Friday, September 5, 2008

But I thought the bottom was here

More good news on the home front. Well good news for me that is, the dumbass renter throwing my money away on rent and not living the American Dream of home "ownership".

As I have been saying all along, this was never a subprime issue. It was a 'people borrowed too much money for houses they couldn't afford' issue. The subprimers were just the first to be exposed for the frauds they were. Now the MSM is finally cluing in to the overall reality:

WASHINGTON - More than 4 million American homeowners with a mortgage, a record 9 percent, were either behind on their payments or in foreclosure at the end of June, as damage from the housing crisis worsened, the Mortgage Bankers Association said Friday.

But the source of trouble in the mortgage market has shifted from subprime loans made to borrowers with poor credit to homeowners who had solid credit but took out exotic loans with ballooning monthly payments.

More than one out of 10 borrowers with a prime adjustable-rate loan is now delinquent or in foreclosure. That portion, 11.3 percent, was up from 9.7 percent in the first quarter and is expected to continue to rise as more homeowners see their monthly payments spike.

Oh so you mean someone making $75K a year with a $825K home can't keep up with the payments once the 2 year intro rate goes away? Shocking, just shocking I tell you. Well there goes the SoCal market where millions of middle to upper middle class with good credit took out these kinds of loans. There goes Seattle too. And pretty much every other city where they thought things were different.

1 in 10 prime borrowers in default. That is astounding. Mind blowing really.

And what is a story like this without the sob story from the cluless and rather idiotic MSM?

One such borrower, Deanna Tamraz, 63, of Warminster, Pa. has been paying $1,700 a month — just above the minimum level — to Countrywide Financial Corp., which refinanced her loan two years ago.

She fears she will be unable to make payments once the balance owed rises to 15 percent more than the original $260,000 mortgage, triggering a dramatic jump in loan payments. "Like a stupid person, I trusted them," she said.

Really? At 63 this woman took out an adjustable mortgage? At sixty fucking three? And the bank gave this woman a $260,000 loan at sixty fucking three? Does anyone at the bank know about the life expectancy of an American woman? It's 77. Which means even is she got lucky and lived another 15 years past her expected shelf life, she still would die before the 30 years of her mortgage was up.

At 63 people are supposed to have the house paid off. You don't take out a quarter million dollar loan a few years before retirement. Exactly how did she think she's make the payments, from the Social Security check?

Man alive the stupidity in this country knows no bounds anymore. At least this dumbass admits to being stupid. But even so she doesn't take responsibility for her actions and blames the big bad evil lender. Sorry Deanna, you get today's award for Stupidest Person Alive.

And to everyone out there who thinks, well this is only an issue in Las Vegas or Phoenix, think again. Here are the top 10 states for foreclosures for July 2008:

1       Nevada        
2 California
3 Florida
4 Arizona
5 Ohio
6 Georgia
7 Michigan
8 Colorado
9 Utah
10 Virginia
Here is the top 10 for July 2007

  1. Nevada 1 in 199 homes
  2. Georgia 1 in 299 homes
  3. Michigan 1 in 320 homes
  4. California 1 in 333 homes
  5. Colorado 1 in 347 homes
  6. Ohio 1 in 376 homes
  7. Florida 1 in 431 homes
  8. Arizona 1 in 433 homes
  9. Massachusetts 1 in 580 homes
  10. Indiana 1 in 609 homes
Yep it's only Phoenix and Las Vegas that's affected. Georgia at number 2 is not surprising given the rampant amount of mortgage fraud taking place in the Atlanta area. But don't tell that to the real estate agents around here who are convinced Atlanta is different.

No comments: