Berkeley CSUA MOTD:Entry 43195
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2024/12/24 [General] UID:1000 Activity:popular
12/24   

2006/5/26-28 [Finance/Banking, Reference/RealEstate] UID:43195 Activity:nil
5/25    http://www.msnbc.msn.com/id/12975777/from/RS.3
        More signs of a housing bubble. If you still have variable rate
        mortgage, you're fucked.
        \_ I thought more people bought houses, and GDP increased 5.3% during
           the first quarter
        \_ I've heard this statistic before (foreclosures up 72% over same
           time last year) but I also know that foreclosures have been
           very low for the last 5 years.  So is the current rate higher
           than average?
        \_ Having an ARM and being fucked has *nothing* to do with any
           housing bubble, real or not.  It has to do with rising interest
           rates which have been pushed up each time the Fed has met over
           the last 2-3 years.  If housing prices dropped 90%, an ARM buyer
           would be in the same position as 30 year standard loan buyers so
           long as rates didn't rise.  This is pretty basic stuff.
           \_ Not quite.  The ARM buyer will want to get into a fixed loan and
              can't, because he'll get really shitty rates b/c he has no equity
              \_ Why would the ARM buyer want to get into a fixed loan if the
                 rates weren't going up?
                 \_ The hypothetical given didn't exclude rates going up.
                    \_ Did it include rates going up?  Since it was my
                       hypothetical I'm pretty sure I know what I meant since
                       I said "so long as rates didn't rise".
2024/12/24 [General] UID:1000 Activity:popular
12/24   

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Cache (1782 bytes)
www.msnbc.msn.com/id/12975777/from/RS.3
Foreclosure rate climbs May 25: Remember the refinance craze of the not-too-distant past, where millions of homeowners jumped on those low-interest, adjustable-rate mortgages? As NBC's Ron Mott reports, those days are over and foreclosures are on the rise. Ron Mott Correspondent In the suburbs of Dallas, Bridget Edwards comes home to uncertainty every day. She and her husband, James, are four months behind on their mortgage. That's a problem facing a growing number of Americans, who are finding themselves one crisis away from financial ruin. RealtyTrac, an industry organization that maintains a nationwide database of foreclosures, says mortgage defaults between January and March of this year numbered 323,102 compared with 188,122 during the same period last year - an increase of 72 percent. Indianapolis leads the nation, with one out of every 69 homes in foreclosure. Experts say it's those popular variable-rate loans that are helping drive the surge in foreclosures around the country, allowing buyers to purchase more expensive houses than they could otherwise afford. With adjustable-rate loans accounting for about a quarter of all mortgages, how big could this problem become? "If the economy stays healthy and creates jobs, you may see these foreclosure rates actually go down in some of these cities," says David Lereah, chief economist at the National Association of Realtors. Meantime, foreclosure auctions are filling up, with houses too pricey for many to keep. "The reason homeowners have been buying properties that are probably beyond their means, is that they haven't been looking at what the house costs," says Rick Sharga with RealtyTrac, which maintains a database of foreclosed properties. They are hoping the ultimate cost isn't their pride and joy.