16 replies to this topic

[nimblebear]

The number of foreclosures in Detroit jumped 70% in July. Not from last year, but from June. Additionally, one out of every 97 homes in Detroit is in foreclosure.

[Trend-Signals]

Bad risk management by taking fancy financing. The smart investors bought houses and sold during the peak, making more money. It is the same for stock market.... during the down turn, only average stock holders/investors are suffering while rich folks are making mucho money - no matter, what direction market goes.

[Rogerdodger]

As I posted this past week, foreclosures in Tulsa, nearly doubled last week to near 60. It has been near 30 foreclosuresa week for months. My friend's next door neighbor's house was foreclosed and sold at auction this week. It's a nice neighborhood. The average in the neighborhood is around $150K and up. This home was appraised at $142K. You must bid at 2/3 of the appraisal which would be near $94K. The lender (Tulsa National Bank) wound up keeping it for $105K. I guess they felt that they didn't have to sell it at any price.

Edited by Rogerdodger, 23 August 2007 - 11:04 PM.

[IndexTrader]

As I posted this past week, foreclosures in Tulsa, nearly doubled last week to near 60.
It has been near 30 foreclosuresa week for months.

My friend's next door neighbor's house was foreclosed and sold at auction this week.
It's a nice neighborhood. The average in the neighborhood is around $150K and up.
This home was appraised at $142K.
You must bid at 2/3 of the appraisal which would be near $94K.
The lender (Tulsa National Bank) wound up keeping it for $105K.
I guess they felt that they didn't have to sell it at any price.

This is whats wrong with statistics. Foreclosures in Tulsa did in fact double. But I gotta tell you....60 isn't exactly a crisis.....unless your house is one of them.

IT

[Sentient Being]

This is whats wrong with statistics. Foreclosures in Tulsa did in fact double. But I gotta tell you....60 isn't exactly a crisis.....unless your house is one of them.

IT

I don't know about that not being a "crisis".

60 homes a week? If they come from your bank it's a crisis! 60 homes a week times 52 weeks that's 3120 homes foreclosed in a year. lets say they all average about 150K. They probably loaned out far more. 3120 x 150K = Oh heck, it goes over too far, it messes up my calculator! Ok, about 468 Million dollars. In one year. Hmmmmmm.

I think that might be approaching crises level, for a couple of banks in a major city to have to lose 468 million in a year. In an invironement where people are holding back, don't want to buy, and loans are harder to get? And the number of foreclosures is rising not falling. Lots of loans to hit yet that have to reset. Ugh.

I see a foreclosure lising for Tula with 1,647 listings. http://www.hudhouses...omo-id=806fcdb3 And we expect that to expand quite a bit right for the next year or so?

Edited by Sentient Being, 24 August 2007 - 12:26 AM.

[IndexTrader]

I don't know about that not being a "crisis".

60 homes a week? If they come from your bank it's a crisis! 60 homes a week times 52 weeks that's 3120 homes foreclosed in a year. lets say they all average about 150K. They probably loaned out far more. 3120 x 150K = Oh heck, it goes over too far, it messes up my calculator! Ok, about 468 Million dollars. In one year. Hmmmmmm.

I think that might be approaching crises level, for a couple of banks in a major city to have to lose 468 million in a year. In an invironement where people are holding back, don't want to buy, and loans are harder to get? And the number of foreclosures is rising not falling. Lots of loans to hit yet that have to reset. Ugh.

No one is going to lose $468 million. Unless you think a house in Tulsa is worth zero.

And then too, if you've ever attended foreclosure sales, some of them are cancelled due to various reasons/delays. This serves to bloat the number from week to week. Sometimes a particular property will come back several times. A bankruptcy filing for instance stops foreclosure, but only for a while.

That said, there is something like 140,000 owner occupied homes/condos in Tulsa according to Google. So this number represents about 2% of the total.

IT

[Sentient Being]

I don't know about that not being a "crisis".

60 homes a week? If they come from your bank it's a crisis! 60 homes a week times 52 weeks that's 3120 homes foreclosed in a year. lets say they all average about 150K. They probably loaned out far more. 3120 x 150K = Oh heck, it goes over too far, it messes up my calculator! Ok, about 468 Million dollars. In one year. Hmmmmmm.

I think that might be approaching crises level, for a couple of banks in a major city to have to lose 468 million in a year. In an invironement where people are holding back, don't want to buy, and loans are harder to get? And the number of foreclosures is rising not falling. Lots of loans to hit yet that have to reset. Ugh.

No one is going to lose $468 million. Unless you think a house in Tulsa is worth zero.

And then too, if you've ever attended foreclosure sales, some of them are cancelled due to various reasons/delays. This serves to bloat the number from week to week. Sometimes a particular property will come back several times. A bankruptcy filing for instance stops foreclosure, but only for a while.

That said, there is something like 140,000 owner occupied homes/condos in Tulsa according to Google. So this number represents about 2% of the total.

IT

Yup, as I was typing I was seeing all sorts of variables. How much if any principal was paid off, what did they get for it at auction, how long had someone had it and been carried without payment, how damaged is the house, how long do they have to hold it before someone buys, what's it cost to unload it, etc . The house, as you say, has value, how much can they get out. How far have house prises risen or fallen from the mortgage value. But 60 house a week sounds like it can add up to a lot of heartache for banks, esp since it's a rising number.

[OEXCHAOS]

I could be wrong, but I think that the problem is that it ISN'T banks holding nor making a lot of these (dare I say it?) predatory loans. This is one big concern for me. If the lenders who need the help aren't banks, how can the fed help them? Not quickly, anyway. That's for sure.

[emdee]

I live just north of Detroit and this area continues to suffer as a result of the woes of the domestic automotive industry. Frankly, there is no relief in site. Unemployment is over 7%, and much higher if you count the people who have been unemployed so long that they have fallen off the list. Typical homes in the metropolitan area have fallen as much as 20-25% from their highs. I hear about investors coming in for bargains within the city limits of Detroit. I would not recommend that to anyone who is not very familiar with the area. Although there are a few neighborhoods within the city that are fairly nice, for the most part I wouldn't take the majority of the homes on for free. Fwiw, the Detroit metropolitan area is actually very nice and should not be confused with the city of Detroit, which imo is everything you hear about it. Mike

[IndexTrader]

I could be wrong, but I think that the problem is that it ISN'T banks holding nor making a lot of these (dare I say it?) predatory loans.

This is one big concern for me. If the lenders who need the help aren't banks, how can the fed help them? Not quickly, anyway. That's for sure.

Bill Gross had a solution for those that think these loans were "predatory".....simply bail out the 2MM +- homeowners.

http://www.pimco.com...tember 2007.htm

Personally I find it difficult to imagine that 2 million homeowners were not aware of the terms of their loans. Sheesh. If so, we need to require a remedial reading course for anyone who receives bailout funds. And then too, hedge funds who lever up at say 10=1 a subprime mortgage which by definition is made to a guy who in all probability has a history of not making his payments....well let's just say that hedge fund needs to find another line of work.

IT