Comments on: A Long Way Down

By: Morgan Brown

Morgan Brown — Tue, 21 Aug 2007 06:09:21 +0000

Dewaine – Banks based on unsound lending principles and poor business and risk models should fail – it sounds cold, but capitalism depends on it.

morgan

By: Morgan Brown

Morgan Brown — Tue, 21 Aug 2007 00:17:00 +0000

Being an appraiser is going to be a horrible job for the next few years. Imagine a job where every customer is angry at you and you have just imagined an appraiser’s life until the housing market picks back up. I’d love to hear from an appraiser – they get abuse from lenders when value doesn’t come in and get derided by home owners who think their house is worth more…brutal.

By: Good to Go Pile « Trading for the Masses

Good to Go Pile « Trading for the Masses — Mon, 20 Aug 2007 19:29:09 +0000

[...] long way down to a bottom, stop trying to catch [...]

By: Dewaine

Dewaine — Mon, 20 Aug 2007 16:17:17 +0000

This will lead to failing banks. Has anyone realized this??

By: given

given — Mon, 20 Aug 2007 05:33:06 +0000

Fox? You watch Fox? You’re kidding, aren’t you? Fox is nothing more than right-wing propaganda. Only an idiot would watch Fox. Oh, sorry. Maybe you are one of THOSE idiots. Didn’t mean to offend.

By: Jason Ganz

Jason Ganz — Mon, 20 Aug 2007 04:57:29 +0000

Great post! I am gonna share it with my own blog readers at jason.landbrokr.com ! Thanks.

By: SteveC

SteveC — Mon, 20 Aug 2007 02:14:36 +0000

Here’s how the Wall Streeters figure things. I heard this one on FOX. The average home is $235,000. Through the foreclosure process, the average home will lose 10%. The guy multipled the $23,500 times the number of expected foreclosures and arrived at a total losses number. I would like to meet this guy’s crack dealer.

By: Dave Wirsching

Dave Wirsching — Sun, 19 Aug 2007 16:28:26 +0000

One of the biggest issues here in the Philadelphia region killing deals is appraisals. In the last year we?ve seen a sea change in appraised values. Appraised values aren?t just standing still, they are going down, sometimes dramatically within the space of a year (like 20-30%).

A year ago our cancelations were due to a myriad of factors. Now, most deals die because the property doesn?t appraise out. I?d say at least 50% of the refinance deals we see have some sort of change/modification because of the appraisal. That doesn?t count the deals that don?t even get to us.

If there is plenty of equity, it?s just an adjustment. If there isn?t it?s a deal killer. I expect the people who need to refinance the most have the least equity. The appraisal will prevent them refinancing.

I would guess that this is happening across the country and will only get worse as comps are dragged down by foreclosures, fire sales, etc.