US Housing Market Facing "Doom"

US Housing Market Facing "Doom"
Nouriel Roubini (aka Dr. Doom) Says Housing Market Double Dip Is Here

According to this article, Dr. Doom Predicts Another $1 Trillion in Housing Losses, Nouriel Roubini (aka Dr. Doom) says the following about the US housing market:

• The country’s real estate problems are "underappreciated" and banks could face another $1 trillion in housing-related losses.
• The United States "real estate market, for sure, is double dipping. The apparent increase in prices has been fully reversed, demand is falling, and supply is going to increase."

Here is a more direct translation of what Dr. Doom is really trying to say:

• Foreclosures and other mortgage loan defaults will cost banks (and the US government and taxpayers) a lot more money.
• The governments' ongoing and incredibly expensive effort to artificially prop up home prices has failed.
• These foreclosures and other financially distressed homeowners will result in a large supply of homes for sale.
• This large supply of homes for sale will drive down housing prices, hence the term "double dip".

My opinion is and has been (see my blog posts: The Truth About Home Prices and Home Prices Decline Again) that the US housing market is absolutely double dipping despite unprecedented, artificial and unsustainable government market propping. The cost of this housing market propping effort in terms of wasted tax dollars and inflation will be absolutely staggering and devastating to the US economy. The government needs to immediately get out of the housing market, stop artificially propping up housing prices and let housing prices be determined by actual supply and demand (i.e. let there be a "real" real estate market). While this will cause more short sales and foreclosures in the short term, it will ultimately stabilize the housing market, make homes more affordable and avoid the severe inflationary effects of the US government's current expansionist monetary policy (i.e. artificially low interest rates, expanded FHA lending, the US Treasury's 1.25+ trillion mortgage security purchase program, continued taxpayer funding of the losses incurred by Fannie Mae and Freddie Mac, the Federal Reserve's printing of money via QE1 and QE2, etc.). Regardless of what the government does or does not do, there will be a high level of short sales and foreclosures over the next several years.

Free* Short Sale and Foreclosure Help and Assistance for Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Murfreesboro, Smyrna, La Vergne, Columbia, Mt. Juliet, Springfield, Gallatin and Middle Tennessee Financially Distressed Homeowners and Property Owners. Stop the Bank from Foreclosing with a Quick Cash Offer to Get the Short Sale Process Started. 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 Jim 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).  Jim helps 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 Get Free* Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR, Real Estate Expert and Real Estate Investor. (*Free: In a real estate short sale, the bank or mortgage company usually approves and pays all of Jim's commissions and fees. Therefore, in most cases his short sale help, foreclosure help, foreclosure consulting, and foreclosure prevention and brokerage services are essentially free to distressed homeowners and property owners in Nashville and Middle TN.  Jim does not charge any upfront short sale fees or commissions and he generally doesn't get paid anything unless the short sale closes and even then the bank essentially pays Jim's fees. As a result, there is basically no risk to Nashville Tennessee homeowners and property owners in foreclosure.)

FHA Insured Mortgage Foreclosure Help

FHA Insured Mortgage Foreclosure Help
How to Stop Foreclosure If You Have an FHA Insured Mortgage Loan
FHA Insured Mortgage Loan Short Sales (HUD Pre-Foreclosure Sales Program)

Missing a mortgage payment (i.e. defaulting on your mortgage loan) creates a lot of personal and financial stress. This stress is even worse if the financially distressed homeowner and borrower receives a foreclosure notice, Notice of Default, or Notice of Trustee's Sale (or Notice of Substitute Trustee's Sale) from the mortgage lender or bank, or an attorney representing the mortgage lender or bank. This stress is absolutely legitimate and understandable since foreclosure severely damages a borrower's credit, and, in many states, will leave the borrower open to the mortgage lender/bank pursuing the borrower for the deficiency balance (essentially, the amount of the mortgage loan owed by the borrower, but not recovered by the mortgage lender/bank upon the sale of the foreclosed property). Declining housing prices have left many homeowners in a situation where they owe more than the market value of their home. The deficiency balance is a serious issue since when mortgage lender forecloses and resells the property the amount they recoup can be substantially less than the amount owed by the borrower. However, there is some good news for homeowners in foreclosure. If the property is the borrower's home (i.e. principal residence / primary residence), the borrower obtained a Federal Housing Administration (FHA) Insured Mortgage Loan (either when they purchased the home, or when they refinanced the mortgage loan), and the borrower wants to sell the home, there is a way to possibly avoid foreclosure altogether and to ensure that they are never pursued for the deficiency balance.  Since the FHA is part of the U.S. Department of Housing and Urban Development's (HUD), financially distressed homeowners can request help under a HUD Loss Mitigation Program known as the HUD Pre-Foreclosure Sales Program (aka HUD PFS Program).   Some valuable information about the HUD Pre-Foreclosure Sales Program can be viewed here: HUD Pre-Foreclosure Sales Program Facts Sheet and HUD Pre-Foreclosure Sales Program Mortgagee Letter 2008-43.  As these documents suggest, the HUD Pre-Foreclosure Sales Program has certain borrower financial and hardship requirements as well as property type, use and market value requirements.  If a financially distressed homeowner is not sure if they qualify for the HUD Pre-Foreclosure Sales Program they should seek out the advice of an experienced short sale and pre-foreclosure real estate broker who has been through the HUD Pre-Foreclosure Sales Program before.  If the financially distressed homeowner is not sure if their mortgage loan is FHA Insured, they can find out by looking at the Settlement Statement (HUD-1) from when they purchased the property, or refinanced the mortgage loan.  In the first box on the top left hand side of the HUD-1 there is a box titled "B. Type of Loan".  In that box the type of mortgage loan will be checked. If "FHA" is checked then the borrower's loan is FHA Insured, and, therefore, they may be eligible to participate in the HUD Pre-Foreclosure Sales Program.  If the financially distressed homeowner does not have a copy of the HUD-1 then they should contact an experienced short sale and pre-foreclosure real estate broker since they should be able to look up this information, or at least help find out if the mortgage loan is FHA insured.  If the mortgage loan is FHA insured then the borrower should apply for the HUD Pre-Foreclosure Sales Program.  If the borrower is accepted into the program, they are protected from foreclosure for a period of not less than 4 months and will never have to worry about a deficiency balance.  That alone is worth the time and effort spent on the HUD Pre-Foreclosure Sales Program application process.  here again, an experienced short sale and pre-foreclosure real estate broker who has been through the HUD Pre-Foreclosure Sales Program before will be a great help to a financially distressed homeowner since they will be able to assist in the application process.

Nashville and Middle Tennessee Short Sale and Foreclosure Help and Assistance for Homeowners and Property Owners in Financial Distress. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee, La Vergne Tennessee, or Middle 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 Nashville Tennessee and Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR, Expert and Real Estate Investor. 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, Real Estate Expert and Real Estate Investor.

Foolish Banks Foreclose Again

This article, The Abysmal State Of Mortgage Finance As Shown By One House, Two Foreclosures, absolutely hits the nail on the head and shows that bankers regularly hit their thumbs with hammers. This "lending into sink hole" needs to stop. "Saving" the housing market cannot be defined as artificially propping up housing prices with taxpayers paying up the huge losses on the long way down to the bottom that result from this foolish and reckless policy. I personally know of a very similar situation involving a home in Murfreesboro Tennessee, but this one is even worse. A builder defaulted on a construction loan secured by a vacant lot and the house next door that was 99% complete. On 10/20/2008, the bank (Pinnacle Financial Partners – The "Official bank of the Tennessee Titans"), foreclosed and took the properties back as REO's. On 5/29/2009 the bank resold the house and lot to a home buyer through an online auction company for $264,400 (including the 5% auction premium). At that time I was personally interested in buying the house (not the lot - it has little value in this market), but was only willing to pay in the $190K's including the auction premium. Obviously, I was grossly outbid by this foolish buyer (I wonder if they were a tax credit buyer?). Here is the really scary part. The bank, Pinnacle Financial Partners, loaned that buyer $236,696 (i.e. about 90% of the purchase price) on a "non-qualifying" basis. This means the buyer essentially got a no-doc/stated income type of mortgage loan from Pinnacle Bank. Of course the reason the bank did this was to artificially inflate the price that they would get for the property when they were selling it as an REO. Less than 6 months after this bogus sale closed I received a postcard in the mail from a REALTOR marketing this same house for sale. Apparently, the buyers of this home needed to sell rather quickly after buying it! Their attempt to sell the property failed (they were asking in the low $300K's), and, as a result, on 10/12/2010 the bank foreclosed on the house and lot for the 2nd time in less than 2 years. The really, really scary part is that I personally know that this very same bank did the same exact thing with other properties with the same bad, but, predictable, results. This bank was practicing what I call "incestuous lending", which is very similar to what Fannie Mae, Freddie Mac and the FHA are doing when they offer all types of incentives and special financing to entice buyers to buy their foreclosures so the banks can essentially take a dead asset off one side of their books and replace it with a questionable asset on the other side of their books. It's like saying someone who never repaid the personal loan they owe you and you just say OK and let their brother or sister guarantee the payments even though they are just as reliable. Meanwhile, you still haven't received any actual money, just a promissory note with another name on it. A person who works for a major bank recently told me that once a home is foreclosed on there is an 80% chance that it will be foreclosed on again within 10 years. Now I know why. The banks keep inflating the prices of their REO's by obtaining buyers who are lured into the purchase by the banks' artificially easy to get and artificially cheap financing. In other words, the banks are getting generally unqualified and ignorant buyers who are overpaying for the foreclosed properties. Therefore, it should be no surprise that these same home buyers end up in financial trouble in such a short period of time at such an alarming rate. In addition to the buyers who bought homes at the top of the market, those who bought homes with no-doc/stated/exotic mortgages, those who bought homes with subprime loans, prime borrowers who have lost their jobs or suffered a reduction in income, we now have to add the foolish foreclosure buyers who overpaid in a declining market to the list of homeowners who have a high risk of defaulting on their mortgage loans. This mess just keeps getting worse. Home prices are going to keep declining for quite a while (see: Home Prices Decline Again and The Truth About Home Prices).  As a result of all of this, I know there is going to be a lot of short sales and foreclosures over the next several years.

Nashville and Middle Tennessee Short Sale and Foreclosure Help and Assistance for Homeowners and Property Owners in Financial Distress. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee, La Vergne Tennessee, or Middle 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 Nashville Tennessee and Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR, Expert and Real Estate Investor. 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, Real Estate Expert and Real Estate Investor.

Home Prices Decline Again

Home Prices Decline Again

As I have been predicting for quite some time (see: The Truth About Home Prices), housing prices are declining again in the aftermath of the second ill advised "first time home buyer tax credit" (should be renamed "Fool's Gold Part 2").

According to this article, FHFA Monthly Home Prices: September 2010, home prices have now fallen below their levels in September 2009. (The article states: "The FHFA monthly HPI are formulated from home purchase information collected from mortgages that have been sold to or guaranteed by Fannie Mae and Freddie Mac.").



As you can see by the graph above, the home price trend clearly shows that home prices are declining again. As a result of this further (and expected) housing price decline, there are going to be an elevated level of foreclosures, short sales and other distress sales over the next several years. Due to these issues, the overall poor economy, and the fact that home prices are still historically high, housing will not begin recovering for at least 4-5 years and even then price gains will be very modest.

Nashville and Middle Tennessee Short Sale and Foreclosure Help and Assistance for Homeowners and Property Owners in Financial Distress. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee, La Vergne Tennessee, or Middle 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 Nashville Tennessee and Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR, Expert and Real Estate Investor. 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, Real Estate Expert and Real Estate Investor.

Quantitative Easing Explained for Us Plebians

Quantitative Easing Explained for Us Plebians

The video below, Quantitative Easing Explained, is a simple, but very funny and sadly true video that explains the intended and unintended effects of the Fed's latest round of "Quantitative Easing" (QE2). I just had to share it.

In my opinion, this QE2 will result in soaring prices of basic living necessities (food, utilities, medical care, etc.) without causing the intended goal of igniting the economy and inflating housing prices. Since housing sales are now (unlike in the past) extraordinarily dependent on buyers who borrow practically the entire amount of the purchase price via loan programs such as FHA, VA, USDA, THDA and other such loan programs, housing prices are now extremely dependent on mortgage loan interest rates. If the Fed's QE2 does in fact cause significant inflation (many economists believe this will happen), mortgage loan interest rates (remember the 1970's) will also surge with the result that buyers will not be able to afford the high interest monthly payments. Therefore, it is very possible that QE2 will actually cause housing prices to deflate (i.e. decline) further. I think the possible general inflation without corresponding household income inflation will reduce the amount of money homeowners have available after paying for basic necessities. This plus a further housing price decline will create even more foreclosures, short sales and other distress sales over the next several years. See my previous blog post, The Truth About Home Prices) to get an idea of how housing prices compare to historic housing prices.



Nashville and Middle Tennessee Short Sale and Foreclosure Help and Assistance for Homeowners and Property Owners in Financial Distress. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee, La Vergne Tennessee, or Middle 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 Nashville Tennessee and Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR, Expert and Real Estate Investor. 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, Real Estate Expert and Real Estate Investor.