Personal BK's Up 28% Over Last Year

From the American Bankruptcy Institute: October Consumer Bankruptcy Filings Reach New Highs, Up 28 Percent Over Last Year

The 135,913 consumer bankruptcy filings in October represented a 27.9 percent increase over last October's monthly total of 106,266, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The October 2009 consumer filings represented an 8.9 percent increase from the September 2009 total of 124,790. Chapter 13 filings constituted 28.5 percent of all consumer cases in October, a slight increase from the September rate.

"The nearly 9 percent increase in consumer bankruptcy filings in October, together with a 7 percent jump reported in business cases, demonstrates the sustained stress on the U.S. economy,"said ABI Executive Director Samuel J. Gerdano. ABI forecasts that total bankruptcies this year will exceed 1.4 million, the highest number since 2005.

2005 had a huge spike because a federal BK reform law was put into place requiring a means tests and classes be taken. They wanted to weed out the BK filer who was abusing the system.

I also read this troubling piece put together by CNN highlighting people that are forced to save money because of job losses and illness; resorting to fishing for dinner and hunting deer. This is on their personal financial site CNN-FN/Money. Things are very very bad. Extreme Saver Article Here.

Loan mortgage calculator – Why do you need it?

This is a Sponsored Post

A loan mortgage calculator is an effective tool that can give you the true picture of your financial condition. It helps you to decide the size of the mortgage that you should take out. Using a loan mortgage calculator is essential because if you know how much you can afford, you can also plan out your finances beforehand. It is important to arrange for your finances before you settle for a house. In this regard, you can take assistance of a mortgage broker that can assist you in shopping around for your dream house.

Let us see how a loan mortgage calculator can help you and why you need it in the first place. There are different types of loan mortgage calculators that can help you when you take out a mortgage. The loan mortgage calculators that are used extensively include the following –

• Rent or Buy
You may be wondering whether renting is a better option than buying. If you want to figure out how your finances will turn out to be if you rent or buy, take help of a loan mortgage calculator. You will be able to find out which is a better option.

• How much do you pay if you opt for 15-year or 30-year loan term?
In case you are opting for 15-year loan term, you will have to pay more each month but the rate of interest will be low. On the other hand, if you opt for 30-year loan term, you will have to pay less but the rate of interest will be high. With the help of a loan mortgage calculator, you can find out the amount you have to pay each month.

• ARM versus FRM
A loan mortgage calculator will help you to find out how much you have to pay if you opt for adjustable-rate mortgage and fixed-rate mortgage. In case of FRM, the amount you have to pay throughout the term of the loan is predictable and fixed. But if you opt for ARM, the rates fluctuate as per rates of the market. And your monthly mortgage payments change.

Interest Rate Table by MortgageFit

• APR loan mortgage calculator
APR or the Annual Percentage Rate is the total cost of the loan. Although APR doesn’t affect your monthly mortgage payments, with the help of APR loan mortgage calculator, you can calculate the total loan cost.

Since your finances occupy center stage, it is important to work out your finances well in advance. This is because you have to continue making payments consistently for the entire loan term. And falling behind on payments means you may have to face foreclosure.

Oh the Parabolic Troubles.

This chart is very troubling. Things are only accelerating. 4.5% of mortgages in the 4 trillion portfolio are over 90 days late. From Calculated Risk.

Housing, More Pain to Come:Shocker!

I meant to get to this last week, but the day it came out, I was mostly enjoying the sites and vino of Italy. Largely without 3G access(everything is slower in Italy), and I somehow missed it:

“Despite some tentative signs of recovery, the U.S. housing market remains vulnerable to further price drops—especially in areas where large numbers of mortgages are headed toward foreclosure over the next few years.

The Wall Street Journal’s quarterly survey of housing-market data in 28 major metro areas shows sharp drops in the number of homes listed for sale across the country. But the potential supply of homes is far larger because banks are likely to acquire significant numbers of foreclosed homes in some areas, notably Las Vegas, Atlanta, Detroit, Phoenix, Miami and other parts of Florida, and Sacramento, Calif., over the next few years.

Sales of those homes may depress prices further. By contrast, metro areas with relatively low foreclosure and mortgage-delinquency rates include Boston, Denver, Minneapolis, San Francisco, Seattle, Raleigh, N.C., and Portland, Ore., making them less vulnerable.

Homeowners and potential buyers have been whipsawed by conflicting signals about the state of the market in recent months. Ulani and Mike Thiessen found the market surprisingly hot when they went shopping for their first home in Las Vegas during the summer. With the help of Kim Kelly-Reed, an agent from One Source Realty & Management, the Thiessens finally bought a foreclosed house in September for about $136,000—but only after being outbid on three other houses.”

chart courtesy of WSJ

Making a Mess a Bit Better Looking?

This is a Wordle of the Blog. I am an optimist and generally a happy person. As I close out a tough week I am looking forward to the day a few years from now when the new Wordle has recovery and stability as the primary keywords. Have an excellent weekend.

Horrible Bank. Smart Dog.

Record Number Late on Mortgage Payments

As the media announces that the recession is over it's hard to ignore the record number of American's stumbling to make their mortgage payment.

The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.24 percent of all loans outstanding as of the end of the second quarter of 2009, up 12 basis points from the first quarter of 2009, and up 283 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
...
The delinquency rate breaks the record set last quarter. The records are based on MBA data dating back to 1972.

The delinquency rate includes loans that are at least one payment past due but does not include loans somewhere in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the second quarter was 4.30 percent, an increase of 45 basis points from the first quarter of 2009 and 155 basis points from one year ago. The combined percentage of loans in foreclosure and at least one payment past due was 13.16 percent on a non-seasonally adjusted basis, the highest ever recorded in the MBA delinquency survey.
...
“While the rate of new foreclosures started was essentially unchanged from last quarter’s record high, there was a major drop in foreclosures on subprime ARM loans. The drop, however, was offset by increases in the foreclosure rates on the other types of loans, with prime fixed-rate loans having the biggest increase. As a sign that mortgage performance is once again being driven by unemployment, prime fixed-rate loans now account for one in three foreclosure starts. A year ago they accounted for one in five....” said Jay Brinkmann, MBA’s Chief Economist.
emphasis added

Full Article Link from the Mortgage Bankers Association

Price Solves Inventory Problem:Dalton Sells Out

Maybe it was the tax break or maybe it was just the heady rush of shouting a number higher than the guy next to you, but that auction really worked out for the Dalton this past weekend. All 34 condos on the block sold (one of the units at the site was already in escrow). Debi Roks, a project manager for auction company Kennedy-Wilson, tells us the event was standing room only. She couldn't share specific prices, but everything went for under the latest asking prices (unshockingly), which were between $349,000 for a 684 square feet loft with one bath and $779,000 for a 1,721 square feet two bedroom, two and a half bathroom condo with a rooftop deck. Starting bids ranged from $165,000 to $395,000. For the inside scoop on Pasadena Real Estate and Pasadena Foreclosures visit our friends at www.rivasestates.com

Foreclosure Wave Continues to Grow

From Matt Padilla at the O.C. Register: Foreclosure wave gathers momentum

“To say there is a second wave implies the (current) wave has receded,” [Sam Khater, senior economist, First American CoreLogic] “I don’t see that the wave has receded.”

Click on graph for larger image in new window.

This graph is from Matt based on data from American CoreLogic.

Khater said ... federal and state efforts have mostly delayed foreclosures, preventing few. ... So to tune out the noise, just look at the 90-day rate. In Khater’s view it shows “one giant wave.”

90 day delinquency rate: "everything 3 months late or more. Likely includes most all Foreclosures in Process. The categories are not separate."

Foreclosure Rate is actual foreclosures in process: "Everything with NOD and Trustee's Sale filing."

REO Rate: "Everything foreclosed but still held by bank or servicer. This category is separate from other two."

Mr.Mortgage Summary:Expect to see more home inventory come on the market in the next two years. It takes 12-14 months after a payment is missed to actually get listed by a realtor for sale as an REO. With the unemployment rate at 10% give or take that is a lot of new folks entering the foreclosure line. This will pressuree prices in market that were the former bubble states.

reposted from Calculated Risk.

Finding a Loan For Investment Property

Finding the Best Mortgage for an Investment Property

If you are considering buying properties either to hold as investments or to sell then you need to look at mortgages and mortgage rates differently. In order to make the most amount of profit you need to borrow as little as possible. Remember: the most important aspect in the process is retaining the capability to turn the property around to the buyers without causing you payments in the. Thankfully, there are several ways you can mortgage these investment properties to your benefit.

What Can You Afford?

Take a moment to review your current financial status. If you can afford to make the down payment on a property, you may want to go ahead and do so. You will be able to use the equity to both build your profits and the number of subsequent investment properties.

Finding The Best Mortgage

Since you want to spend as little money as possible when buying properties to sell, you will want to acquire a mortgage that requires minimal financial output during the time period in which you are trying to sell the property. This means looking for loans with low initial interest rates or loans that pay off the interest first too. For example, if qualified, you may want to go with a no deposit loan through which you would be lent 100% of the property value provided that you can demonstrate a solid savings history. The initial mortgage payments will be smaller than they would be in a traditional mortgage agreement and you will be able to purchase the property a lot sooner.

Also, a hybrid loan- one in which the interest is fixed for a period of time and then becomes adjustable- is another good option for investment property holders, and works well for those either concerned about the future movement of interest rates or investors that don’t want to take a particular stance.

How to Get the Best Loan for Your Needs

When you find a property that you want to invest in, it is important to discuss financing options with a variety of banks and lending institutions. Be sure to explain your plan for the property as well as what you are prepared to contribute monetarily. Keep in mind that it is best to work with a lender that has a background in working with investment property holders as they will often be better suited to serve your needs.

Recession Not Over:Treasury Sec Can't Even Sell His Home

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
Home Crisis Investigation
http://www.thedailyshow.com/
Daily Show Full Episodes Political Humor Joke of the Day

Conforming and Jumbo Rates Move Higher

Last week was a roller coaster ride for mortgage rate watchers. After a nice rally in the mortgage-backed securities market on Tuesday, the par 30 year fixed mortgage rate moved below 5.00% on Wednesday, however by Friday Treasuries and MBS prices had fallen back to Monday 's levels and mortgage rates consequently moved higher. This has been a consistent pattern lately, each time mortgage rates break the 5.00% barrier, they fail to remain below 5.00%. This implies, if you are considering a refinance and have yet to submit a loan application...you should do so to ensure that you are able to take advantage of the periods of mortgage rates below 5.00% (assuming you qualify).

Reports throughout the industry are indicating that the par 30 year conventional rate mortgage is in the 5.25% to 5.375% range for the best qualified consumers and 30Y fixed jumbo loans are at 6.25%. In order to meet the criteria of best qualified you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including 1 point loan. Looking at the national average in this volatile rate enviroment is like looking at last weeks temperature. To get a quote or a custom proposal contact us anytime.