FL: Foreclosures up 39 percent in 1Q (national increase up 38%)

[UpInArms]

http://msnbc.msn.com/id/12911616/

NORTHEAST FLORIDA -- The rise in foreclosures that analysts predicted would follow an easing in lending restrictions, low interest rates and creative mortgage products has emerged in metropolitan Jacksonville.

Recently released data from California-based RealtyTrac Inc. showed the five-county metro area experienced a 39 percent increase in foreclosures over last year's first quarter, or 3,579 foreclosures for the first three months of this year compared with 2,570 for the same period in 2005.

The increase was just above the national foreclosure increase of 38 percent for the first quarter, which RealtyTrac analysts said could mean foreclosures going above 1.2 million in the United States this year.

<snip>

"More money became available for risky borrowers and you only have to be in a house six months before refinancing," said Patrick, co-owner of First Coast Trust. "Banks and lenders have been doing what the government wants -- getting people into homes."

While the goal of making as many Americans as possible homeowners is a positive one, Patrick said increasing consumer debt and a lack of savings could put already risky borrowers into default.

...more...

[peacebird]

1. but the economy is strong and growing - bush said so today

:eyes:

[Bjorn Against]

5. The economy is strong and growing if you are a CEO

If you are worth billions then you better believe the economy is looking pretty rosy under Bush. It is the rest of us that are struggling, and we are not a part of this economy. Bush only cares about the economic outlook of the wealthy, he does not consider us to be a part of the economy.

[peacebird]

8. he also said that the restaurant business was the US's largest employer

which also tells you something ( :puke: ) about how "strong and growing" the economy is...

down is up.... black is white... war is peace... todays economy is strong and growing....

sigh.

[AllieB]

10. When people can't afford to go out to eat anymore

those jobs will suffer too. I waited tables in the early '90s during the Bush I recession, and the restaurant, which was once popular, came close to closing down a few times. When gas and the cost of living go up, no one has $$ to spend on extras like going out to eat.

[peacebird]

18. true statement

restaurants will suffer, hotels will lay off help...

the service industries are the canary in the coal mine in some ways.

[goforit]

2. Here we go folks, it's gonna be a rocky road.

[neuvocat]

4. Looks like Greenspan was right.

The housing boom is over. I wonder just exactly how those developers are gonna sell those 500,000 townhomes across the street from my apartment.

[AX10]

13. 500,000 townhomes in one community???

Is it more like 5,000?

[neuvocat]

14. Nope. 500,000.

I still can't believe it either. They're nice but not that nice.

[krkaufman]

15. Ummm... methinks the poster meant $500,000....??

... rather than 500,000 units ...?!?

[Robbien]

3. Slightly off topic, but

OMG they are opening a futures market on RE values!

CME housing futures debut as bubble deflates

CHICAGO, May 22 (Reuters) - The Chicago Mercantile Exchange launched its suite of housing futures contracts on Monday, in time for what some see as a full-fledged deflation of the U.S. housing bubble.

The largest U.S. futures exchange has billed its housing derivatives, tied to the S&P/Case-Shiller Home Price Index (CSHPI), as the first financial tools that make it possible to trade fluctuating U.S. real estate values. The CME is owned by Chicago Mercantile Exchange Holdings Inc. (CME.N: Quote, Profile, Research), which went public in December 2002.

Some 11 contracts were listed on Monday -- a U.S. composite index and separate readings based on home price trends in Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco and Washington.

Speculation on top of speculation on top of speculation.

[Tandalayo_Scheisskopf]

6. This is a market in housing derivatives.

Derivatives means they will be buying and selling debt.

Which there will be a lot of. Especially bad debt, if this report is any indicator.

[Robbien]

7. I don't believe that is correct

RE debt is already traded (i.e Fannie Mae)

Derivatives are are financial securities whose value is derived from another underlying financial security, basically speculation. Buying a derivative is nothing except buying a bet the underlying financial security is going to change its value in a certain way.

[depakid]

11. So how are they packaging these new mortgage "products"

into securities and how will the newer "asset backed" instruments like credit default swaps perform in a panic?

Inquiring minds want to know....

[krkaufman]

16. "speculation on top of speculation" --- exactly

I was annoyed to hear that something like 4 out of 10 existing home purchases were by those already with a home; i.e. second home purchases. In other words, those who have are getting more; those who have not, are being left behind.

Prices are being driven-up by speculation, second/third home purchases by the wealthy, and by exceedingly risky lending.

[madmark]

9. and the bankruptcy law has been gutted that could have helped some

of these people keep their homes. A law change that many democrats (Biden, Sen-MBNA, was the leader) colluded with the Reps on. Repeal of this POS Bankruptcy Reform should be high on any agenda by the new congress.

[bedpanartist]

12. It's not all bad news, at least we're seeing some suburbs become ghettos

isn't that what the right wing wants? A giant teeming American ghetto from coast to coast?

[krkaufman]

17. hyperbole aside, where are suburban ghettos arising? n/t

[bedpanartist]

19. the older suburbs

usually refered to as "inner-ring" suburbs surrounding inner-cities in America. It's happening here all around the city of Dayton. Kettering, Ohio is a fine example of an old-school suburbs turning ghetto.