Posts Tagged ‘underwater’

96,000 Multifamily Housing Buildings in Chicago Area are Underwater ; 42 Percent of Small Rental Buildings at Risk of Default

96,000 Multifamily Housing Buildings in Chicago Area are Underwater ; 42 Percent of Small Rental Buildings at Risk of Default

Saturday Romance

Courtesy of Mish 

Citing a DePaul University study, the Chicago Tribune reports More than 42 percent of small rental buildings in Cook County are ‘underwater’

Owners of 96,000 two- to six-unit rental buildings in Cook County are upside-down on $12.6 billion of mortgage debt, potentially putting 42 percent of small rental buildings in the county at risk of default, new data show.

A study by DePaul University’s Institute for Housing Studies, released Wednesday, also found that $3 billion in multifamily building mortgages already are in foreclosure, affecting more than 32,000 rental units in Cook County, or 6.8 percent of multifamily mortgages. That compares with about 38,000 single-family homes in foreclosure in Cook County.

Researchers analyzed 25,822 sales of existing small rental buildings and 591 sales of buildings with seven or more units in Cook County.

Multi-family foreclosure rate spikes in Cook County

Here are some additional facts in a Chicago Sun Times article Multi-family foreclosure rate spikes in Cook County

The foreclosure rate on multi-family rental properties in Cook County has spiked, and falling property values have put 30 percent, or more than $13 billion in Cook County’s multi-family mortgages at default risk, according to a study released today by DePaul University’s Institute for Housing Studies.

The report found that there are more than 32,000 rental units in Cook County impacted by foreclosures. The percent of loans in foreclosure on small two- to six-unit properties jumped to 8.75 percent in the fourth quarter of 2009 from 1.67 percent five years ago. On large seven-plus unit rental properties foreclosure rates jumped from 0.3 percent in 2004 to 3 percent in the fourth quarter of 2009.

For one in eight rental apartment units, revenues are falling below operating costs for owners. Owners of about 74,000 rental units in Chicago or 13 percent of the market, are currently spending more to operate buildings than they are collecting in revenues, placing them at significant risk of decreased or discontinued maintenance.

“The multi-family foreclosure crisis has not received as much attention as the crisis in the single-family housing market, but the trends outlined in this report demonstrate that it should,” study author James Shilling, chair of Real Estate Studies, said in a statement.

He added the problem


continue reading


Tags: , , , , , ,




23% Of Homeowners Have Underwater Mortgages

23% Of Homeowners Have Underwater Mortgages

Courtesy of The Shocked Investor

The Wall St. Journal reports that 23% of U.S. homeowners owe more on their mortgages than the properties are worth. Approximately 10.7 million households has negative equity in their homes, based on data from First American CoreLogic.

The following map shows the percentage in each state (please click to enlarge):

underwater borrowers
 

The firm says that these properties are more likely to go into foreclosure and "get dumped into an already saturated market".

Housing prices have dropped so much that 5.3M households are tied to mortgages that are at least 20% higher than what their home is worth and over 520,000 of these borrowers have received a notice of default.

 


Tags: , ,




US Housing in a Deep Dive Says Buba

US Housing in a Deep Dive Says Buba

underwater in houseCourtesy of Jesse’s Café Américain

Do banks ever stop swimming?

Ben will need to print quite a bit more manure to throw on those green shoots, tout suite.

Its almost feeding time.

Bloomberg
‘Underwater’ Mortgages to Hit 48%, Deutsche Bank Says
By Jody Shenn
August 5, 2009 15:32 EDT

Aug. 5 (Bloomberg) — Almost half of U.S. homeowners with a mortgage are likely to owe more than their properties are worth before the housing recession ends, Deutsche Bank AG said.

The percentage of “underwater” loans may rise to 48 percent, or 25 million homes, as prices drop through the first quarter of 2011, Karen Weaver and Ying Shen, analysts in New York at Deutsche Bank, wrote in a report today.

underwater with sharksAs of March 31, the share of homes mortgaged for more than their value was 26 percent, or about 14 million properties, according to Deutsche Bank. Further deterioration will depress consumer spending and boost defaults by borrowers who face unemployment, divorce, disability or other financial challenges, the securitization analysts said.

“Borrowers may also ‘ruthlessly’ or strategically default even without such life events,” they wrote…

Home prices will decline another 14 percent on average, the analysts wrote.

Full article here >>.

 

 


Tags: , ,




Half All Mortgage Holders Are Expected To Be Underwater

Half All Mortgage Holders Are Expected To Be Underwater

By Barbara Kiviat, courtesy of TIME

mortgages house loan bank fail crisis
 
amanaimages / Corbis, courtesy of TIME

If you’re not already underwater on your mortgage, there’s a decent chance you will be. According to a new report from Deutsche Bank, up to 25 million American homeowners could eventually owe more than their house is worth. That would account for 48% of all mortgage holders.

This isn’t the first time we’ve heard exceptional numbers on upside-down borrowers. First American CoreLogic figures there were already 11 million homeowners in that position at the end of last year, and Moody’s Economy.com estimates we had reached 15 million by the end of March. The Deutsche Bank projection, the direst so far, assumes house prices nationwide will drop another 14%. (See how Americans are spending now.)

The problem is already a massive one. When the value of a house is less than its mortgage, a homeowner can’t sell and pay off his debt. If a house becomes unaffordable—because of job loss, say, or an adjusting mortgage interest rate—a homeowner is trapped. Academic research shows that underwater borrowers are more likely to default on their mortgage than those with positive equity. (See a chart showing the highest percentage of underwater borrowers.)

The Deustche Bank report adds another wrinkle. So far, the highest rates of underwater borrowers have been found among those people with subprime, Alt-A and Option-ARM loans. These loans, often sold to people with low credit scores or those stretching to be able to afford a house, were largely peddled at the height of the boom, and therefore often correspond to home prices that had nowhere to go but down. However, according to Deutsche Bank’s projections, a second-wave of upside borrowers is about to hit, and this time prime borrowers will account for the bulk. As of the end of March, the bank estimated that 16% of prime borrowers with conforming loans were underwater. By the end of March 2011, some 41% are projected to be. And about half of those are expected to owe at least 25% more than their house’s value.

The "good" news is that the worst of the problem is fairly concentrated geographically. Places where house prices have fallen the most have been hit the worst. That includes areas that saw the wildest speculation and overbuilding—like California,…
continue reading


Tags: , , ,




American Dream or American Nightmare?

Click here for a FREE, 90-day trail subscription to our PSW Report!

American Dream or American Nightmare?

foreclosureCourtesy of Mish

Here is an email from JMI that I would like to share. Jeff writes:

Green Shoots or Kudzu?

The most recent report on home foreclosures was very ugly. The second quarter foreclosure rate was at 889,000. Annualized, that is about 3.5 Million homes foreclosed upon in 2009. The national stats for homeowners in the US in 2007 was about 75 million homes owner occupied. The National Association of Realtors is projecting 5.5 million homes to be sold in 2009.

Additionally, this report highlights that 8.3 million households are now underwater and at risk of "walk aways". 2.2 million more will be underwater if we go down in prices another 5%. Option ARMS are just beginning to be reset and those numbers will peak in August of 2011 and will most likely drive all of these numbers higher with higher mortgage payments. These are all published numbers from non government agencies.

Here is a summary

  • US Households: 75 Million
  • 2009 Projected Foreclosures: 3.5 Million (1 of every 21 households)
  • 2009 Projected Home Sales 5.5 Million
  • Inventory of Foreclosures 2 1/2 years (assuming 25% of home sales are foreclosures)
  • Number of Homes Underwater 8.8. million (1 of every 8.5 households)
  • Number of Households underwater if prices decline another 5%: 11 Million (1 of every 6.8 households)

The American dream of owning a home has quickly turned into a nightmare of monumental proportions going well beyond almost anyone’s wildest and darkest thoughts.

As unemployment rises above 10% and more Americans are faced with their homes being underwater, the bottom in this market is years away and will be a drag on our economy like never seen before. Home ownership will never rebound to the 75 million again as millions look for cheaper rent and an opportunity to repair their balance sheets.

I really believe these are greenshoots; the Kudzu variety.

Jeff

Thanks Jeff.

For more foreclosures please see Foreclosure Filings Hit Record 1.5 Million; One in Eight Americans Delinquent; Obama’s Mortgage Rescues Create ‘Confusion’.

Jeff is correct. Foreclosures and defaults of all kinds and consumer balance sheet repair in general will be a drag on the economy for years, possibly even a decade. I Expect Seven Years of Subpar Growth and High Unemployment at a minimum.

Mike "Mish" Shedlock
 


Tags: , , ,




 
 
 

Zero Hedge

Baltimore - A Once Great City That Is Now The Murder Capital Of America

Courtesy of ZeroHedge View original post here.

Authored by Paul Gilbert via TheMostImportantNews.com,

Last Sunday I read an article and viewed the accompanying video of a Baltimore police Sergeant being kicked by “bystanders” as he attempted to arrest a person who, allegedly, spit in his face.

As a native Baltimorean, this incident was much more saddening to me, than shocking.

Before I continue, pe...



more from Tyler

Phil's Favorites

Wuhan coronavirus: we still haven't learned the lessons from SARS

 

Embed from Getty Images

 

Wuhan coronavirus: we still haven't learned the lessons from SARS

Courtesy of Diana Bell, University of East Anglia

The SARS outbreak in 2002-2003 was the first global pandemic of the 21st century. There were 8,422 reported cases and 11% of those infected with the virus died. Its cause was a newly identified coronavirus (a type of virus that causes respiratory infections): SARS Co-V. Early cases were linked to wildlife markets and...



more from Ilene

Kimble Charting Solutions

Bad News For Crude Oil Should Come From This Pattern, Says Joe Friday

Courtesy of Chris Kimble

It’s a good idea for investors to be aware of key indicators and inter-market relationships.

Perhaps it’s watching the US Dollar as an indicator for precious metals or emerging markets. Or watching interest rates for the economy. Experience, history, and relationships matter. And it’s good to simply add these to our tool-kit.

Today, we look at another relationship that has signaled numerous stock market tops and bottoms over the years, and especially the past several months, Crude Oil.

When crude oil tops or bottoms, it seems that ...



more from Kimble C.S.

Insider Scoop

5 Software-Application Stocks Moving In Thursday's After-Market Session

Courtesy of Benzinga

Gainers

Atlassian Corporation, Inc. (NASDAQ:TEAM) stock surged 9.7% to $145.50 during Thursday's after-market session. According to the most recent rating by Morgan Stanley, on January 13, the current rating is at Overweight.

Diebold Nixdorf, Inc. (NYSE:DBD) shares increased by 8.1% to $11.48. The most recent rating by DA Davidson, on December 13, is at Buy, with a price target of $17.00.

Telaria, Inc. (NYSE:TLRA) stock rose 4...



http://www.insidercow.com/ more from Insider

The Technical Traders

January 2018 Stock Market Repeat - Yikes!

Courtesy of Technical Traders

Our research team caught a very interesting price pattern that correlates with the Put/Call ratio.  We are alerting our friends and followers with this research post of this exciting, yet unconfirmed, set up today.

In late 2017, the US stock market rallied from July through December with moderately low volatility throughout this span of time.  Near the end of 2017, the US stock market price activity stalled, then began a renewed price rally in early 2018 (see the first BLUE & YELLOW BOX on the chart below). Then, in January 2018, a very broad market reversion event took place which ultimately resulted in a very broad market correction in October through December 2018 of just over 20%.

...

more from Tech. Traders

Biotech

Snakes could be the original source of the new coronavirus outbreak in China

Reminder: We are available to chat with Members, comments are found below each post.

 

Snakes could be the original source of the new coronavirus outbreak in China

Chinese cobra (Naja atra) with hood spread. Briston/Wikimedia, CC BY-SA

Haitao Guo, University of Pittsburgh; Guangxiang “George” Luo, Univers...



more from Biotech

Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Monday, 16 September 2019, 05:22:48 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: This chart says SP500 should go back to 2016 levels (overshoot will occur of course)



Date Found: Tuesday, 17 September 2019, 01:53:30 AM

Click for popup. Clear your browser cache if image is not showing.


Comment: This would be HUGE...got gold!


...

more from Chart School

Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: Memes...



more from Our Members

Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



more from Lee

Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



more from Bitcoin

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions





About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>