Home buyers are spending more of their incomes on houses than now than they ever did before the housing bubble.
In Los Angeles, San Francisco and San Jose, California, the median house price is nearly seven times the median income.
However, because of historically low interests rates, consumers are making lower mortgage payments, so they aren’t feeling the higher prices.
Real estate watchers fear that this could be creating a new housing bubble.
Thousands of Bank of Ireland and Bristol & West borrowers customers face a doubling of interest on mortgage interest payments this year after the banks decided to ramp up tracker rates.
Buy-to-let borrowers are being hit by a bigger hike than residential customers: they will see their mortgage rate jump to 4.49 per cent on top of Bank of England base rate - or 4.99 per cent compared to the current rate of 2.25 per [...]
During the last housing crash, the big banks begged the federal government for help and they received it, but when average Americans ask the big banks for help most of the time the banks show no mercy whatsoever. If you fall behind on your mortgage payments, the big banks have shown that they are willing to be absolutely ruthless. They will change locks in the middle of the night, they [...]
globaleconomicanalysis.blogspot.com / By Mike “Mish” Shedlock / December 27, 2012 1:39 PM
Looking for a synopsis of the problems facing Spain? A summary of bullet points I gathered from the Spiegel article Evictions Become Focus of Spanish Crisis shows just how hopeless the situation is.
There were a record number of evictions in 2012, foreclosures are expected to increase in 2013.
Some 400,000 eviction proceedings have been opened in Spain since 2007, with roughly half of the [...]
Fabian Calvo buys and sells $100 million worth of real estate and distressed debt a year and says, “Over 20 million houses, on any given night in America, are completely sitting vacant.” According to Calvo, the economy is being helped by “shadow stimulus.” It’s coming from millions of underwater homeowners who have stopped making mortgage payments. Calvo also says banks are not foreclosing “. . . because the inventory has [...]
A massive police escort accompanied tens of thousands of Spaniards marching on the country’s parliament in Madrid as part of anti-austerity protests.
The 2.3-kilometers march organized by the “Surround parliament” protest group was closely guarded by law enforcement with dog teams, vans with reinforced windows, officers in full riot gear as well as mounted police.
At the Parliament, the crowd was greeted by an even larger police presence and pushed them back [...]
From Dividend Growth Stocks:
Many of our expenses like utilities and mortgage payments are on a monthly cycle. It is nice when we have monthly income to match up with the monthly expenses — which is why investments that pay monthly dividends are so popular. Just because an investment pays a monthly dividend, doesn’t necessarily mean it is a good fit for investors in dividend growth stocks.
Those of us that invest [...]
by Mamta Badkar
Analysts have been out saying housing has turned the corner.
Adding to signs of a recovery is a report from Zillow that shows that the number of homeowners in negative equity – in which a borrower owes more on their mortgages than their home worth – is declining. Being in negative equity is also known as being underwater.
30.9 percent of homeowners with with mortgages or 15.3 million households were underwater in the second [...]
The shock of losing a precious job in a town afflicted by high unemployment is always hard.
A foundation for a stable family life and secure home instantly disappears, replaced with a future filled with fears over health insurance, missed mortgage payments and the potential for a slip below the breadline.
But for Bonnie Borman – and 170 other men and women in Freeport, Illinois – there is a brutal twist to [...]
One Texas woman finally got the $300,000 that Bank of America owed her. And it only took four years.
The Southeast Texas Record has the whole sad story, but here’s the gist: Trudie Crutchfield of Beaumont, Texas, sued BofA in 2008 after the bank foreclosed on her hurricane-wrecked house. That natural disaster forced Crutchfield to miss a few mortgage payments, which Countrywide, her loan servicer, said was fine. Then the lender reversed itself, [...]
oel Brinkerhoff and David Wallechinsky
July 12, 2012
An often overlooked, but nonetheless important aspect of the foreclosure crisis has involved property tax lien foreclosures.
When a property owner falls behind on mortgage payments, local governments can impose a tax lien that, if not paid off, can result in foreclosure proceedings. In order to secure revenue, the governments sometimes sell the liens to private investors, who, in some instances are able to [...]
As RBS’ ATM “Glitch” Enters Fifth Day, The Bailed Out Bank Issues A Statement
Over the past week, various entities controlled by bailed out UK-bank RBS, focusing primarily on NatWest, have seen clients unable to access virtually any of their funds, perform any financial transactions, or even get an accurate reading of their assets. The official reason: “system outage”… yet as the outage drags on inexplicably for the 5th consecutive day, [...]
Today’s AM fix was USD 1,612.75, EUR 1,286.19, and GBP 1,034.94 per ounce.
Yesterday’s AM fix was USD 1,589.25, EUR 1,271.40, and GBP 1,025.65 per ounce.
Silver is trading at $28.90/oz, €23.16/oz and £18.65/oz. Platinum is trading at $1,455.20/oz, palladium at $617.60/oz and rhodium at $1,200/oz.
Gold rose $11.40 or 0.71% yesterday in New York and closed at $1,611.60/oz. Gold started out trading sideways in Asia and then edged up in early [...]
BNI depositors unable to make withdrawals / payments, payments of utility bills, mortgage payments, taxes
Peter Giordano, Adiconsum: “Grave of the Bank of Italy’s attitude that takes action without considering the impact on depositors, and especially on single-income families and pensioners”
Adiconsum Bank of Italy asks for an urgent meeting and the lifting of the
The Bank of Italy authorized the suspension of payments by Bank Network Investments SpA (BNI) without communicating anything [...]
As the Eurozone crisis deepens more than 100,000 people could lose their homes if mortgage repayments rise by just £20 a month – a leading charity has revealed today.
The Bank of England has warned that as UK lenders are hit by higher borrowing costs families should prepare to pay more as the increase is passed down to consumers.
This could lead to thousands losing their homes if the hike results [...]
As leader of the free world President Obama will be used to making speeches to millions of people around the globe.
So he might have felt the occasion was a little beneath him yesterday when he stopped off in Reno, Nevada, to deliver an address outside a couple’s garage.
In what could be a disastrous photo opportunity for the President’s campaign, Mr Obama spoke to a handful of people in the crucial swing [...]
Whats better ?
Bailing out banks with 5 Trillion Dollars…. banks who will then use that money against the very people who should of been relieved of debt as COMPENSATION for the banks getting all this free money.
20,000,000 households with No Mortgage obligations to pay because their creditor went belly up?
20,000,000 households with FDIC insurance and 150 ~200,000$ in the bank to spend on home improvement.
20,000,000 households with real assets (land [...]
All the best tax breaks are Made in America
Posted by Lisa Pollack on Apr 12 16:26.
While in some countries avoiding tax is a national pastime, in America the government offers all manner of mechanisms to reduce one’s bill.
From deductions on mortgage payments, to the low rates on long-term capital gains that private equity moguls benefit from, to generous accelerated depreciation methods on a wide range of property.
Thinking the last one [...]
(Reuters) – The U.S. apartment vacancy rate in the first quarter fell to its lowest level in more than a decade, and rents posted their biggest jump in four years, as Americans eschewed home ownership and renting retained its popularity, according to real estate research firm Reis Inc.
The national vacancy rate fell 0.30 percentage points in the first quarter to 4.9 percent, the lowest level since the fourth quarter 2001, [...]
While most Americans agree now is not the best time to sell a home, they feel stronger than ever that those struggling to pay their mortgage should sell their home and buy a cheaper one rather than receive help from the government.
The latest Rasmussen Reports national telephone survey of American Adults shows that just 19% believe the government should assist those struggling homeowners in making their mortgage payments. Sixty-nine percent [...]
From The Burning Platform:
The real world revolves around cash flow. Families across the land understand this basic concept. Cash flows in from wages, investments, and these days… from the government. Cash flows out for food, gasoline, utilities, cable, cell phones, real estate taxes, income taxes, payroll taxes, clothing, mortgage payments, car payments, insurance payments, medical bills, auto repairs, home repairs, appliances, electronic gadgets, education, alcohol (necessary in this economy), and [...]
The real world revolves around cash flow. Families across the land understand this basic concept. Cash flows in from wages, investments and these days from the government. Cash flows out for food, gasoline, utilities, cable, cell phones, real estate taxes, income taxes, payroll taxes, clothing, mortgage payments, car payments, insurance payments, medical bills, auto repairs, home repairs, appliances, electronic gadgets, education, alcohol (necessary in this economy) and a countless other everyday expenses. [...]
By Amy Hoak, MarketWatch
CHICAGO — With rent and other housing costs rising and incomes falling, a growing share of working households are spending more than half of their income on housing, according to a new report from the Center for Housing Policy.
In 2010, about 24% of U.S. households paid more than half of their income on housing costs, compared with about 22% in 2008, the report said.
Banks’ vast pile of foreclosed homes doesn’t appear to be diminishing. That’s a troubling sign for the future of the housing market.
Back in April, this column tallied up all the foreclosed homes sitting in banks’ inventory, as well as the “shadow” inventory of homes in the foreclosure process or on which owners had missed at least two mortgage payments. At the time, we reported that at the current rate of [...]
From Gonzalo Lira:
… The most despicable part is how much the banksters will have to pay to those families whose homes were improperly — illegally — fraudulently — foreclosed upon:
The princely sum of between $1,500 and $2,000.
Now, I’m not saying that someone who didn’t keep up with their mortgage payments and lost their home to foreclosure should get their house back for free, just because of faulty paperwork — I’m [...]
While today’s foreclosure settlement deal is by some accounts expected to help the housing market, as the foreclosure pipeline is once again unclogged, it is unclear what this will actually do for price discovery and clearing levels when one considers the already untenable shadow housing inventory, which can be summarized simply as follows - excess supply. It is this overhang that has to clear before there is any hope for incremental demand interest. [...]
The National Inflation Association today announced the release of its report about NIA’s projections of future U.S. food price increases due to the massive monetary inflation being created by the Federal Reserve’s $600 billion quantitative easing. This report was written by NIA’s President Gerard Adams, who believes food inflation will take over in 2011 as America’s greatest crisis. According to Mr. Adams, making mortgage payments will soon be the [...]