the small home setting on some relatives private property has there backup to ride the recession out. i have seen this more in the last 2 months more than ever. it seems like everyone is coming to me with the same story. lots of Debt ratio, No equity in present home. they will have 5,000 to 10,000 to put down with a credit score of 600 to 620 right there on the verge. Predict lot of homes in texas going down since the energy market took a plunge. no recover here until 2012.
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Painesright3 months, 1 week ago
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This is an excellent 60 Minutes report on the coming second wave of foreclosures in 2009/2010.
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Anyone who watches it won't be surprised when the foreclosures keep coming and coming.
http://www.youtube.com/watch?v=iUuROWEMjm0
We are not in a specific kind of credit crisis... we are in the BEGINNING of a national debt CATASTROPHE.
Too much individual debt, corporate debt, municipal debt and federal debt.
And higher taxes, more regulation and uncontrolled spending are only going to make it worse.
Worth watching! -
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BjornAntonioComment removed: Retracted by user
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bluekrypton3 months, 1 week ago
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The housing market is still some way from recovering. I submitted a story yesterday that lsts 7 reasons why the housing market hasnt recovered:
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http://www.propeller.com/story/2009/08/10/house-pr...
The real problems will come when interest rates rise. This combined with rising unemployment wil cause real problems. -
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CHAM3 months, 1 week ago
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I didn't see anything about the banks walking away from mortgages. Anyone read or watch any of that scam?
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Seems the banks foreclose, and yet don't foreclose. The get the homeowner evicted, don't complete the ownership transaction, and the next thing the dispossed former, but now current homeowner, finds out is that since he has been dispossed, he is liable for all taxes, etc, etc, that have accrued to the property since he was kicked out. One couple this morning on TV was talking about how the Judge told them they owe all the money that has been levied - SINCE THEY WERE KICKED OUT. The only ownership thay have had seen losing their home is the taxes the ban didn't pay AFTER they lost their home. Judge said it was all perfectly legal.
Meanwhile the banks have had to hire money counters to figure how much their share of the robbery of the general American Taxpayer comes to.
And profit was had by all - all the rich and powerful that is.
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