Comments on: This Just In: subprime defaults worsening, sky still blue http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Fri, 20 Nov 2009 00:20:49 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: David http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/comment-page-1/#comment-4655 David Fri, 28 Sep 2007 01:31:56 +0000 http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/#comment-4655 Buck, Great point and thanks for the link that is some great information, Also for those of you lending in Florida , Lenders our starting cap all loans at 80% cltv for fear of falling value and no cash out on condo's. None of this is shocking news although. Buck, Great point and thanks for the link that is some great information, Also for those of you lending in Florida , Lenders our starting cap all loans at 80% cltv for fear of falling value and no cash out on condo’s. None of this is shocking news although.

]]> By: Don http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/comment-page-1/#comment-4652 Don Thu, 27 Sep 2007 23:54:32 +0000 http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/#comment-4652 Morgan, I don't know about a bottom, but it's going to get real bad next spring-summer. That's the word. And look for more panics like we had in August, maybe 3-4 more. We won't start pulling out of this until at least early '09. Morgan, I don’t know about a bottom, but it’s going to get real bad next spring-summer. That’s the word. And look for more panics like we had in August, maybe 3-4 more.

We won’t start pulling out of this until at least early ‘09.

]]> By: Buck Johnson http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/comment-page-1/#comment-4648 Buck Johnson Thu, 27 Sep 2007 22:39:54 +0000 http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/#comment-4648 What about the 1031 Exchange problems, some not all (but I bet many have) used there clients tax deferred money to invest in there own financial projects or products. Some have been reported on as being on the wrong side of a financial deal, costing it millions of there client money. The problem is that there is no regulation about how the holder of the money is to use the house sellers investment money. I think that more and more things are coming out of the wash in regard to the debt financing of everything and sub-prime mortgages. http://www.larealestateblog.net/los_angeles_real_estate_w/2007/06/1031_exchange_p.html What about the 1031 Exchange problems, some not all (but I bet many have) used there clients tax deferred money to invest in there own financial projects or products. Some have been reported on as being on the wrong side of a financial deal, costing it millions of there client money. The problem is that there is no regulation about how the holder of the money is to use the house sellers investment money. I think that more and more things are coming out of the wash in regard to the debt financing of everything and sub-prime mortgages.

http://www.larealestateblog.net/los_angeles_real_estate_w/2007/06/1031_exchange_p.html

]]> By: Ann http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/comment-page-1/#comment-4635 Ann Thu, 27 Sep 2007 21:12:18 +0000 http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/#comment-4635 Morgan..I agree..inventory is a key element in the recovery process...and right now we have more than we know what to do with... Morgan..I agree..inventory is a key element in the recovery process…and right now we have more than we know what to do with…

]]> By: Morgan Brown http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/comment-page-1/#comment-4630 Morgan Brown Thu, 27 Sep 2007 18:21:56 +0000 http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/#comment-4630 David thanks for the compliments and your thoughtful comments. I agree there has been a false market, and inventory will drive the game. While homebuilders are stopping now, there is still a ton (and ever-growing) inventory of homes that need to be consumed before we see a balancing of the home prices in the market. David thanks for the compliments and your thoughtful comments. I agree there has been a false market, and inventory will drive the game. While homebuilders are stopping now, there is still a ton (and ever-growing) inventory of homes that need to be consumed before we see a balancing of the home prices in the market.

]]> By: Morgan Brown http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/comment-page-1/#comment-4629 Morgan Brown Thu, 27 Sep 2007 18:20:28 +0000 http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/#comment-4629 Dave and Tom - I agree we're looking at 2009 at least for a bottom. Ann, you are right on the money - real estate is regional and while a recession is defined as national, the housing recession is going to be accute in places like Florida, Nevada and inland empire California. John G. - HA! I wonder where that guy is and how many of his books are selling these days. I think a great piece would be "where are they now" to track down all the biggest pumpers and shills of the housing bubble over the last half-decade. Dave and Tom – I agree we’re looking at 2009 at least for a bottom.

Ann, you are right on the money – real estate is regional and while a recession is defined as national, the housing recession is going to be accute in places like Florida, Nevada and inland empire California.

John G. – HA! I wonder where that guy is and how many of his books are selling these days. I think a great piece would be “where are they now” to track down all the biggest pumpers and shills of the housing bubble over the last half-decade.

]]> By: Ann http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/comment-page-1/#comment-4626 Ann Thu, 27 Sep 2007 17:31:52 +0000 http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/#comment-4626 The bottom..well like most things in life are subjective..In that case the bottom may depend on where you live in this country...In New York City..well like the roaches, hard to kill, their market tends to not really know a bottom much less a top..In Florida well, let's just say I hope homeowners there REALLY REALLY like their home...since they will be in them for years to come...bottom for them..if only I had that crystal ball...when recovery does come..it will be a slow slow ride back up for some just to get their head above water to take a breathe and others well..its always been a smooth sail... The bottom..well like most things in life are subjective..In that case the bottom may depend on where you live in this country…In New York City..well like the roaches, hard to kill, their market tends to not really know a bottom much less a top..In Florida well, let’s just say I hope homeowners there REALLY REALLY like their home…since they will be in them for years to come…bottom for them..if only I had that crystal ball…when recovery does come..it will be a slow slow ride back up for some just to get their head above water to take a breathe and others well..its always been a smooth sail…

]]> By: John G. http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/comment-page-1/#comment-4623 John G. Thu, 27 Sep 2007 17:08:46 +0000 http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/#comment-4623 Maybe the MSM should have a follow-up interview with David Lereah? They liked putting him center stage just 2 years ago as the "all knowing economist" with expert analysis of the housing sector. Where is he these days?? Maybe the MSM should have a follow-up interview with David Lereah? They liked putting him center stage just 2 years ago as the “all knowing economist” with expert analysis of the housing sector. Where is he these days??

]]> By: David http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/comment-page-1/#comment-4612 David Thu, 27 Sep 2007 13:02:08 +0000 http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/#comment-4612 The truth is that we were in a false market for the past 6 years and some very bad decisions were made by the people we though were smart and now we realize they were just greedy. I read a pretty interesting article about the housing bust that showed charts on the housing pace vs the population growth and it showed 1 new home being built for every 1.5 person being born in the U.S. What I found to be the most interesting is that the chart also stated that in the past 14 years there were 46 millions home built and only 23 million people added. The great correction is going on right now and just like the laws of gravity , What goes up must come down. Even if the numbers are not totally correct we can see the changes going on before our eyes. Housing we move forward but it won't be a cash cow like before. I have made great money in the past 7 years in the business and saw some good things and bad things go on. I can remember a quote from one of my former owners of the mortgage lender that I working for. We were at a regional managers meeting in Florida going over the new products we were going to rolling out. It was mid 2005 when the market first started to shift. As were asking questions about the products and the direction of the company in the future, the CEO took podium and said told a sales story and at the end simply stated the the product was for selling not buying. This man has a net worth of 800 million dollars. I now understand why. With the massive build up of homes and lenders having a by any means necessary attitude about selling mortgages this situation could not be avoided. My former boss's fortune was peanuts in the bigger scheme of things, the mortgage business have average has been about 3 trillion over the past 6 years, 3,000,000,000,000. I use to think I knew what was going on but as this whole mess is coming to light , I see my education is just starting. I thing you are doing a great job with this blog and I wish you great success!!!!!!!!!! The truth is that we were in a false market for the past 6 years and some very bad decisions were made by the people we though were smart and now we realize they were just greedy. I read a pretty interesting article about the housing bust that showed charts on the housing pace vs the population growth and it showed 1 new home being built for every 1.5 person being born in the U.S. What I found to be the most interesting is that the chart also stated that in the past 14 years there were 46 millions home built and only 23 million people added. The great correction is going on right now and just like the laws of gravity , What goes up must come down.

Even if the numbers are not totally correct we can see the changes going on before our eyes. Housing we move forward but it won’t be a cash cow like before. I have made great money in the past 7 years in the business and saw some good things and bad things go on. I can remember a quote from one of my former owners of the mortgage lender that I working for. We were at a regional managers meeting in Florida going over the new products we were going to rolling out. It was mid 2005 when the market first started to shift. As were asking questions about the products and the direction of the company in the future, the CEO took podium and said told a sales story and at the end simply stated the the product was for selling not buying. This man has a net worth of 800 million dollars. I now understand why. With the massive build up of homes and lenders having a by any means necessary attitude about selling mortgages this situation could not be avoided.

My former boss’s fortune was peanuts in the bigger scheme of things, the mortgage business have average has been about 3 trillion over the past 6 years, 3,000,000,000,000. I use to think I knew what was going on but as this whole mess is coming to light , I see my education is just starting. I thing you are doing a great job with this blog and I wish you great success!!!!!!!!!!

]]> By: Tom V http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/comment-page-1/#comment-4609 Tom V Thu, 27 Sep 2007 11:38:27 +0000 http://blownmortgage.com/2007/09/26/this-just-in-subprime-defaults-worsening-sky-still-blue/#comment-4609 Once we've burned off the excess inventory back to normal levels..... Spring 2009? Once we’ve burned off the excess inventory back to normal levels…..

Spring 2009?

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