Phoenix tops nation in home value declines (lender, houses)

[EnicAZ]

MN-Born-n-Raised:

What a mess this is. This is going to go on for a long, long time sadly.

[ladysovereign]

Originally Posted by MN-Born-n-Raised

The recent accounting modifications have been talked in 500 + articles. It is a fact.

From Watchdog: Accounting Tied to Lack of Loan Modification - BusinessWeek (http://www.businessweek.com/blogs/money_politics/archives/2009/08/watchdog_accoun.html - broken link).

Again, this is opinion, not fact. For this editorial seems to contradict itself as well:
"If homeowners don’t have income, or have seen their wages fall because of a layoff, furlough or pay cut, no amount of modification will help them stay in their home -- and that’s increasingly what banks are seeing. "You can modify it, but it may not be successful," she says."

What I've been saying all along.

I'm done here as you haven't proved your point to me with hard data evidence that Banks benefit from stalling Foreclosures, and I've got other things to concentrate on.

Have a nice day.

[khuntrevor]

You must admit that they don't "MARK TO MARKET." It is common knowledge. It is also part of the stalling, and delaying the inevitable huge write downs they will face. If they were force to mark to market; most US Banks would be way overleveraged and insolvent. So the delaying and stalling is not only a benefit to them, it is a necessity. I'm a Business School Graduate, and I ain't talkin' Devry. Just bought my third REO in two years. This one at late 2007 price-100,000 then divided by 2.

[amatrine]

I have seen homes that are forclosed in this area sit empty on not go on the market for two years. The banks are letting them sit for sure.

My neighbor is loosing her home. She has PMI and her bank will not help her.
I told her she needs to talk to FHA, to try to get help. Instead she went to her bank, who does not have her interest at heart , because they will get the amount of the loan from her insurance with her out.

FHA , on the other hand is the one who is paying the bank. So , THEY do have a reason to help , but she did not get what I was saying, and now she has to leave. I gave here a phone number to call , as there is a program here in this state rite now they she was qualified for through FHA . She is of the belief that
the bank should help her as the interest they get in the long run would be more that what they get now.

I told her , if that was the case they would not foreclose on anyone!
It is just not the way it works. Rite now she has her house 40 Percent payed off.
She only owes 67k, but the values here are so bad now it will probably go for 40k. It will probably sit there empty for two years, like most the other houses in this town , that are on the back burner, in limbo, not for sale, getting vandalized and turning this place into a ghost town.

[MN-Born-n-Raised]

Originally Posted by ladysovereign

Again, this is opinion, not fact. For this editorial seems to contradict itself as well:
"If homeowners don’t have income, or have seen their wages fall because of a layoff, furlough or pay cut, no amount of modification will help them stay in their home -- and that’s increasingly what banks are seeing. "You can modify it, but it may not be successful," she says."

What I've been saying all along.

I'm done here as you haven't proved your point to me with hard data evidence that Banks benefit from stalling Foreclosures, and I've got other things to concentrate on.

Have a nice day.

It's not a contradiction. No modification will work for some people. That doesn't change the angle that in some situations, banks have not foreclosed because they need to keep the bad asset on the books because of the liquidy laws / ratios.

It's a FACT (not an opinion) that accounting laws were changed. Now please give me an answer why were those laws were changed??? When you have that answer, hopefully you don't think it is a leap to assume that at least some foreclosures or delays are the result of the new law.

My message on all of this is that the banks are being more rational than some people give them credit. Just follow the money. PMI insurance, who gets the fees and when, tax credits for short sales versus foreclosures, who owns the notes versus who services it, cash offfers versus financed offers etc etc. I suppose in every situation I could default to say "prove it" which you would claim it is an opinion. But then I could say prove that people buy a home for a tax write-off (mortgage deduction). I hope you get my point.

[EnicAZ]

ladysovereign,

You said it well.

"Again, this is opinion, not fact. For this editorial seems to contradict itself as well:
"If homeowners don’t have income, or have seen their wages fall because of a layoff, furlough or pay cut, no amount of modification will help them stay in their home -- and that’s increasingly what banks are seeing. "You can modify it, but it may not be successful," she says."

The big problem is a lack of livable jobs. Until this problem is tackled, it will be a continuing struggle to slow falling home values and the foreclosure mess in the Phoenix area.

[MN-Born-n-Raised]

See http://www.newleadingedgeucation.com/reports/ORTCdoc7.pdf (broken link)

There is a nice "state-of-the-state" of the Phoenix marketplace. It's written by the Cromford report and is an overview of the RE market as of November 1st.

[EnicAZ]

MN-Born,

Thanks for the link. As many have seen, the future price index on the live data has Phoenix prices falling another 10%+ in the next four months alone. It is getting really rough out there, as investors have been leaving the market for not wanting to get caught up in the legal troubles with foreclosures. Even title companies don't want to touch many of these houses.

They were pretty much the only group buying anything up until last month. Since then there has been a major dive in sales, and the in-progress rapid price declines makes sense.

[PhoenixAirConcerns]

I don't see how it can not fall, with our budget problems and still very bad unemployment. Our family and friends have all been struggling and moving in together.

[EnicAZ]

amatrine,

"I have seen homes that are forclosed in this area sit empty on not go on the market for two years. The banks are letting them sit for sure.

My neighbor is loosing her home. She has PMI and her bank will not help her.
I told her she needs to talk to FHA, to try to get help. Instead she went to her bank, who does not have her interest at heart , because they will get the amount of the loan from her insurance with her out.

FHA , on the other hand is the one who is paying the bank. So , THEY do have a reason to help , but she did not get what I was saying, and now she has to leave. I gave here a phone number to call , as there is a program here in this state rite now they she was qualified for through FHA . She is of the belief that
the bank should help her as the interest they get in the long run would be more that what they get now.

I told her , if that was the case they would not foreclose on anyone!
It is just not the way it works. Rite now she has her house 40 Percent payed off.

She only owes 67k, but the values here are so bad now it will probably go for 40k. It will probably sit there empty for two years, like most the other houses in this town , that are on the back burner, in limbo, not for sale, getting vandalized and turning this place into a ghost town."

You are right. A proper analogy on foreclosure levels is an iceburg, where 10% of the iceburg is above the water and 90% is below the water. So it is with the number of foreclosures listed. Only a small percent of the lender owned properties are being actively listed for sale, while most of them are sitting empty with no activity whatsoever. Your neighbor's situation is a normal, unfortunately.