FB: Liberty League

[PBR...]

This article is really bull crap....I mean think about it...who really cares if average equity fell below 50%?  That means that on a $300k mortgage that the average person has $150k equity....which is really good.

I wonder how skewed the data is from the top 20% of the equity to debt homeowners i.e. those that bought a house for $75k and now it's worth $500k.  I would love to see what the equity is on houses bought in the last 3 years, my bet is ~10-14% (since most people put down 10%) EDIT: The more I think about it I bet it's between 3-5%

Here is a report that Reg wants to see.

How many investors went into this market thinking they were some RE guru and ended up taking a hit on a "sure thing" property.

some amazing numbers released reg this morning as people are now just walking away from houses even before their new rate resets, they couldnt afford it in the first place. cali and florida have problems w/ pools and people abandoning houses w/ mosquitos and counties now have teams going around in neighborhoods to abandoned houses and draining pools as they become breeding grounds.


     March 6 -- U.S. mortgage foreclosures rose to
an all-time high at the end of 2007 as borrowers with
adjustable-rate loans walked away from properties before their
payments increased, the Mortgage Bankers Association said today.
     New foreclosures jumped to 0.83 percent of all home loans
in the fourth quarter from 0.54 percent a year earlier. Late
payments rose to a 23-year high, the organization said in a
report today.
     ``We're seeing people give up even before they get to the
reset because they couldn't afford the home in the first
place,'' said Jay Brinkmann, vice president of research and
economics for the Washington-based trade group.

     About 40 percent of all foreclosures are homeowners with
prime or subprime loans who couldn't make their payments before
the reset, Brinkmann estimated in an interview. Another 23
percent are borrowers who received some form of loan
modification, typically a freezing or a reduction of their rate,
and then default, he said
     Forty-two percent of new foreclosures in the fourth quarter
were people with adjustable-rate subprime mortgages, given to
borrowers with limited or tainted credit records, according to
the report. Those types of loans accounted for about 7 percent
of all mortgages, the report said.
     ``It comes down to an overstretching of buyers to get into
homes they couldn't afford and an overextending of credit by
lenders who were more willing to take risk,'' Brinkmann said.
     Another 20 percent of new foreclosures were prime
adjustable-rate mortgages, which accounted for 15 percent of all
home loans, according to the report.
     Twenty percent of adjustable-rate subprime loans had late
payments in the fourth quarter, a number that excludes the one
of every eight mortgages already in foreclosure, the bankers
group said in their report.
     The share of late payments for adjustable prime loans was
5.51 percent, from 3.39 percent a year earlier, and the
foreclosure inventory rose to 2.59 percent, almost tripling from
a year earlier.

And for the investment banking and traders its brutal out there as this has moved past the subprime and now into Alt-A loans meaning people w/ a credit background higher than someone deemed a risk...this is getting ugly look at the spreads on agencies right now vs. the treasury...the whole loan market is still completely ill liquid...

     March 6 -- Yields on agency mortgage-backed
securities rose to their highest relative to U.S. Treasuries in
22 years as banks stepped up margin calls and concerns grew that
the Federal Reserve may be unable to curb the credit slump.
     The difference in yields, or spread, on the Bloomberg index
for Fannie Mae's current-coupon, 30-year fixed-rate mortgage
bonds and 10-year government notes widened about 7 basis points,
to 223 basis points, the highest since 1986 and 89 basis points
higher than Jan. 15. The spread helps determine the interest rate
homeowners pay on new prime mortgages of $417,000 or less.
     The markets have become ``utterly unhinged,'' William
O'Donnell, a UBS AG government bond strategist in Stamford,
Connecticut, wrote in a note to clients today. A lack of
liquidity has ``led to stunning air-pockets in price levels.''

     Investors are realizing that banks have little room to make
new investments amid rising losses and a flood of unwanted
assets, said Scott Simon, head of mortgage-backed bonds at
Pacific Investment Management Co. The world's top banks have
reported more than $181 billion in asset writedowns and losses,been stuck with $160 billion of leveraged buyout loans, and
bailed out $159 billion of structured investment vehicles.
     ``Everything is telling you the financial system is
broken,'' Simon, whose Newport Beach, California-based unit of
Allianz SE manages the world's largest bond fund, said in a
telephone interview today. ``Everybody's in de-levering mode.''
     Agency mortgage securities outstanding, which are guaranteed
by government-chartered Fannie Mae and Freddie Mac or federal
agency Ginnie Mae, total almost $4.5 trillion, about the same
size as the U.S. Treasury market     The widening spreads prompted speculation the government may
step in to support securities guaranteed by Fannie Mae and
Freddie Mac, said Tom di Galoma, head of U.S. Treasury trading in
New York at Jefferies & Co., a brokerage for institutional
investors. The Treasury Department said the rumor isn't true.
     ``The Fed can't really save the mortgage market,'' di Galoma
said. ``As they keep cutting, mortgage rates aren't going
lower.''
     The spread of current-coupon fixed-rated securities
guaranteed by Ginnie Mae against 10-year Treasuries has climbed
37 basis points this month to 187 basis points, also the highest
since the 1980s, according to Bloomberg data. Debt guaranteed by
Ginnie Mae is explicitly backed by the U.S. government, and based
on loans already insured or guaranteed by its agencies. A basis
point is 0.01 percentage point.     Carlyle Group's publicly traded mortgage bond fund, which
raised $300 million in July and used loans to buy about
$22 billion of agency mortgage securities, failed to meet margin
demands and has received a notice of default. In margin calls,
banks demand more collateral on their loans because of falling
prices. Lenders have been imposing ``additional collateral
requirements'' outside of margins call, Carlyle said today.
     ``If there's less money to finance positions and less
balance-sheet available to warehouse positions, the markets are
going to become more volatile,'' he said.
     Carlyle Capital Corp. missed four of seven margin calls
yesterday totaling more than $37 million, the Guernsey, U.K.-
based fund said today in a statement. Thornburg Mortgage Inc.,
the Santa, Fe, New Mexico-based owner of ``jumbo'' mortgages and
securities backed by adjustable-rate loans, said yesterday it
received a default notice from JPMorgan Chase & Co.     ``Traders are putting their phones down and backing slowly
away from their desks,'' O'Donnell said today in a telephone
interview. ``Relatively little'' agency mortgage-backed
securities are being traded, Pimco's Simon said.


BOTTOM LINE: ITS GOING TO BE UGLY FOR A WHILE!

[Knightstalker]

That double-wide is starting to look good.

[Knightstalker]

Lets all fly on Southwest.

[JT]

Checkout surfer dood.  Man does this live up to all the stereotypes:

http://www.youtube.com/watch?v=c5j4McFzies

['gro]

Southwest Airlines: Find your own seat, and kiss your own azz goodbye!

some will claim that they've never had a crash, but skipping mandatory inspections shows a lack of integrity by SWA.

[Knightstalker]

Checkout surfer dood.  Man does this live up to all the stereotypes:

http://www.youtube.com/watch?v=c5j4McFzies

Somebody should tell him to speak english.

[Knightstalker]

Better use your gift cards as soon as you get them.

[Jonny Utah]

Maybe the people of KS parents generation had the right idea.  Buy a nice home in a decent community and stay there instead of selling every few years because you need to "move up".  You have kids, need more room, add an addition.  The value will flucuate but the house will be worth more than you paid for it in the long run.  Here is the other smart real estate tip given to KS by his Aunt who at one point was a top saleswoman for Weichert.  Buy a house you can afford to make payments on, stay away from Mortgage brokers and varialble rate mortgages unless their is a reasonable cap on the high rate.

In Boston though you can still "move up" pretty easily if you want to but dont need to.  Housing prices are still high in decent hoods...

[Knightstalker]

Maybe the people of KS parents generation had the right idea.  Buy a nice home in a decent community and stay there instead of selling every few years because you need to "move up".  You have kids, need more room, add an addition.  The value will flucuate but the house will be worth more than you paid for it in the long run.  Here is the other smart real estate tip given to KS by his Aunt who at one point was a top saleswoman for Weichert.  Buy a house you can afford to make payments on, stay away from Mortgage brokers and varialble rate mortgages unless their is a reasonable cap on the high rate.

In Boston though you can still "move up" pretty easily if you want to but dont need to.  Housing prices are still high in decent hoods...

And if you can afford to, the trouble is all these scheiskauffs who can't afford to, but "have to" because everyone is doing it.  Dumbest reason for doing anything, trying to keep up.

KS knows some WWII vets in the VFW who bought new houses in towns like Secaucus, Lyndhurst and Rutherford NJ on their GI Bills.  They paid maybe 5 to 7K for cape cods that are now worth 300K+ in many cases.  Even if they sell low that was a good investment.

[Regulator]

Maybe the people of KS parents generation had the right idea.  Buy a nice home in a decent community and stay there instead of selling every few years because you need to "move up".  You have kids, need more room, add an addition.  The value will flucuate but the house will be worth more than you paid for it in the long run.  Here is the other smart real estate tip given to KS by his Aunt who at one point was a top saleswoman for Weichert.  Buy a house you can afford to make payments on, stay away from Mortgage brokers and varialble rate mortgages unless their is a reasonable cap on the high rate.

In Boston though you can still "move up" pretty easily if you want to but dont need to.  Housing prices are still high in decent hoods...

And if you can afford to, the trouble is all these scheiskauffs who can't afford to, but "have to" because everyone is doing it.  Dumbest reason for doing anything, trying to keep up.

KS knows some WWII vets in the VFW who bought new houses in towns like Secaucus, Lyndhurst and Rutherford NJ on their GI Bills.  They paid maybe 5 to 7K for cape cods that are now worth 300K+ in many cases.  Even if they sell low that was a good investment.

KS- How else are you going to roll with the LLPP if you're not trying to keep up?  How else are you going to come up with names like "Thug Mansion" "PD&IC Mansion" "Regs' House" etc if it weren't for us weekend millionaire's*?

As far as people buying terds back in the industrial revolution days and now they're worth $300k, those are just paper gains...unless they want to sell their house and live in a cardboard box. (sleeping on the crumpled up $100 bills they made)

* a weekend millionaire is someone that works a part time hourly job (insert pic of u89 pumping gas here) and then is out at the clubs on Saturday night sporting the best designer label threads (usually chinese knock-offs) acting like Enrique Englacias, even though when he hits the ATM he's like "ohhh do I really have enough for this captain and coke??!!.

[Knightstalker]

Maybe the people of KS parents generation had the right idea.  Buy a nice home in a decent community and stay there instead of selling every few years because you need to "move up".  You have kids, need more room, add an addition.  The value will flucuate but the house will be worth more than you paid for it in the long run.  Here is the other smart real estate tip given to KS by his Aunt who at one point was a top saleswoman for Weichert.  Buy a house you can afford to make payments on, stay away from Mortgage brokers and varialble rate mortgages unless their is a reasonable cap on the high rate.

In Boston though you can still "move up" pretty easily if you want to but dont need to.  Housing prices are still high in decent hoods...

And if you can afford to, the trouble is all these scheiskauffs who can't afford to, but "have to" because everyone is doing it.  Dumbest reason for doing anything, trying to keep up.

KS knows some WWII vets in the VFW who bought new houses in towns like Secaucus, Lyndhurst and Rutherford NJ on their GI Bills.  They paid maybe 5 to 7K for cape cods that are now worth 300K+ in many cases.  Even if they sell low that was a good investment.

KS- How else are you going to roll with the LLPP if you're not trying to keep up?  How else are you going to come up with names like "Thug Mansion" "PD&IC Mansion" "Regs' House" etc if it weren't for us weekend millionaire's?

As far as people buying terds back in the industrial revolution days and now they're worth $300k, those are just paper gains...unless they want to sell their house and live in a cardboard box. (sleeping on the crumpled up $100 bills they made)

Not paper gains, they sell the houses to the Indians moving into the area, many times for cash and move to the shore, or they leave the homes to their families in their wills.  One vet I know sold his cape for over 500K because a developer wanted the big corner lot.  He then retired to NC and bought a nice condo and has money in the bank.

[union89]

Maybe the people of KS parents generation had the right idea.  Buy a nice home in a decent community and stay there instead of selling every few years because you need to "move up".  You have kids, need more room, add an addition.  The value will flucuate but the house will be worth more than you paid for it in the long run.  Here is the other smart real estate tip given to KS by his Aunt who at one point was a top saleswoman for Weichert.  Buy a house you can afford to make payments on, stay away from Mortgage brokers and varialble rate mortgages unless their is a reasonable cap on the high rate.

In Boston though you can still "move up" pretty easily if you want to but dont need to.  Housing prices are still high in decent hoods...

And if you can afford to, the trouble is all these scheiskauffs who can't afford to, but "have to" because everyone is doing it.  Dumbest reason for doing anything, trying to keep up.

KS knows some WWII vets in the VFW who bought new houses in towns like Secaucus, Lyndhurst and Rutherford NJ on their GI Bills.  They paid maybe 5 to 7K for cape cods that are now worth 300K+ in many cases.  Even if they sell low that was a good investment.

KS- How else are you going to roll with the LLPP if you're not trying to keep up?  How else are you going to come up with names like "Thug Mansion" "PD&IC Mansion" "Regs' House" etc if it weren't for us weekend millionaire's*?

As far as people buying terds back in the industrial revolution days and now they're worth $300k, those are just paper gains...unless they want to sell their house and live in a cardboard box. (sleeping on the crumpled up $100 bills they made)

* a weekend millionaire is someone that works a part time hourly job (insert pic of u89 pumping gas here) and then is out at the clubs on Saturday night sporting the best designer label threads (usually chinese knock-offs) acting like Enrique Englacias, even though when he hits the ATM he's like "ohhh do I really have enough for this captain and coke??!!.

U89 has to figure out a way to continue to pull in the Benjamin's so he can feed Reg & Gro ML's in Troy this year......

"Hey U89....can Gro and I get a couple of your ML's??  Our ML's seem to be locked in Gro's Mini Cooper over there."

[superman57]

Ok, so Supes, is gonna go on a little bit of a rant right now...
http://sports.espn.go.com/mlb/news/story?id=3278505

For once I must agree with a Mets fan...this is redicoulus, we have all of these murderers and rapists and drug dealers and so on and all and the FBI is spending their time investigating a liar Roger Clemens who lied to a bunch of old farts...give him a break let him retire to his ranch in texas and we can bring his name back up in 5 years...Enough is Enough

[PBR...]

Maybe the people of KS parents generation had the right idea.  Buy a nice home in a decent community and stay there instead of selling every few years because you need to "move up".  You have kids, need more room, add an addition.  The value will flucuate but the house will be worth more than you paid for it in the long run.  Here is the other smart real estate tip given to KS by his Aunt who at one point was a top saleswoman for Weichert.  Buy a house you can afford to make payments on, stay away from Mortgage brokers and varialble rate mortgages unless their is a reasonable cap on the high rate.

In Boston though you can still "move up" pretty easily if you want to but dont need to.  Housing prices are still high in decent hoods...

And if you can afford to, the trouble is all these scheiskauffs who can't afford to, but "have to" because everyone is doing it.  Dumbest reason for doing anything, trying to keep up.

KS knows some WWII vets in the VFW who bought new houses in towns like Secaucus, Lyndhurst and Rutherford NJ on their GI Bills.  They paid maybe 5 to 7K for cape cods that are now worth 300K+ in many cases.  Even if they sell low that was a good investment.

KS- How else are you going to roll with the LLPP if you're not trying to keep up?  How else are you going to come up with names like "Thug Mansion" "PD&IC Mansion" "Regs' House" etc if it weren't for us weekend millionaire's*?

As far as people buying terds back in the industrial revolution days and now they're worth $300k, those are just paper gains...unless they want to sell their house and live in a cardboard box. (sleeping on the crumpled up $100 bills they made)

* a weekend millionaire is someone that works a part time hourly job (insert pic of u89 pumping gas here) and then is out at the clubs on Saturday night sporting the best designer label threads (usually chinese knock-offs) acting like Enrique Englacias, even though when he hits the ATM he's like "ohhh do I really have enough for this captain and coke??!!.

U89 has to figure out a way to continue to pull in the Benjamin's so he can feed Reg & Gro ML's in Troy this year......

"Hey U89....can Gro and I get a couple of your ML's??  Our ML's seem to be locked in Gro's Mini Cooper over there."

LMAO! well played u89...the vision of gro's 6'4" 235lb. body of twisted steel and sex appeal cramming into a mini is hell-arious!

[lewdogg11]

Maybe the people of KS parents generation had the right idea.  Buy a nice home in a decent community and stay there instead of selling every few years because you need to "move up".  You have kids, need more room, add an addition.  The value will flucuate but the house will be worth more than you paid for it in the long run.  Here is the other smart real estate tip given to KS by his Aunt who at one point was a top saleswoman for Weichert.  Buy a house you can afford to make payments on, stay away from Mortgage brokers and varialble rate mortgages unless their is a reasonable cap on the high rate.

In Boston though you can still "move up" pretty easily if you want to but dont need to.  Housing prices are still high in decent hoods...

And if you can afford to, the trouble is all these scheiskauffs who can't afford to, but "have to" because everyone is doing it.  Dumbest reason for doing anything, trying to keep up.

KS knows some WWII vets in the VFW who bought new houses in towns like Secaucus, Lyndhurst and Rutherford NJ on their GI Bills.  They paid maybe 5 to 7K for cape cods that are now worth 300K+ in many cases.  Even if they sell low that was a good investment.

KS- How else are you going to roll with the LLPP if you're not trying to keep up?  How else are you going to come up with names like "Thug Mansion" "PD&IC Mansion" "Regs' House" etc if it weren't for us weekend millionaire's*?

As far as people buying terds back in the industrial revolution days and now they're worth $300k, those are just paper gains...unless they want to sell their house and live in a cardboard box. (sleeping on the crumpled up $100 bills they made)

* a weekend millionaire is someone that works a part time hourly job (insert pic of u89 pumping gas here) and then is out at the clubs on Saturday night sporting the best designer label threads (usually chinese knock-offs) acting like Enrique Englacias, even though when he hits the ATM he's like "ohhh do I really have enough for this captain and coke??!!.

U89 has to figure out a way to continue to pull in the Benjamin's so he can feed Reg & Gro ML's in Troy this year......

"Hey U89....can Gro and I get a couple of your ML's??  Our ML's seem to be locked in Gro's Mini Cooper over there."

LMAO! well played u89...the vision of gro's 6'4" 235lb. body of twisted steel and sex appeal cramming into a mini is hell-arious!

It sure is since he's actually 5'11" 250lbs