"Home foreclosures as well as the rate of homes entering the foreclosure process rose to a record in the third quarter as homeowners battled slumping house prices and spiking loan payments, the Mortgage Bankers Association said yesterday.
Doug Duncan, MBA's chief economist:
"[About 994,000 US households are in foreclosure]. Not all of them will lose their house, but that's how many are currently at serious risk of losing their house."
Holy crap! That's almost a million people!
Lenders agree to freeze 'teaser' rates
"We should not bail out lenders, real estate speculators, or those who made the reckless decision to buy a home they knew they could never afford. But there are some responsible homeowners who could avoid foreclosure with some assistance."
Yeah, we should just shovel money into war contractors pockets!
Nothing but shit for you, 'Murka!
A recent surge in defaults, part of the worst housing slump in more than two decades, has piled up billions of dollars in losses for big banks, hedge funds, and other investors while roiling financial markets worldwide. Some economists think the housing bust may become severe enough to push the country into recession."
News Analysis: On Mortgage Relief, Who Gains the Most?
"At least one thing is clear about President Bush’s plan to help people trapped by the mortgage meltdown: it is an industry-led plan, not a government bailout. Although Mr. Bush unveiled the plan at the White House on Thursday, its terms were set by the mortgage industry and Wall Street firms.
I don't like it, then!
This wasn't done for the struggling American!
This was done to bail out the banks!
The number of people who actually obtain help would be smaller, because each borrower would face tests aimed at weeding out those considered too hopelessly in debt and those who make too much money to justify relief.
In one curious twist, the plan could eliminate many who have good credit scores or managed to improve their credit scores, because the good ratings would be a sign they do not need help.
Translation: FUCK YOU, America!
The administration’s theory is that there is a “sweet spot” in the market where it makes more financial sense for lenders to offer some relief than it does to foreclose on homeowners.
Indeed, there were rumblings of rebellion among some institutional investors.
Roger W. Kirby, managing partner at Kirby McInerney, which has represented investors in class-action lawsuits over securities:
“Mr. Paulson has overestimated the generosity of people on Wall Street.”
That's Bush's solution, huh? We are all fucked!
Some Needing Mortgage Aid Won’t Get It
"When Jirina Koy heard that President Bush was announcing a freeze yesterday on mortgage interest rates, the Stockton, Calif., homeowner felt a flicker of hope.
It was quickly extinguished. After calling a nonprofit housing assistance center, Ms. Koy learned that her mortgage, for all the trouble it was causing her, was not likely to be one of those qualifying for relief.
She has a so-called option loan, which gives her the choice of how much to pay every month. Heavy in debt, she usually chooses the minimum. The unpaid interest and principal is added to her mortgage balance, which means her loan keeps getting bigger.
Ms. Koy’s woes were compounded by an ill-advised refinancing two years ago:
“I got all these calls from brokers all the time — ‘You could pay off debt, pay off the car loan, make extra money every month, blah blah.’ The only way that would have made sense is if I had cut up my credit cards and nothing else had come up,” Ms. Koy said. “But something else always comes up.”
She took out $60,000. Ms. Koy’s husband is disabled and has not worked for a decade. The couple’s credit card debt is back up to $25,000, in part because of their daughter’s medical bills. Their three-bedroom house is worth about $250,000, but they owe much more on it.
Sounds like they are fucking screwed!
Tom Gutierrez, a school bus driver who lives in West Covina, Calif., who bought his house in 2004, too early to qualify for the freeze, is negotiating a new loan:
“Many home buyers didn’t do our homework. Maybe some kind of education will help as well.”
Yeah, the American homeowner deserves to have it shoved up their ass!
It'll EDUCATE YA!!!
I find this guy's comments offensive, although it is standard Times' tactics!
The American people did nothing to deserve this, and the banks are making $$$ off it!
Mortgage Firm to File Bankruptcy
"The subprime mortgage lenderDelta Financial Corporation said yesterday it plans to file soon for bankruptcy protection, after losses mounted and an agreement to obtain new financing fell apart. The Woodbury, New York, company also said it intends to stop taking mortgage applications, and it does not believe it can continue as a going concern."
Toll Brothers Has a Losing Quarter
"Toll Brothers Inc., the nation’s largest builder of luxury homes, said yesterday that it had a loss for its fourth quarter during what the company calls the worst housing downturn in decades. It is the first quarterly loss recorded by the builder in 21 years.
Robert I. Toll, chairman and chief executive:
“By many measures, fiscal 2007 was the most challenging of the 40 years that Toll Brothers has been in business.”
I really don't have any sympathy for the poor richers!
Labor Market Appears to Weaken
"First-time claims for unemployment benefits fell by 15,000 last week, but a four-week moving average of new filings was the highest in more than two years, the government said Thursday in a report showing a deteriorating labor market."
A day after the lying government told us everything was great!
