The UK under the loop – Safe Haven for How Much Longer?

One of the extraordinary effects of the euro zone debt crisis has been the manner in which the market and media have taken the notion of safe haven investment to heart. Consider for example the fact that the situation we are currently in largely comes down to too much debt tied to real . . . → Read More: The UK under the loop – Safe Haven for How Much Longer?

Zero is good

Nothing new for us… but check out the latest from Zillow on underwater mortgages in the US by metro area: Despite Home Value Gains, Underwater Homeowners Owe $1.2 Trillion More than Homes’ Worth

I believe it is showing we are by far the lowest incidence of ‘underwater’ mortgages, i.e. those whose home values are . . . → Read More: Zero is good

The Morality of Walking Away

There appears to be a misunderstanding:

Now, with the property worth roughly $60,000 less than the balance of their mortgage, Martin, 68, has been giving serious thought to just walking away, a process lenders call “strategic default.”

“Guilt and morality are one side, and objective financial analysis are on the other side,” Martin said. . . . → Read More: The Morality of Walking Away

Protest what?

I have looked at this a lot, but never had a reason for posting about it.  So now I note Bram passed on the image that highlights the conundrum going on Downtown and elsewhere as folks struggle to figure out where to focus their anger. It reminded me of  what may be the ultimate financial . . . → Read More: Protest what?

Current Home Loan Trends

With economic uncertainty continuing to hamper economic growth, inflation has been non-existent, and mortgage rates have remained low.  Current rates for conforming loans have dropped below the lows seen late last year to set new record lows for fixed rate mortgages, 5 year ARMs, and 1 year ARMs.

However, many new home buyers looking . . . → Read More: Current Home Loan Trends

Owe No Man Anything

Well, this is interesting:

In a June 21 response, attorneys for the church indicated the church had strategically defaulted on the mortgage after learning its real estate – a 23,635-square-foot office building housing the church – is worth only $2.375 million vs. the $7.653 million owed to the bank.

This strategic default involved an . . . → Read More: Owe No Man Anything

Wanted: International Buyers of Danish Mortgage Bonds

Not too long ago, I compared the Japanese economy to a bumblebee because of the economy’s ability to keep on chucking along even as the government debt/GDP ratio stormed above the 200% mark. I am starting to think that the same comparison might be warranted too in the case of my home country.

. . . → Read More: Wanted: International Buyers of Danish Mortgage Bonds

What's a decimal point worth?

Not new, but from Zillow and via Calculated Risk is a table of negative equity in the largest real estate markets in the US.

Phoenix: 68% of all mortgages are ‘under water’ calculated as the percentage of single family homes with mortgages where the equity value less than current market value.

Pittsburgh: 6.8%.

The disparity . . . → Read More: What’s a decimal point worth?

How The Securitization Of Mortgages Impacts The Average Citizen

Trace: Welcome back to the Runtogold.com Podcast. I have with us Aaron Krowne, who operates ML-implode.com, the Mortgage-Lender-Implode-o’ Meter. Welcome, Aaron!

Aaron: Hey Trace, good to talk to you again.

Trace: Live from DC, it sounds like. So, we were talking about a little bit before the show about this foreclosure gig and . . . → Read More: How The Securitization Of Mortgages Impacts The Average Citizen

Correlation, Causality and Common sense

WSJ looks at an updated metric of ‘low risk housing markets’.

Yeah, yeah, there we are… just as we have been for years at this point.  What makes this year’s iteration noteworthy is the WSJ’s summary for why Pittsburgh’s ranking is so low. Verbatim from the WSJ:  “Pittsburgh, where the natural gas industry is . . . → Read More: Correlation, Causality and Common sense