Comments on: 9% of All Mortgages in Default/Foreclosure http://mrmortgage.ml-implode.com/2008/09/05/9-of-all-mortgages-in-defaultforeclosure/ Your personal tour guide through the housing finance "misinformation maze". Thu, 14 May 2009 13:28:04 -0400 http://wordpress.org/?v=2.8.1 hourly 1 By: Really? Wow. « The Hungry Writer http://mrmortgage.ml-implode.com/2008/09/05/9-of-all-mortgages-in-defaultforeclosure/comment-page-1/#comment-11943 Really? Wow. « The Hungry Writer Tue, 27 Jan 2009 15:04:47 +0000 http://mrmortgage.ml-implode.com/?p=276#comment-11943 [...] go bad to wipe out an amount of wealth equal to the U.S. GDP. Right now, according to some figures, 9% of U.S. mortgages are in [...] [...] go bad to wipe out an amount of wealth equal to the U.S. GDP. Right now, according to some figures, 9% of U.S. mortgages are in [...]

]]> By: Mr. Mortgage’s Guide to the TRUTH! » WaMu Ex-Employee Speaks Out - How It Really Was http://mrmortgage.ml-implode.com/2008/09/05/9-of-all-mortgages-in-defaultforeclosure/comment-page-1/#comment-7635 Mr. Mortgage’s Guide to the TRUTH! » WaMu Ex-Employee Speaks Out - How It Really Was Mon, 03 Nov 2008 02:10:55 +0000 http://mrmortgage.ml-implode.com/?p=276#comment-7635 [...] Option ARM, Jumbo Prime and Prime. This is why the mortgage bankers association just reported that 9% of all mortgage loans are currently delinquent. That goes far beyond [...] [...] Option ARM, Jumbo Prime and Prime. This is why the mortgage bankers association just reported that 9% of all mortgage loans are currently delinquent. That goes far beyond [...]

]]> By: Mr. Mortgage’s Guide to the TRUTH! » Final Phonie/Fraudie Thoughts Before Market Decides Fate http://mrmortgage.ml-implode.com/2008/09/05/9-of-all-mortgages-in-defaultforeclosure/comment-page-1/#comment-5524 Mr. Mortgage’s Guide to the TRUTH! » Final Phonie/Fraudie Thoughts Before Market Decides Fate Mon, 08 Sep 2008 17:08:16 +0000 http://mrmortgage.ml-implode.com/?p=276#comment-5524 [...] MBS: Have You Ever Seen One? Bill Gross Must Not Have.Fannie/Freddie…Now We Wait For Help or HELL9% of All Mortgages in Default/ForeclosureCountrywide/BofA - A Direct Threat to Borrowers & ShareholdersWachovia, Fitch & ‘The Pay [...] [...] MBS: Have You Ever Seen One? Bill Gross Must Not Have.Fannie/Freddie…Now We Wait For Help or HELL9% of All Mortgages in Default/ForeclosureCountrywide/BofA – A Direct Threat to Borrowers & ShareholdersWachovia, Fitch & ‘The Pay [...]

]]> By: Too scared to buy http://mrmortgage.ml-implode.com/2008/09/05/9-of-all-mortgages-in-defaultforeclosure/comment-page-1/#comment-5499 Too scared to buy Mon, 08 Sep 2008 03:38:49 +0000 http://mrmortgage.ml-implode.com/?p=276#comment-5499 Mr Mortgage, I'd like your opinion. I live in the way overpriced Seattle-Tacoma metro area; Tacoma to be specific. I have seen house prices drop somewhat, and I've seen most of the new high-rise condo projects come to a stop. Last year the median household income was just shy of $41K, and the median price was abut $265K... which is obviously too high in terms of the usual 3x to 4x income/house cost ratio we all know. The economy is driven by blue-collar jobs and the port (not nearly the amount of white collar jobs as there are in Seattle). Prices have gone down; homes that sold for $400K a couple years ago are down to the low 300's. But it's hardly in line with what folks can afford... It's fairly well established that a $40K income can't service a $330K mortgage. Prices have got to fall more to even be in the range of acceptable. I know the bubble here in the NW isn't nearly as spectacular as those in Cali/AZ/Fla, etc. But I also know prices ballooned here too. So, my rambling aside, how is your outlook for my area? I would love to buy a house, and I'm fortunate enough to afford it. But I'm too nervous to do it. I'm only 26 and don't want to find myself financially screwed over so early in my life. Thanks for your insight, Mr Mortgage. Mr Mortgage, I’d like your opinion.

I live in the way overpriced Seattle-Tacoma metro area; Tacoma to be specific. I have seen house prices drop somewhat, and I’ve seen most of the new high-rise condo projects come to a stop.
Last year the median household income was just shy of $41K, and the median price was abut $265K… which is obviously too high in terms of the usual 3x to 4x income/house cost ratio we all know. The economy is driven by blue-collar jobs and the port (not nearly the amount of white collar jobs as there are in Seattle).
Prices have gone down; homes that sold for $400K a couple years ago are down to the low 300’s. But it’s hardly in line with what folks can afford… It’s fairly well established that a $40K income can’t service a $330K mortgage. Prices have got to fall more to even be in the range of acceptable.
I know the bubble here in the NW isn’t nearly as spectacular as those in Cali/AZ/Fla, etc. But I also know prices ballooned here too.

So, my rambling aside, how is your outlook for my area? I would love to buy a house, and I’m fortunate enough to afford it. But I’m too nervous to do it. I’m only 26 and don’t want to find myself financially screwed over so early in my life.
Thanks for your insight, Mr Mortgage.

]]> By: SteveNks http://mrmortgage.ml-implode.com/2008/09/05/9-of-all-mortgages-in-defaultforeclosure/comment-page-1/#comment-5422 SteveNks Sat, 06 Sep 2008 21:16:26 +0000 http://mrmortgage.ml-implode.com/?p=276#comment-5422 The Fan/Fred bailout is news that I did NOT want to hear, but knew was coming. Looks like Bill Gross (PIMCO) will get what he asked for... It's kinda weird watching a slow motion trainwreck coming & know it will injure me even though I'm just a spectator. The Fan/Fred bailout is news that I did NOT want to hear, but knew was coming.

Looks like Bill Gross (PIMCO) will get what he asked for…

It’s kinda weird watching a slow motion trainwreck coming & know it will injure me even though I’m just a spectator.

]]> By: REappraiser http://mrmortgage.ml-implode.com/2008/09/05/9-of-all-mortgages-in-defaultforeclosure/comment-page-1/#comment-5409 REappraiser Sat, 06 Sep 2008 05:15:01 +0000 http://mrmortgage.ml-implode.com/?p=276#comment-5409 HousingRealist - Sure enough, it's a conservatorship; here's the link. http://www.bloomberg.com/apps/news?pid=20601087&sid=azJ2NQoKxMnE&refer=home Abdul Kashif - Not Merrill Lynch, it's Lehman Bros. I will also note that 80% of it is commercial RE; usually it's RMBS not CMBS. So the other shoe (CRE) is now dropping. HousingRealist -
Sure enough, it’s a conservatorship; here’s the link.

http://www.bloomberg.com/apps/news?pid=20601087&sid=azJ2NQoKxMnE&refer=home

Abdul Kashif -

Not Merrill Lynch, it’s Lehman Bros. I will also note that 80% of it is commercial RE; usually it’s RMBS not CMBS. So the other shoe (CRE) is now dropping.

]]> By: HousingRealist http://mrmortgage.ml-implode.com/2008/09/05/9-of-all-mortgages-in-defaultforeclosure/comment-page-1/#comment-5405 HousingRealist Sat, 06 Sep 2008 01:39:50 +0000 http://mrmortgage.ml-implode.com/?p=276#comment-5405 Mr. M - Just received an email from NY Times that gov't is in process of taking over FNMA and Freddie. Turning into conservitorship. Mr. M – Just received an email from NY Times that gov’t is in process of taking over FNMA and Freddie. Turning into conservitorship.

]]> By: Out at the Peak http://mrmortgage.ml-implode.com/2008/09/05/9-of-all-mortgages-in-defaultforeclosure/comment-page-1/#comment-5403 Out at the Peak Sat, 06 Sep 2008 00:47:15 +0000 http://mrmortgage.ml-implode.com/?p=276#comment-5403 This number came out of left field for me even though I'm a housing-bear. Last time I read into the percentage of home borrowers in default, it was at 2%. The housing-bulls were cheering, "the market is fine because 98% of home owners are paying their mortgages." I want to say this was roughly three months ago. What is the percentage of houses with a mortgage? 50%? (Too conservative?) Nearly one in twenty households is in trouble? Crap! Ruffcut, you can change the type size easily in your browser. Click somewhere in the browsing window (to give application focus). Then hold Ctrl and push your mouse's scroll wheel up gradually. This number came out of left field for me even though I’m a housing-bear. Last time I read into the percentage of home borrowers in default, it was at 2%. The housing-bulls were cheering, “the market is fine because 98% of home owners are paying their mortgages.” I want to say this was roughly three months ago.

What is the percentage of houses with a mortgage? 50%? (Too conservative?)
Nearly one in twenty households is in trouble? Crap!

Ruffcut, you can change the type size easily in your browser. Click somewhere in the browsing window (to give application focus). Then hold Ctrl and push your mouse’s scroll wheel up gradually.

]]> By: Charles http://mrmortgage.ml-implode.com/2008/09/05/9-of-all-mortgages-in-defaultforeclosure/comment-page-1/#comment-5402 Charles Sat, 06 Sep 2008 00:27:13 +0000 http://mrmortgage.ml-implode.com/?p=276#comment-5402 Ruffcut..try pressing Control + Mr.Mortgage. Is there a link you know of for Alt-A loan density? Ruffcut..try pressing Control +

Mr.Mortgage. Is there a link you know of for Alt-A loan density?

]]> By: peterb http://mrmortgage.ml-implode.com/2008/09/05/9-of-all-mortgages-in-defaultforeclosure/comment-page-1/#comment-5401 peterb Sat, 06 Sep 2008 00:17:46 +0000 http://mrmortgage.ml-implode.com/?p=276#comment-5401 MM, is it possible to get an aggregate loan size from the Alt A and prime? I guess they're smaller than Jumbo's. But with all the HELOC type additions, I am thinking that the dollar amount is rising as the actual number of loans defaulting. MM, is it possible to get an aggregate loan size from the Alt A and prime? I guess they’re smaller than Jumbo’s. But with all the HELOC type additions, I am thinking that the dollar amount is rising as the actual number of loans defaulting.

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