FDIC OneWest Deal Harming Homeowners

FDIC Is Harming Financially Distressed Homeowners and Taxpayers Via Shared Loss Agreements Such As The One With OneWest (Formerly IndyMac)

Please view this ThinkBigWorkSmall video:

The Indymac Slap in our Face. 02.08.10



The video emphasizes what I have been saying (see FDIC Hurting Distressed Homeowners, IndyMac-OneWest Harming Homeowners and FDIC Hurting Homeowners: Case 1) about the IndyMac/OneWest Shared Loss Agreement with the FDIC. In short, that agreement is seriously hurting financially distressed homeowners and taxpayers by promoting foreclosures. To add insult to injury, as the video states, the FDIC is now going to the US Treasury to obtain more money, some of which will presumably be used to fund more crooked deals like this one. This only further my belief that the only good government is a small government. Our government is far too expensive and too big to monitor and prevent legalized theft like this Shared Loss Agreement. It is particularly infuriating that George Soros, the huge Democratic campaign contributor and main funder of MoveOn.org, is profiting handsomely from this deal via his large stake in OneWest. I thought George Soros, being the big time Democrat and huge supporter of Obama, cared about poor people? Get real. I guess it pays to buy your own president. I will look for one the next time I go grocery shopping. So much for "compassion" and "caring". It is all a lie. What a disgrace!

If you are a Middle TN homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact me to discuss your options including a loan modification and a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/home). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Robertson County TN, Maury County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Spring Hill TN, Gallatin TN, Springfield TN and Mt. Juliet TN). If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.

NAR Housing Affordability Index Useless

NAR Housing Affordability Index Useless
REALTOR Group's Housing Affordability Index Says Housing Has Never Been Unaffordable

According to this Seeking Alpha article, What's Wrong with the NAR Affordability Index?, the National Association of REALTORS (NAR) Housing Affordability Index (HAI) is utterly useless. The article states "housing never dipped into the level of unaffordable over the entire giant housing boom. This is mind bogglingly astonishing. If the affordability index failed to show housing was unaffordable during 2005-06, when would it ever show that?" In short, according to the NAR Housing Affordability Index (since 1989 when the HAI was created) housing has never been "unaffordable" (see graph below). This is absolutely absurd. How can prices fall so much from 2005 levels and those 2005 levels not be seen as unaffordable? It makes no sense and neither does the NAR HAI - it is absolutely useless.



As the graph indicates, a NAR HAI reading of under 100 means homes are relatively unaffordable. As you can see, the NAR HAI never goes below 100 so it means that NAR wants people to believe that homes have always been affordable. Therefore, when you hear NAR say "homes are affordable and interest rates are low, etc." please dismiss it as fools gold. It is a worthless statement. Unfortunately, the latest wave of buyers that purchased homes, particularly the first time tax credit buyers, fell victim to this nonsense and, as a result, many of them will be the next round of short sales and foreclosures.

If you are a home buyer or real estate investor in Middle Tennessee who is interested in purchasing a Fannie Mae foreclosure, a Freddie Mac foreclosure, bank foreclosure or REO, a short sale, home, investmenr ptoperty, condo, or other distressed real estate in order to get a great home or investment property at an attractive price without dealing with the difficult REO/foreclosure listing agents and you want aggressive and professional buyer representation, please contact me, or visit my website Search the Nashville Tennessee MLS and Middle Tennessee MLS - Find Nashville TN and Middle TN Short Sales, Pre-foreclosures, Foreclosures & REO's so that you can purchase foreclosed homes, short sale homes and other distressed real estate and properties in Nashville TN and Middle TN. I help home buyers in the Nashville Tennessee and Middle Tennessee Area (Rutherford County TN, Williamson County TN, Davidson County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Springfield TN, Gallatin TN and Mt. Juliet TN).

7.2 Million Delinquent Mortgages As Of December 2009

7.2 Million Delinquent Mortgages
7.2 Million Mortgage Loans In Default With An Estimated 1.0 Million REO's

According to this LPS Mortgage Monitor (a mortgage industry performance report provided by LPS Applied Analytics), LPS Mortgage Monitor: January 2010 Mortgage Performance Observations: Data as of December 31, 2009 Month-end and the Executive Summary, in December 2009 mortgage loan delinquencies and defaults increased significantly and foreclosures (REO's or bank owned properties) reached the one million mark.  The Executive Summary noted the following:

• Delinquency rates have surpassed the 10% level; factoring in foreclosures, the total non-current rate sits at 13.3%.
• Industry extrapolations indicate that over 7.2 million loans are currently behind on payments with an estimated nearly 1 million properties in REO status.
• Average number of days delinquent for loans in foreclosure has increased 63 percent from January 2008 to December 2009, rising from 249 to 406 days delinquent.
• Prime loans have experienced a worse pace of deterioration on a relative basis than subprime, FHA and all loans as a whole. Within prime loans, those with current unpaid principal balances between $417,000 and $600,000 have performed the worst.
• The percent of “new” serious delinquencies (from the population of loans that were current as of year-end 2008) sits at 4.64%, higher than any other year analyzed for the same period. Extrapolated counts result in approximately 2.3 million “new” 60-day delinquent loans from December 2008 to year-end 2009.
• Roll rates show the largest percentage increase in loans improving since the same period in 2008.
• 2009 marks the only time during the last five years that the six-month deterioration ratio has dropped from September to December.
• Foreclosure starts increased slightly in December – still the second lowest month in 2009 based on volume. Foreclosure sales were stable month over month and remain at relatively low levels.
• 2009 vintage loans are performing better than loans from any of the prior five years and have been steadily improving as more origination months are added to the loan pool. However, more restrictive underwriting is driving this behavior rather than actual improved consumer behavior. Liquidity is still not available where it is needed most.

My opinion of the above information is as follows:

• Most of the information above shows that mortgage loan delinquencies, and therefore, foreclosures, are getting much worse.  For example, the total percentage of delinquencies at 13.3%, the average number of days per delinquent loan, the continued deterioration of prime loans and the new mortgage loans serious delinquent rate of 4.64% are reasons to believe that things are getting much worse.
• The information which shows a positive trend is, for the most part, artificially and temporarily skewed.  For example, the improved roll rates, the 6 month deterioration ratio showing improvement and the 2009 vintage loans performing better are all skewed by the fact that most of these new loans are made to buyers/borrowers who perceive that their home or real estate purchase was a "good deal".  Since most of these buyers/borrowers used FHA/VA/USDA Rural Housing loan programs (see my blog post Our Phony Real Estate Market) they have little to no initial equity.  Due to the continued housing market decline, huge numbers of these buyers/borrowers will soon be in negative equity positions, which will result in increasing mortgage loan default rates among these buyers/borrowers in the near future.  In addition to that the relatively low foreclosure starts in December 2009 were artificially held down by government mandated loan modification and foreclosure moratoria, which will go end soon with the result of foreclosures increasing again.

If you are a Middle TN homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact me to discuss your options including a loan modification and a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/home). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Robertson County TN, Maury County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Spring Hill TN, Gallatin TN, Springfield TN and Mt. Juliet TN).  If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.

Homes Sales Plunge In December 2009

Homes Sales Plunge In December 2009

According to this MSNBC article, Home sales tumble as first-time buyers back off - December's drop is largest in more than 40 years, sales of existing (previously occupied) homes declined by almost 17% in December 2009, which is the largest such drop in over 40 years. 2009 overall saw home sales increase for the first time in 4 years (about 5% over 2008 home sales figures), but this came at a cost - home prices declined by over 12% in 2009, the worst such decline since the Great Depression.  Apparently, the December 2009 sales figures are 21% higher than the sales volume bottom of December 2008, but 25% lower than the December 2005 peak.  The article goes on to state that the housing market could worsen this spring when the the Federal Reserve ends its mortgage securities purchasing program, which has been artificially keeping interest rates low.  In addition to that the home buyer tax credit expires this spring (4/30/2010 to be exact).  According to the National Association of REALTORS (NAR), first-time buyers accounted for about 50% of all home sales in November 2009, but only 43% in December 2009.  Given this information, I think the ending of the home buyer tax credit this spring is a legitimate housing market concern.  The article states "December's sales fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million, from an unchanged pace of 6.54 million in November, the National Association of Realtors said Monday.  Sales had been expected to fall by about 10 percent, according to economists surveyed by Thomson Reuters."  I guess the proper technical term for this would be "oops".  In addition to the end of the mortgage securities purchasing program and the home buyer tax credit the problems of ever increasing foreclosures and 10%+ unemployment practically guarantee that housing prices will decrease in 2010.

Below are a few other highlights from the article:

• Anna Piretti, senior economist at BNP Paribas, said "The numbers clearly indicate that the rebound in housing demand observed so far has been largely supported by government programs."  I agree, but I predicted this months ago - see my blog post Our Phony Real Estate Market.
• Paul Dales, U.S. economist with Capital Economics, said "The report places a large question mark over whether the recovery can be sustained when the extended tax credit expires."  To me there is no "question mark" - there will not be a housing recovery any time soon.
• Lawrence Yun, chief economist of NAR, "cautioned that the (housing) recovery will depend on whether the economy starts adding jobs in the second half of the year."  Really!?  While I have always known that jobs spur housing, this is the first time I have heard Yun say this.  See my blog post Real Estate Fiction where I quote Yun as saying "With home sales heading up and inventories shrinking, prices are stabilizing. These are the key conditions needed for housing to lead the economy into growth mode. Once that happens, jobs will follow."  This does not match Yun's latest statement that the housing market depends on jobs.  Which one is it Lawrence?
• "The inventory of unsold homes on the market fell about 7 percent to 3.3 million. That's a 7.2 month supply at the current sales pace, close to a healthy level of about six months."  While this sounds reasonably positive it does not factor in all the "shadow inventory" that is lurking in the near future.  See my blog post Experts: More Rough Times Ahead for U.S. Economy to get a better idea of what I mean.

My conclusion remains the same: housing prices will continue to decline due to poor market conditions and lots of distress sales (short sales and foreclosures). Real estate and housing are simply showing the symptoms of the real problem: debt (more specifically - too much debt).

Short Sale and Foreclosure Help and Assistance in Middle Tennessee. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee or La Vergne Tennessee homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact me to discuss your options including a loan modification and a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/home). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Robertson County TN, Maury County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Spring Hill TN, Gallatin TN, Springfield TN and Mt. Juliet TN).  If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.

Tennessee Unemployment Rises Again - US Unemployment Rises Again - Housing Slumps Again

Tennessee Unemployment Rises Again - US Unemployment Rises Again - Housing Slumps Again

According to this Tennessean article, TN jobless rate rises unexpectedly, the Tennessee unemployment rate spiked to 10.9% in December 2009 from 10.2% in November 2009. During this time the US unemployment rate also increased. According to the article the GM layoffs, sluggish holiday hiring and continued losses in construction and transportation jobs were the main causes of the spike in unemployment. The article quotes Bill Fox, an economist at the University of Tennessee-Knoxville, as saying "Those are big losses in industries that had already experienced big losses. Bad weather and a weaker-than-expected housing market may explain the construction losses." This is all good information, but I fail to see how the spike in unemployment and weakening housing market were "unexpected". The economy is not recovering - there is no such thing as a "jobless recovery". There will be more foreclosures and short sales, which will be factors in pushing housing prices down further.

Short Sale and Foreclosure Help and Assistance in Middle Tennessee. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee or La Vergne Tennessee homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact me to discuss your options including a loan modification and a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/home). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Robertson County TN, Maury County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Spring Hill TN, Gallatin TN, Springfield TN and Mt. Juliet TN).  If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.