April 29, 2010
NATIONWIDE
Is it a Great Housing Recession or Great Housing Bust?
Economists worldwide are of the unanimous opinion that the current financial crisis and global downturn economy has been triggered by the housing bubble in the US. It is also common knowledge that the housing market in US, as seen by financial experts and market watchers, is yet to recover from its sickness – arising out of the foreclosure virus caught in early 2006. The debate among experts has started whether the present economic crisis in the US country is a “Great Housing Recession” or a “Great Housing Bust” not eventually leading to Recession. Read More..
HAMP Fails To Achieve Objective – COP Report
In its latest Report running 189 pages dated 10th February – titled “Commercial Real Estate Losses and the Risk to Financial Stability” – The Congressional Oversight Panel, a “watchdog” committee overseeing the implementation and progress of Obama Government’s foreclosure crisis mitigation programs, has regretted the ineffectiveness of the same.
This report which has sent shockwaves in the real estate and financial circles, begins at the outset thus –
“The Congressional Oversight Panel is deeply concerned that commercial loan losses could jeopardize the stability of many banks, particularly the nation‘s mid-size and smaller banks, and that as the damage spreads beyond individual banks that it will contribute to prolonged weakness throughout the economy.” Read More..
Market Watch – All Foreclosure Types Are Up in March
All over the country, as many as 932,234 properties received foreclosure filings during the first quarter. Comparatively, this is an increase of about 7 percent from the quarter ended December 2009 and 16 percent increase from the first quarter of 2009. As for foreclosure filings, one in 138 housing units in US received the bad news and is fighting foreclosure. Read More..
LENDERS & SERVICERS
Regulating While Avoiding a Double Bottomed Recession
Recessions are rarely predictable in shape, but there is no mandate that it be V-shaped. Therefore, the current economic climate plentiful with distressed property, commercial short sales and foreclosures, needs to be carefully nurtured to sponsor confidence in the broader economy. It is this reality that would prevent the immediate enactment of statutory regulation curtailing the activities of financial institutions and restricting the banking system in unprecedented State intervention. Read More..
COMMERCIAL
Commercial Mortgage Based Securities Default estimated to exceed 11% by 2011
Last year the increase in new CMBS defaults was more than five times and stood at a total of 1,464 loans valued at $17.75 billion. This is likely to increase over the end of this year by 4.4% and is expected to cross 11% overall in the year 2011. Read More..
Las Vegas – Commercial Short Sales
Las Vegas herself had numerous commercial developments grind to a standstill when the US sub-prime mortgage fiasco made itself known. As developers followed each other into financial paralysis, property prices were slashed to over 50% of their pre-2008 prices. Many of these commercial properties are offered as short sales together with approval which runs with the land, and also infrastructure to varying degrees. These are all assets in the hands of the new investor who merely needs to fund the proposition until economic activity regathers steam. With these types of opportunity blatantly offered on the market as economic activity rises in the foreground, many lenders are simply under a deluge of property volume to realize that the ice has thawed. Read More..
MARKET UPDATE – SAN FRANCISCO BAY AREA
Lower foreclosure activity reported in Bay Area during the first quarter 2010
During the quarter ended March, 81,504 notices of default got served in California State – less by 3,514 compared to quarter ended December 2009. Default Notices issued for delinquents in Bay Area numbered at 13,517 – a decrease of 30.5 percent when compared to first quarter of 2009 – when California State had a record level of default notices. Read More
Foreclosure tragedy does not spare even Elder-care Homes of Bay Area
News stories go to show that in Walnut Creek area of California, elder-care facilities are visited by staff of the local County Court with Sheriff’s order for foreclosure sale of the property. The residents inside – in the age group of 86 to 97 when many may not have their physical abilities grossly impaired – had to be evicted following the Court Order. Read More
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