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What exactly is the 53% referring to in your article?
Sorry. I'm kinda' glossing over all the numbers in a desire for brevity and I guess I did it too much. They have a category in the report with the title, "Months Supply." That would be the number we would consider "absorbtion rate.
Then, they have a category in the chart listed as "60 Day Absorbtion." That's where the 53% came from.
Though California does have highest foreclosure rate, that does not mean each county in the state automatically has the highest. I believe the number is 20% of the 1465 zip codes and are focused in the Inland Empire, Central Valley and Sacramento Area.
Let's not forget that the majority of these issues stem from loans that were originated between 2005-2006, there are plenty of homeowners who bought before, have 30 yr. fixed rate mortgages and are very secure. In addition, the bay area has a very strong Job Economy so appreciation in the area is consistently higher then other areas.
Let's not forget that the majority of these issues stem from loans that were originated between 2005-2006, there are plenty of homeowners who bought before, have 30 yr. fixed rate mortgages and are very secure. In addition, the bay area has a very strong Job Economy so appreciation in the area is consistently higher then other areas.
I lived in the Bay Area for 13 years. Recently moved out of CA in 2006. I still subscribe to the Contra Costa Times on line (it's a East Bay News Paper) and the Bay Area job market has seen a downturn. A lot of there economy was fueled by jobs in the real estate industry. Due to the downturn in the housing markets lots of mortgage brokers, lenders, title companies shut there doors. Those are receptionist, processors, underwriters, admin, not just loan officers unemployed. Not to mention the people that worked in the construction industry.
In my opinion, If a persons loan isn't going into foreclosure due to loan resets, or crazy POA and hybrid loans, it could go into foreclosure because a lot of people are competing for to few jobs. Not to mention gas and food costs -
I still have friends and family that live in the Bay Area and they are going through a rough time. I have family with fixed rate loans that may have trouble making there payments - just rough
did u know cali is the #1 in foreclosures in the nation right now? those $700k homes will be slash in half by end of this year. just wait and see. buy it at the end of the year. u will thank me for it.
They might, But right now I'd like to know where you got your facts? What data shows that the houses will be Slashed in half? Is that all of them?? In every city???
Amazing conclusions!
They might, But right now I'd like to know where you got your facts? What data shows that the houses will be Slashed in half? Is that all of them?? In every city???
Amazing conclusions!
Nah, just based it on economic report and common sense. The majority of ur avg. joe living in these cities median salary is $45k. Now ask urself this, how can an avg. joe afford. $700k house? I would even give u a spouse for him who make the same as him will bring their income up to $90k. Plus with the stricter 20% down payment, ur avg credit debt ($15k), student loan, car payment etc. Do u know how long will it take to save 20% down payment.
Yes u can do it during the housing boom with the subprime and arm loan. But no longer. Historically... houses only appreciate 5%/yr. But during the housing boom u see these houses appreciate 30%-100%. When it is tougher for ur avg joe to come up with 20% down payment and a mortgage = houses prices decrease. Moderator cut: personal attack
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Originally Posted by vincentnyc
Nah, just based it on economic report and common sense. The majority of ur avg. joe living in these cities median salary is $45k. Now ask urself this, how can an avg. joe afford. $700k house? I would even give u a spouse for him who make the same as him will bring their income up to $90k. Plus with the stricter 20% down payment, ur avg credit debt ($15k), student loan, car payment etc. Do u know how long will it take to save 20% down payment.
Yes u can do it during the housing boom with the subprime and arm loan. But no longer. Historically... houses only appreciate 5%/yr. But during the housing boom u see these houses appreciate 30%-100%. When it is tougher for ur avg joe to come up with 20% down payment and a mortgage = houses prices decrease.
20% down payments are not required to purchase homes. Maximum loan to values have been cut, and underwriting guidelines have been tightened, but saying that everyone needs to save up 20% to put down is inaccurate.
Last edited by Marka; 03-28-2008 at 05:26 AM..
Reason: cut quote
Where do you come up with that the "average" person in that area has that salary, debts, etc?
Also... there is no requirement for 20% down to buy a home. FHA still allows it with 3% down. There are many Fannie Mae and Freddie Mac that require 3-5% and VA still does 100% financing.
What has been eliminated is low or no money down loans for those that can not document income or have good to great credit. That is as it should be. It does not really matter if you have 800 credit score if you do not have the income to afford the debts you are taking on. I understand the need for stated income loans for commission or self employed individuals who can not just pull out a W2. That's how it should be.... but for those with good debt-to-income ratios, a little money saved and decent credit there are still many options to buy a home.
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just my two cents...
