Thursday, January 18, 2007

Foreclosures Continue to Rise

From CNN/Money, the latest foreclosure numbers are out. For the month of December, the Sunshine State rates the following:

#12 in rate of foreclosures - 1 in every 878 households. (Colorado is #1 with 1 in 376)


#3 in total foreclosures - 8,321. (Texas is #1 with 14,195)


'NEW YORK (CNNMoney.com) -- Americans continue having difficulties paying their mortgage obligations, with December foreclosure rates above the 100,000 mark for the fifth straight month.

The number of homeowners entering into some stage of the foreclosure process in December was 109,652, down 9 percent from November but up 35 percent from December 2005, according to RealtyTrac.'

You just KNOW that toxic mortgages (interest-only, balloon payments, ARMs, etc...) has been a huge contributor to this malaise. Well, that and prices that have levelled or declined.

'Adjustable-rate mortgages, especially subprime ARMs, continue to drive the spike in foreclosures: many of those loans are due to reset in 2007, and many of the loans written in 2006 are performing less well than in previous years.

The combination of slower home sales and rising interest rates on ARMs continues to drive foreclosures at significantly higher numbers than a year ago," said James J. Saccacio, chief executive officer of RealtyTrac.

Other circumstances are involved. One is that the housing market turned, removing one avenue of escape for some homeowners facing foreclosure. "People would be reselling their homes if they got into trouble," says Rick Sharga, VP of marketing for RealtyTrac.

When they can't sell at or above what they owe, they may go into delinquency instead.'

No! Really?!!! (okay, I'll get that smirk off my face)

Full Article (with foreclosure numbers for all 50 states)

53 comments:

CRAZY G said...

Jerry!!

Foreclosure is only half of the answer....
The house is NOW owned by somebody else, and is empty!!!!
An auditor friend of mine, said that they[US Gov.] don't get after the banks until it's approaching 5 years....

MY QUESTION, BEFORE, CURRENTLY, AND IN THE FUTURE, IS STILL THE SAME.....

WHAT'S GOING TO HAPPEN TO ALL THE EMPTY HOUSES.....
THERE ARE PLENTY OF EMPTY HOUSES NOW, AND THERE MAY BE MORE ON THE WAY!!!!

Anonymous said...

I was surprised to see that we're #12, but then again, a lot of owners are able to bail before the foreclosure process actually starts.

CRAZY G said...

SOO!!! Evenutally it's going to get sold.....Then the question becomes to whom????
For that answer we turn to the NAR, who did a study of home buyers last year!!!!
==================================

CHARACTERISTICS OF HOME BUYERS
• The median age of home buyers was 46 years old. Among first-time buyers, the median
age was 34.
• The median household income of home buyers was $66,900 compared to $71,800 in the U.S.
• 70 percent of home buyers reported that there were no children under age 18 residing in
the home.
• 59 percent of home buyers were married couples, 18 percent single females, 11 percent
single males, and 9 percent were unmarried couples.
• First-time home buyers accounted for 29 percent of homes purchased in 2006.
• 42 percent of first-time home buyers were between 25 and 34 years old.
• The median income of first-time home buyers was $56,500 compared to $58,300 among
all first-time buyers nationally.
CHARACTERISTICS OF HOMES PURCHASED
• 71 percent of homes purchased were detached single family homes.
• The typical home buyer purchased a home 18 miles from their previous residence.
• The median price of homes purchased was $217,600 compared to $214,000 in the U.S.
• The typical buyer purchased a home that was 1,729 square feet in size.
• Recent home buyers plan to live in their home a median of 6 years.
THE HOME SEARCH PROCESS
• Recent home buyers searched for a home for a median 8 weeks and saw a median 8
homes.
• 88 percent of home buyers used a real estate professional during their home search.
• 51 percent of home buyers used the Internet frequently to search for homes.
• Among home buyers, the typical Internet searcher was 42 years old and visited a median
8 homes. The typical home buyer that did not use the Internet to search for homes was
55 years old and saw a median 4 homes.
• 42 percent of home buyers first learned about the home they purchased from a real estate
professional; 15 percent first learned about the home they purchased through the Internet.
• 65 percent of buyers viewed the Internet as a very useful tool in their home search.
• 66 percent of buyers rated real estate agents as a very useful information source

CHARACTERISTICS OF HOME BUYERS
• The median age of home buyers was 46 years old. Among first-time buyers, the median
age was 34.
• The median household income of home buyers was $66,900 compared to $71,800 in the U.S.
• 70 percent of home buyers reported that there were no children under age 18 residing in
the home.
• 59 percent of home buyers were married couples, 18 percent single females, 11 percent
single males, and 9 percent were unmarried couples.
• First-time home buyers accounted for 29 percent of homes purchased in 2006.
• 42 percent of first-time home buyers were between 25 and 34 years old.
• The median income of first-time home buyers was $56,500 compared to $58,300 among
all first-time buyers nationally.
CHARACTERISTICS OF HOMES PURCHASED
• 71 percent of homes purchased were detached single family homes.
• The typical home buyer purchased a home 18 miles from their previous residence.
• The median price of homes purchased was $217,600 compared to $214,000 in the U.S.
• The typical buyer purchased a home that was 1,729 square feet in size.
• Recent home buyers plan to live in their home a median of 6 years.
THE HOME SEARCH PROCESS
• Recent home buyers searched for a home for a median 8 weeks and saw a median 8
homes.
• 88 percent of home buyers used a real estate professional during their home search.
• 51 percent of home buyers used the Internet frequently to search for homes.
• Among home buyers, the typical Internet searcher was 42 years old and visited a median
8 homes. The typical home buyer that did not use the Internet to search for homes was
55 years old and saw a median 4 homes.
• 42 percent of home buyers first learned about the home they purchased from a real estate
professional; 15 percent first learned about the home they purchased through the Internet.
• 65 percent of buyers viewed the Internet as a very useful tool in their home search.
• 66 percent of buyers rated real estate agents as a very useful information source

CHARACTERISTICS OF HOME BUYERS
• The median age of home buyers was 46 years old. Among first-time buyers, the median
age was 34.
• The median household income of home buyers was $66,900 compared to $71,800 in the U.S.
• 70 percent of home buyers reported that there were no children under age 18 residing in
the home.
• 59 percent of home buyers were married couples, 18 percent single females, 11 percent
single males, and 9 percent were unmarried couples.
• First-time home buyers accounted for 29 percent of homes purchased in 2006.
• 42 percent of first-time home buyers were between 25 and 34 years old.
• The median income of first-time home buyers was $56,500 compared to $58,300 among
all first-time buyers nationally.
CHARACTERISTICS OF HOMES PURCHASED
• 71 percent of homes purchased were detached single family homes.
• The typical home buyer purchased a home 18 miles from their previous residence.
• The median price of homes purchased was $217,600 compared to $214,000 in the U.S.
• The typical buyer purchased a home that was 1,729 square feet in size.
• Recent home buyers plan to live in their home a median of 6 years.
THE HOME SEARCH PROCESS
• Recent home buyers searched for a home for a median 8 weeks and saw a median 8
homes.
• 88 percent of home buyers used a real estate professional during their home search.
• 51 percent of home buyers used the Internet frequently to search for homes.
• Among home buyers, the typical Internet searcher was 42 years old and visited a median
8 homes. The typical home buyer that did not use the Internet to search for homes was
55 years old and saw a median 4 homes.
• 42 percent of home buyers first learned about the home they purchased from a real estate
professional; 15 percent first learned about the home they purchased through the Internet.
• 65 percent of buyers viewed the Internet as a very useful tool in their home search.
• 66 percent of buyers rated real estate agents as a very useful information source


http://www.floridarealtors.org/LegislativeCenter/Research/upload/2006%20Profile%20of%20Home%20Buyers.pdf

=================================

CHOOSE TO BELIEVE WHAT EVER YOU WANT..."BUT" anonymous posted above is probably the same snipe, that said they were leaving and not coming back!!!!

CRAZY G said...

WHOOPS!!!

I think I double posted that somehow.....

SORRY ABOUT THAT!!!!

Anonymous said...

The Center for Responsible Lending had this to say:
==================================

The Center for Responsible Lending estimates that 2.2 million American homeowners will likely lose their homes via foreclosure. Default rates are terrible in many regions of the nation, not confined in any way since a systemic problem. One in five subprime mortgage customers who purchased homes in the last two years is likely to enter foreclosure, amounting to 1.1 million people. The most alarming conclusion made from the study, after analysis of more than six million mortgages since 1998, is that the risk of default is independent of the credit score of the borrower. The failures are occurring regardless of income and past credit history. In 1994, only 5% of mortgages underwritten were risky subprimes. Now the subprimes comprise over 25% of the mortgage industry, totaling over $600 billion in 2005. Abuses of negative amortization, piggyback loans to cover down payments, and other stretched deals are discussed in the January Hat Trick Letter report, as are the key specific factors tipping homeowners over the edge into foreclosure. The most dangerous bank system risk might not be the failures so much as the skewed internal underwriter risk controls, and policy for loan loss reserves. Piggyback loans are insane since they directly enabled loans which would not have been approved. They are called “silent seconds” since their loan-to-value lenders only report the first mortgage. Mortgage industry data is thus skewed and biased. Shocks are next

Anonymous said...

Michael Hudson’s "The New Road to Serfdom: An Illustrated Guide to the Coming Real Estate Collapse" (Harpers, May 2006).

Although home ownership may be a wise choice for many people, this particular real estate bubble has been carefully engineered to lure homebuyers into circumstances detrimental to their own best interests. The bait is easy money. The trap is a modern equivalent to peonage; a lifetime spent working to pay off debt on an asset of rapidly dwindling value. Most everyone involved in the real estate bubble thus far has made at least a few dollars. But that is about to change. The bubble will burst, and when it does, the people who thought they’d be living the easy life of a landlord will soon find that what they really signed up for was the hard servitude of debt serfdom . . . America holds record mortgage debt in a declining housing market. Even that might first seem okay -- we can just whether the storm in our nice new houses. And in fact things will be okay for homeowners who bought long ago and have seen the price of their homes double and then double again. But for more recent homeowners, who bought at the top and now face decades of payments on houses that soon will be worth less than they paid for them, serious trouble is brewing. And they are not an insignificant bunch. The problem for recent homeowners is not just that prices are falling; it’s that prices are falling even as the buyer’s total mortgage remains the same or even increases. Eventually, the price of the house will fall below what the homeowners owe, a state that economists call negative equity. They can’t sell -- the declining market price won’t cover what they owe the bank -- but they still have to make those (often growing) monthly payments. Their only “choice” is to cut back spending in other areas or lose the house -- and everything they paid for in it -- in foreclosure. Free markets are based on choice. But more and more homeowners are discovering that what they got for their money is fewer and fewer choices. A real estate boom that began with the promise of “economic freedom” will almost certainly end with a growing number of workers locked into a lifetime of debt servitude that absorbs every spare penny.

GUESS WHO? said...

Palm Beach County, may NOT be #1 in foreclosures...but it certainly takes the cake in %.....1 of 51 houses....wow!!!!
==================================

'06 foreclosure rate: 29%
Click-2-Listen
By Linda Rawls

Palm Beach Post Staff Writer

Friday, January 19, 2007

One in every 51 households in Palm Beach County - almost 11,000 properties - entered some stage of foreclosure last year, nearly double the national rate.

In Palm Beach County, one of the most prosperous real estate markets in the nation during the boom, foreclosures rose by 29 percent last year, to a total of 10,915, up from 8,454 the previous year (one filing for every 66 households). The increases were higher in Martin County although the actual number of cases were far fewer, according to a report issued Thursday by RealtyTrac


http://www.palmbeachpost.com/business/content/business/epaper/2007/01/19/a1d_foreclose_0119.html

CRAZY G said...

Jerry;

My opening comment on this page was, 'what going to happen to those empty houses??'...
Well the Palm Bch Post articles skirts to question...here!!!

===================================
"The declining home sales have made it less attractive for investors, and made them less able to rapidly resell a unit," said economist Hank Fishkind, president of Fishkind & Associates in Port St. Lucie, Orlando and Naples.
==================================

So the banks take them back, and many of the banks 'flip' them to some investor who may fix them up , and resell them....
As many of us already know....'flipping has flopped'....
The banks may be stuck with a huge inventory [aka REO]...Real Estate Owned...
Then again!!! IF they get to much inventory, they may JUST back off of foreclosure, like they did in Japan....and sell the little delinquent to another company and solve one problem by creating another???

Anonymous said...

I believe, an asset bubble exists for a lot more than just housing. I think that America sending its money overseas with out-sourcing and investments has spurred on the development of those countries and made money for them and the already rich here. It will continue or burst. If the former occurs, middle america will become the new below poverty (the rich will get richer), before affordablity for those assets is far outreaching our wages. If the latter occurs, same result unless we protect ourselves. Buying a depreciating in value house is not smart, and I don't know why so many folks are buying now.

Anonymous said...

If you can believe some of the reports, Joe Sixpack is in over his head in debt. I guess that's why it's showing up in the foreclosures. People are probably still making car payments on those zero down, 5 year car loans from a couple of years ago. They probably owe more on the car than it's worth, and if they bought a house recently, they may have the same problem with that also.cars depreciate, I'd guess people don't expect houses to do that though...

xSparta said...

Anyone remember the Resolution Trust Corp. (RTC) formed by the FEDS during the last housing meltdown. The RTC bought up most of the foreclosures from banks then re-auctioned them for virtually nothing. Anyone who had $ and a big pair could have made a lot of money buying up houses and sitting on them until the market came around. That's what happened to a lot of the empty houses during the last bust!.

SKB said...

Well you certainly can predict failure when you purchase beyond your means.
Thanks society for screwing up the housing market so badly.
Here is a prime example of what contributes to people getting in over there heads when they get brainwashed into believing that 150,000 homes are considered "starer homes"
BTW, my first "starter" was a 38,000 brand new with 5,000 down in 1983.

Here is a excellent example of the crazy bubble that we have witnessed.

This home SE GENOA ST Port Saint Lucie FL which sold used for 42,000 in 1987 sold again for 57,000 in 2001. This 14 year period saw an appreciation of 15,000 (1071.00 per year)

Also, was this really an appreciation or did the prices of homes decline between 1983-1987? As the office of the property appraiser in St. Lucie Country shows this home sold brand new in 1983 for 71,400. (Not sure if they could make mistakes on their data entry or not.)

Jumping ahead now, this home is now listed (as a starter home) at 157,900. So from 2001-2006 this home saw a appreciation of 100,900 ( 20,180 per year) compared to all of the 14 years prior to this of 1071.00 per year.

Appalling, simply appalling to me, also, when did society in general get brainwashed into believing that starter homes are worth 157,900? Five years ago a starter home would be around 50,000 am I wrong?

For me I have yet to spend 157,900 on a home. My biggest purchase was my last home (1500 sq feet with basement) which I sold at a loss in 1998 for 134,500 (paid 136,400 two years earlier) of course that same type of home is now selling for 250,000 in Western Canada which apparently didn't escape this housing bubble either.

Geez Louise I am so sick of this bubble and the unrealistic prices, when are we going to start to see some real movement?

sKB

lizziebeth said...

That is amazing! Our first home in 1987 in Tampa was $60k with $10k down. We couldn't sell it when we were transferred in 1990. We sold it back to the relo company. I believe it finally sold for $60k. The homes in that starter home neighborhood are selling for $150k too! It's insane!

We have never purchased a home that cost more than double our income. Usually we were way under. When we lived in the $60k home, we made $65k. When we lived in $120k home we made $70k..... I remember thinking people that lived in $300k homes were well off. I remember thinking folks that lived in $500k homes were rich!

Ha! Who knows whose rich these days. So you drive a nice car, have a mcmansion, dress to kill....doesn't mean you're rich, it just means you can get credit!

lizziebeth said...

hey skb, wait til you move down here. Everyone you meet will ask you if you are working with an agent. Everyone has a friend, mother, sister, brother... that's an agent. It's aggravating, but I just keep smiling and say "I'll be representing myself".

I'm angry like you, but I know patience is a virtue! This thing started boiling over before I expected. Here's a good way to make yourself feel better, check out all the foreclosures in the area you want to move. You generally have to pay, but some sites will give you enough information to know the street and loan amount. The numbers have doubled in Bradenton over the last few months! Those flippers can't hold on forever! As I read over at the Crazy free blog, "when people find they owe more than their house is worth and can't sell they stop making the payments". In the end, those that lived beyond their means will get what's due!

SKB said...

Hey Lizzie,

Man, it is something that is for sure. For me I completely agree with you on purchase price in relation to income. My father was in the business as a broker for 25 years and then as an agent for a builder for about ten years. He always preached to me on the values of owning your own home and never to be a renter. It is funny now at his age of 83 he believes it is better to rent now than to buy given the current upside down basic fundamentals that we are in.

I was lucky to make my first purchase at the ripe old age of 19 LOL, man did I have a lot of support from my Father on that one. I guess he was glad to finally become an empty nester with me and my brother both at the same time buying new homes and moving out of the family home. I used to also think( back a big 5 years ago) that a house worth half a million dollars was very impressive if you could afford it and that people that could afford homes like this must be very wealthy indeed. LOL, boy have times changed in such few years. I look at anyone now that has purchased a home for half a mill and think, they must be nuts and they must have gotten a reverse mortgage and also stated their income.

I love your advice, "I'll be representing myself" and I will use it well. I am not sure if I want to go with a foreclosure or not, it feels a bit like bad karma to me. In my perfect situation I would love to purchase a brand new custom home on a quarter acre to my own tastes. We will have to wait and see on that one.

It is official now, my husband put his rotation in yesterday. WPB is our #1 then Tampa is our #2 choice...we also put Fort Lauderdale, Manatee and Orlando on the list. We do not want any of those three but we were required to put our top five choices on the list.

Regards,

SKB

CRAZY G said...

XSPARTA REPLY;

I agree with everything you say....But, the unfolding of it all took years to accomplish, and some of the 'blocks' of properties were enormous....
COULD IT HAPPEN AGAIN!!!!

WELL!! Something is going to happen to all those empty houses FORSURE!!!

CRAZY G said...

SKB reply:

"""THOSE PEOPLE"" in Port St. Lucie....

>>>""WENT TO JAIL"<<<

Because of the price fixing scams, with AGC, and the appraisers...
AGC went belly up, and was bought out by GDI....
There are 1000's of lots still there....
GDI folded, and I don't know who running the scam now....
BUT, if you want to part with your money quickly....

BUY IN PORT ST LUCIE!!!!

CRAZY G said...

Sun Kissed Brain reply:

|||It is official now, my husband put his rotation in yesterday. WPB is our #1 then Tampa is our #2 choice...we also put Fort Lauderdale, Manatee and Orlando on the list. We do not want any of those three but we were required to put our top five choices on the list|||||

I lived in/near West Palm for 26 years....

>>>""YOUR IN FOR A SHOCK""<<<

""IF"" you got deep pockets, for money, and don't care..""FINE""
>>IT"S GREAT<<<
IT'S A GREAT PLACE TO LIVE, IF YOU CAN AFFORD IT, AND YOU LIKE TRAFFIC JAMS....
I loved it down there...BUT, that was 'then'....
It has/had a vibrancy, that other places don't have....
stay way from Frt. Lauderdale....
Just way to much!!!
North Palm Beach..Palm Beach Gardens is probably the best....
Gardens Mall area is unbelievable....
You won't touch anything at all for less than $300K...
The RV lot I sold last year in Riveria Bch, for 90k, is now $145K...
Get prepared to pay top dollar for hurricane insurance...$5000 to $8000 is NOTHING....
Have friends down there paying it, and want to get out!!!
Taxes @ 2.5%.....Median price house in PBC is $367k....taxes run you $10,000...

YOU JUST MIGHT WANT TO RENT....
A friend tried to sell a house for $359k...buyer found out insurance was $5k, taxes $7.5k...so buyer decided to rent it from her, for $1350/mo.....It's ok temporarily for both...but something is going to have to give eventually

CRAZY G said...

UNFORSEEN CIRCUMSTANCE OF THE HOUSING BOOM.......
===================================

Slumping Home Sales Key To Lockbox Maker's Rise
By SHANNON BEHNKEN The Tampa Tribune

Published: Jan 19, 2007


A slowdown in one industry can provide a big boost for another.

There are so many homes for sale nationwide that the Bradenton-based company that makes the front-doorlockboxes used to gain access to houses is working around-the-clock to keep up with demand.

One local real estate group ran out because it underestimated how many devices it would need.
==================================

http://www.tbo.com/news/money/MGB8156Y3XE.html

===================================
6,600 a day isn't enough...
.....WOOWWW!!!>>>>
More than 1 million in 2006

Estimated 3.8 million houses on the market!!!!! WWEEEWWWW!!!

CRAZY G said...

Sun Kissed Brain Reply;

"IF" you try to represent yourself, going into an unfamiliar area, like West Palm, you are MORE STUPID THAN LIZZIE BREATH...

>>>>YOU HAVE ""NO"" IDEA OF WHAT YOU'RE GETTING INTO<<<

How is it, that stupid 'broads' congregate together, I don't know!!!

THIS IS BIG CITY STUFF....and going it alone is just stupid!!!

"""AS I SAID, FOR MANY, MANY YEARS....YOU CAN FIND ANYTHING YOU WANT...LEGAL OR ILLEGAL IN WEST PALM"""

Becareful which side you're on!!!

Since you professed NOT to read my postings....I hope you go to hell in a hand bag!!!

lizziebeth said...

SKB,

I wouldn't buy a foreclosure either. I certainly wouldn't buy a house built in 2004,2005 and 2006!!!!! flippers don't care about the quality of the build! I just think the number of foreclosures will keep increasing causing even more inventory. At some point it will get thru to the sellers brains that people can't afford these bubble prices! Just helps when we are ready in a year or two to pay "real" prices for homes! I bet you get your land and your home for at least 40% less than the peak if you wait! Good luck with the transfer. I will keep my fingers crossed that you get one of your first two choices!

SKB said...

Lizzie,

Thanks Hon for the well wishes, we certainly will be building a custom home with a well researched builder when that moment comes for us.
I wish you the same as I have read your hearts desire as well on the other blog.
One day when we both have our homes we will have to have each other over for coffee and celebrate our good fortunes. Until then, we will sit in our armchairs and wait this storm out.
I can tell you that it has been a long five years of back and forth of trying to decide what State to live in. In the end we need to follow our hearts and take a chance. Who knows we might decide after renting in FL that we are still have not finished with our world travels and will go back overseas for another tour of duty.
Korea, England, Bahamas, now Canada, life has been a wonderful cultural experience for my family. There still is a part of us that think about Ireland and the opportunities for us there. Time will tell, living in different Countries has certainly given us a great chance to really experience life to the fullest and has given us many wonderful memories and deep friendships abroad. Each move for us has been in unfamiliar territory and each time it has worked out perfectly. Life certainly is a learning experience, so far we have been spot on with our decisions since we are intelligent people.

Sadly, I can not imagine living in the same place for 26 years and becoming so cynical and bitter over it that you end up bad mouthing it and losing your loyalty towards it, especially when it has been your bread and butter. I am glad that we (you and I ) are both young we have not become cynical and lost our minds over this.

Life is an adventure and we intend to continue on with ours.

BTW, I am finding a lot of the postings on this site is old news,some people really need to get up on the news a bit quicker. I guess again old age does that to people. My Father in Law has dementia and it is really sad, one minute he seems coherent and the next he doesn't remember if he had wet his pants or not. He used to be a really fun nice person but his dementia has gotten the best of him. Funny, it started by him lashing out for no apparent reason with a lot of hostility and anger. I think his years of drinking also added to that, alcoholics often display a lot of bizarre behaviors and yet at times can still compose a thought that seemly makes sense. Go figure.

Have a great weekend Lizzie,

SunKissedBeautiful.

CRAZY G said...

SKB reply;

|||Sadly, I can not imagine living in the same place for 26 years and becoming so cynical and bitter over it that you end up bad mouthing it and losing your loyalty towards it, especially when it has been your bread and butter. I am glad that we (you and I ) are both young we have not become cynical and lost our minds over this.|||||

Get this..""THAT'S WHY JERRY STATED THIS BLOG""

>>>FLORIDA..PARADISE LOST<<<

'NEARLY', everybody I know down there..'Wants Out"
So Florida, is ""NOT"" a Paradise any longer...it's an expensive hell hole....

>>YOU SAY, YOU DO NOT WANT A NEWER HOUSE, BECAUSE OF POTENTIAL PROBLEMS<<<

|||YOU ARE SHOWING YOUR IGNORANCE|||

Houses built before 2002, carry a much, much higher insurance premium than those built after...Some houses, built 25 years or more....""are not insurable...period""

On a side note; I was over at the rv storage place, where I keep mine, and noticed another fellows rv with Palm Beach county tags...
This guy spent his whole life there, and was ecstatic to get out..Said it was the best thing he ever did...PERIOD....

ONE FINAL PIECE OF ADVICE, TO YOUR SHRIVELLED PRUNE BRAIN, WOULD BE TO GET THE NEWSPAPERS OF THE PLACES YOU WANT TO CONSIDER MOVING TOO!!!

Either mailed to you, or check on internet!!!

CRAZY G said...

I don't think you have a conception of how distorted things have become in West Palm...

The last 5 years we spent wintering, as snowbirds, for 4-5 months, in our RV lot in WPB...

We purchased the lot in 2000, for $25,000 with taxes approx $650/yr...
By 2005, the lot prices were $90,000 to $125,000...with taxes at $1200...
Currently...lot prices are running $125K to $145K, with taxes at $1650/yr

If, you want to rent, a 35 x 68 ft lot, for one month, and bring your RV down....it'll cost you $1650/mo....

Last year...WPB residents were 'snapping' up lots, with rv'ers fifth wheels on them for $150K, and thought they were getting a good deal, cuz there wasn't anything you could buy in WPB for that price...

Wife, and I said, "if" it's this crazy here, we want out....so, we sold it to the first buyer, for $90K, and headed down the road...

Anonymous said...

Hey Crazy Z:

Why are you yelling at us? Lose the Caps.

On the internet, or when writing on a blog, when you use all capital letters, it means you are SHOUTING !!!

Why are you shouting all the time?

CRAZY G said...

Anonymous reply:

SIMPLE ANSWER.....

I WANT TO MAKE YOU AS CRAZY AS I AM..

THEN WE'LL ALL BE IN THE SAME BOAT, LOOKING FOR PARADISE LOST!!

lizziebeth said...

Anonymous,

It works best to ignore Crazy. If you don't read what he writes, he's not here.

On another note, just received an update from one of the foreclosure websites. I don't belong, but they send the street, the appraised amount and the default amount. The numbers are rising every month! Talk about Crazy!

Some time back last year, or the year before, there was an article in the paper about millionaire bartenders and waitresses, they all owned property to flip or as investments. Their carrying costs were huge but they felt what they would make in the long run would pay off. Essentially they were millionaires on paper. Ha! Haven't we heard that one before?? Guess they are all cashing out of their paper riches, but there's no money so they are defaulting on the loans.

SKB said...

I hope those bartenders and waitresses enjoyed their brief five seconds of paper wealth.

Yes Lizzie, those foreclosures are indeed rising. There will be a lot of very unhappy people for a very long time. I read in San Diego they are up 660% over last years numbers. It doesn't even seem real.

CRAZY G said...

DING-BAT BROADS THAT SHOW THEIR STUPIDITY!!!

Yah!!! there was a 660% increase...

What??? 1612 foreclosures for 650,000 homes...[1:412]

Palm Beach county had 1 foreclosure for every 55 homes!!!

SKB, Lizzie Breath...don't read this!!!...You may realize something extra-ordinary....
DUUHH!!!!

Anonymous said...

Jerry said: "You just KNOW that toxic mortgages (interest-only, balloon payments, ARMs, etc...) has been a huge contributor to this malaise. Well, that and prices that have levelled or declined."

From "Florida’s Real Estate Market
The Challenges," presented to the
Florida House Interim Workgroup on Affordable Housing September 20, 2006 by the Legislative Office of Economic and Demographic Research: "Of the total mortgages written in Florida in 2004, iver 30% were exotic mortgages, such as interest-only. 2005 was even higher."

lizziebeth said...

Here's an interesting find. Looking up listings of potential homes, I noticed more and more are owned by LLC's.

Well, Jerry, I have to say thank you for your blog. I'm out of here for awhile. When you can get Crazy under control, let me know over at the other blog. Cheers!

CRAZY G said...

On the Insurance QUESTION!!!

It looks like we'll know Monday, when they Pow-wow again!!!
But, this will give you an idea of what's going on;
==================================


Sen. Jim King, a Jacksonville Republican , said the Legislature's dilemma comes down to this: Pay me now or pay me later. To hold down rates upfront, lawmakers face the possibility of having to find a way to pay hurricane claims later.

"In essence, what we will do is we will say we prefer to pay you later,"

http://www.news-journalonline.com/NewsJournalOnline/News/Headlines/frtHEAD01APOLF012107.htm

CRAZY G said...

HIGHER INSURANCE PREMIUMS....

>>>NO PROBLEM<<<< Refinace your house???

Long live the re-fi market!!! Read this....
================================

Cash-Out Refinancing on the Rise
By AMY HOAK
January 21, 2007

People looking to extract equity from their homes have increasingly been turning to cash-out refinancing, industry observers say
Freddie Mac says 89% of the loans it owns that were refinanced in the third quarter of 2006 had amounts at least 5% higher than the original mortgage balances, the threshold for considering a loan a cash-out refinancing. It's the highest share of cash-out refinance loans reported since 1990.

Consumers cashed out a total of $82.8 billion during the quarter, down somewhat from $90.6 billion in the second quarter, according to Freddie Mac.

Banks are seeing results of the cash-out trend, too. According to the American Bankers Association, the dollar amount of home-equity loans (including loans made through home-equity lines of credit) has increased by an annualized 14.6% for the first three quarters of 2006, compared with all of 2005. That's down from a 17.4% increase in 2005 and a 31.2% increase in 2004.

http://online.wsj.com/public/article/SB116933506074982836.html?mod=sunday_journal_primary_hs

CRAZY G said...

THIS GETTING SERIOUS NOW!!!

HOME APPRAISERS AGAINST ZILLOW.COM
===================================

Appraisers rage against the machine: Home assessors accuse database corporation of stealing their work
By Kenneth R. Harney/ The Nation’s Housing
Sunday, January 21, 2007

A bitter feud inside the home-appraisal industry could affect how millions of houses are valued - including yours.

On one side are traditional home appraisers, who estimate property values by inspecting houses, researching current market conditions and checking recent “comparable” sales.

On the other side are data companies that vacuum up vast quantities of publicly property records for “automated valuation models” (AVMs). These are computer programs that many banks now use when considering mortgage applications.

Traditional appraisals cost anywhere from $300 to $500 and can take days to perform.

By contrast, AVMs can cost a bank $25 or less and are available almost instantaneously via the Web. In fact, AVMs power free home-value sites like Zillow.com

http://business.bostonherald.com/realestateNews/view.bg?articleid=178252&format=text

CRAZY G said...

HEY!!! Florida Association of Realtors....STICK IN YOUR EAR!!!!
WE DON'T NEED YOUR LOUSY REPORTS ABOUT US....SAY NAPLES REALTORS...

READ MORE:
===================================

naplesnews.com
Realtors board won’t send numbers to state
By Laura Layden

Saturday, January 20, 2007

The Naples Area Board of Realtors no longer will provide monthly home sales numbers to the statewide association that calls itself the voice for real estate in Florida.

http://www.naplesnews.com/news/2007/jan/20/realtors_board_wont_send_numbers_state/?print=1

The local real estate board says it doesn’t think the way the Florida Association of Realtors reports the numbers is relevant and that it can do a better job with its own reports, and better reflect what’s going on in the local market.

This comes as the state association’s numbers have shown sharp drops in home sales and median home prices during the past year in the Naples area.

The slowdown has attracted national attention from media and economists, who have labeled Naples as one of the most overpriced markets in the country.

crazy g said...

SO YOU DO A CONSTRUCTION LOAN, AND THE BUILDER FOLDS HALF WAY THRU, NOT PAYING THE CONTRACTORS.....

WHAT A MESS HAPPENING HERE, READ:

===================================

Bradenton bank warns of loans it made on stalled construction
By MICHAEL BRAGA, KATHLEEN MCLAUGHLIN and MICHAEL POLLICK


STAFF WRITERS


michael.braga@heraldtribune.com

michael.pollick@heraldtribune.com

BRADENTON -- Financial problems that have paralyzed a large regional home builder are now smashing into Coast Financial Holdings, a Bradenton-based community bank that loaned about $110 million to the builder's customers.

So far, Coast has not revealed the company's name, but observers and customers believe it is Construction Compliance Inc., a St. Petersburg-based home builder that has projects spread from Hernando County to Lee County.

The Herald-Tribune reported last week that CCI customers had been hit with a slew of construction liens after the home builder failed to pay electricians, drywall experts, plumbers and a variety of other subcontractors and suppliers.

Customers said that building activity on their homesites was at a standstill and that they were having trouble contacting CCI officials.

http://www.heraldtribune.com/apps/pbcs.dll/article?Date=20070120&Category=BUSINESS&ArtNo=701200409&SectionCat=NEWS&Template=printart

SKB said...

Thanks Jerry, I also am leaving this board.
The name calling is just to much.

It sickens me to see you allow one person to disrupt and chase away everyone else.
I also notice that this poster likes to copy and paste news pieces instead of supplying links like I and others do. He is wasting board space thus making this board slow to load and just plain boring.
As someone that reads up brand new news articles as fast as they are posted it gets annoying seeing something copied what I have already read days earlier.

You do have a link that clearly says "post links here".
This poster simply ignores your requests on all levels.
You asked him to stop name calling he continued, I am gone and Lizzie is gone too.

Let me know when the troll is gone.

SKB




Best of luck with your board.

SKB

CRAZY G said...

The ""DUMB"" troll admitted he didn't know how to post a link, and he doesn't want to sign up for an account with GOOGLE, in order to do it!!!!!

YOU'RE EXCUSED....

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