Foreclosures Surge

[Aaron]

Rising payments on adjustable-rate mortgages contribute to 53% jump in foreclosures:

http://money.cnn.com/2006/09/13/real_estate/foreclosures_spiking/index.htm?postversion=2006091314


Is this the start of the slow motion train wreck we've been talking about?  This doesn't seem like the soft landing so many people predicted last year.  The next few years should be interesting.

 

[Sam]

That's depressing, but hardly surprising.

The article did not mention Boston. I wonder how it's there now.

 

[devo]

Anyone want to give me the short course on picking up pre-forclosures.  Looks like it may soon be a good time to start grabbing rentals!

d

 

[retire@40]

The article did not mention Boston.  I wonder how it's there now.

Getting worse by the day.  I saw a lot of houses pop up for sale in the spring that are still up for sale now, even after some price reductions.  There are 3 on my street alone that have not sold since May.

I remember a few years ago when a house on my street would sell the same day it went up for sale and would sell for over the asking price.

What a change!

 

[tryan]

The article did not mention Boston. I wonder how it's there now.

6 mortgage firms were just forced closed by the state (MA) for fraudulent lending. Apparently the income of the lender was being fudged. Who knows how many hundreds of loan this affects in MA.

 

[Sam]

Getting worse by the day.  I saw a lot of houses pop up for sale in the spring that are still up for sale now, even after some price reductions.  There are 3 on my street alone that have not sold since May.

Where are you in the Boston area?

6 mortgage firms were just forced closed by the state (MA) for fraudulent lending. Apparently the income of the lender was being fudged. Who knows how many hundreds of loan this affects in MA.

tryan,

You have a lot of experience in Boston Real Estate, having survived the late 80's / early 90's crash, and profitted from it as well.

What's your 2-3 year short term take on Boston Housing price?  Inflation adjusted, what do you see?  Negative 10%?  flat?  positive? or what?

 

[jazz4cash]

Anyone want to give me the short course on picking up pre-forclosures.  Looks like it may soon be a good time to start grabbing rentals!

d

You're thinkin what Im thinkin! I figure this could run awhile, tho...maybe 15 months? That outfit mentioned in the link, RealtyTrac sells a foreclosure list email subscription service. I think they have a free trail. A lot of this is hype and a lot of it is the result of greed/ignorance, but I do feel bad for anyone that needs to sell right away..

 

[tryan]

What's your 2-3 year short term take on Boston Housing price? Inflation adjusted, what do you see? Negative 10%? flat? positive? or what?

The the present in anything like the past it'll take 6-7 years to "bottom". Figure there will be a recession somewhere in that time to really fuel the flame. As long as the economy continues to grow I'ld expect a "flatish" housing market. Nothing drastic will happen until the economy tips into recession. Need to drain off the excess liquidity (too many young homeowners with fat HELOCs ... and no fear).

It'll happen ... always does ... just a matter of time. Then have your ducks in line (save your pennies) because cash will be king in the best buyers market since '92-'93.

 

[Sam]

Then have your ducks in line (save your pennies) because cash will be king in the best buyers market since '92-'93. 

Agreed.