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alstry (35.03)

Green Shoots on Fire?

Recs

16

August 20, 2009 – Comments (4)

More than 13 percent of American homeowners with a mortgage are either behind on their payments or in foreclosure as the recession throws more people out of work, the Mortgage Bankers Association said Thursday.

The record-high numbers in the report are being driven by borrowers with traditional fixed-rate mortgages, rather than the shady subprime loans with adjustable rates that kicked off the mortgage crisis. As of June, more than 4 percent of all borrowers were in foreclosure and about 9 percent had missed at least one payment.

One in three new foreclosures between April and June was from a prime, fixed-rate loan, up from one in five a year earlier. Last year, subprime adjustable-rate loans caused the largest share of foreclosures.

If enough homes in a neighborhood are in foreclosure, the value of the remaining homes are distressed as well.  At this point, you  have to ask yourself, how many of the above homes are delinquent with property taxes.  What will this do to rising state and local revenue deficits?

There is only so much further we can cut.....before we are all cut.

4 Comments – Post Your Own

#1) On August 20, 2009 at 11:02 AM, alstry (35.03) wrote:

New jobless claims unexpectedly rise last week

Retail sales crashing and job losses rising......and we are being told the recession is over?

Why do you think? 

The farmer is always nicest to the turkey right before Thanksgiving.

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#2) On August 20, 2009 at 11:05 AM, alstry (35.03) wrote:

Hormel Foods profit up 49% despite weaker sales

If we just fired everyone in America...profits would explode for a quarter or two as the nation spent down its savings.....then we would shut down.

Right now we are shutting down......enjoy it while it lasts.

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#3) On August 20, 2009 at 11:19 AM, DownEscalator (22.43) wrote:

The jobless claims is huge and it's completely swept under the rug while the markets bid up the bank stocks for no underlying reason.

This is almost like deja vu to the summer of 2008 - leaders acted as if we were fine and there wouldn't be a recession.  Now leaders are pretending the recession is over and things will be great come 2010.  Meanwhile, California, Nevada, Arizona, Florida, etc. are insolvent because their budgets relied on boom-year property tax values that don't exist anymore.

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#4) On August 20, 2009 at 11:56 AM, ikkyu2 (99.38) wrote:

This is the Imelda Marcos' closet economy - there's always one more shoe to drop.

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