July 6, 2009

QuickLinks: Thank Goodness That Foreclosure Crisis Is Over…

New Evidence on the Foreclosure Crisis [WSJ]
Another wave of foreclosures is poised to strike [LA Times]
A New All-Time High (Or Rather Low) For U.S. Prime Delinquencies [SocketSite]

First Published: July 6, 2009 11:00 AM

Comments from "Plugged In" Readers

How can there be new foreclosures with all of the moratoriums?

I am starting to get very concerned that the banks and the government aren't being very honest.

Posted by: the.m.word at July 6, 2009 7:05 PM

How can there be new foreclosures with all of the moratoriums?

I am starting to get very concerned that the banks and the government aren't being very honest.

Posted by: the.m.word at July 6, 2009 7:05 PM

Per the WSJ article, it's negative equity that is the Primary driver of foreclosures. This has been my belief all along, and is the reason why SF will have less foreclosures percentwise than most other locales. This will limit the price deceleration in SF RE, I.e. Losses would be greater with higher foreclosure rates.

Posted by: 45yo hipster at July 7, 2009 9:16 AM

I agree that negative equity is a huge driver of foreclosures, but if you think SF is getting out of this without taking a major hit, or that this is going to be over soon ... here is some light reading

S&P raises loss expectations for risky US mortgages

U.S. Home-Equity Loan Delinquencies Set Record in First Quarter

Loan reset threat looms till 2012

Posted by: badlydrawnbear at July 7, 2009 10:16 AM

How. Very easily. The current morartorium law only requires the lender to proove they tried to contact to refi and other loopholes make most lenders exempt

just got the copy of the nod on the place I rent in the real sf. It's not a dump in a good area. The filing contains a form letter sent to the lanlord to comply with the law and the letter was processed in may

it is IMHO a case of ruthless default. Under water rent does not cover so skim rent and give back to bank. Me thinks there will be many more of these situations to fallow. The second wave of defaults is real (verified by a source I have at one of the banks) and this time it will hit the 800k plus market in the real sf.

Posted by: Calhousingbear at July 8, 2009 12:27 PM

How. Very easily. The current morartorium law only requires the lender to proove they tried to contact to refi and other loopholes make most lenders exempt

just got the copy of the nod on the place I rent in the real sf. It's not a dump in a good area. The filing contains a form letter sent to the lanlord to comply with the law and the letter was processed in may

it is IMHO a case of ruthless default. Under water rent does not cover so skim rent and give back to bank. Me thinks there will be many more of these situations to fallow. The second wave of defaults is real (verified by a source I have at one of the banks) and this time it will hit the 800k plus market in the real sf.

Posted by: Calhousingbear at July 8, 2009 1:09 PM

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