Mortgage defaults still a threat -- OrlandoSentinel.com

Florida's soaring home-foreclosure rate edged down a bit in July from June, but it was still 78 percent higher last month than it was a year ago.

[Realtor David]

Foreclosures are up, but just how many foreclosures have there been in the last few years of our boom market? If they are up 78% from last year, and there were 100 last year that means there are only 178 this year. That would be a drop in the bucket compared to the number of homes in our marketplace. I know the numbers are higher than this, and I know that Florida is in the top ten forclosure markets.

What is not reported by anyone is how the current foreclosure rates compare to foreclosure rates prior to the boom market of the last five years. The national average is one in 693 and Florida's is one in 593, but how does that stack up to pre-boom rates. By the way the headline reads "Mortgage Defaults Still a Threat". Still a threat to who? You mix national, state and local statistics, sensational headlines and quotes from people in Detroit which has little to do with our local real estate market.

The truth is that Orlando has one of the strongest job markets in America, and jobs equals houses. Interest raes are low, unemployment is low, home prices are slightly higher than the national average, but Orlando is a highly desirable place to live compared to average. The big story here is that professional investors have moved their money to the markets that did not experience the boom. Those markets will see a run up in prices, and many of them do not have economies and employment to support the higher prices.

[Banker Chris]

Couldn’t agree with Realtor Dan more. We need a true apples to apples comparison to determine the true level of foreclosures in Florida. Using examples of the Detroit economy does nothing to explain what is happening here. Our economy continues to gain strength. Housing prices have corrected themselves. The market was over priced. Any investor knows that. That is why investors sold their properties 2 years ago and put it into the stock market. I find it interesting they interviewed a “mortgage broker� and not a Bank Mortgage Lender. Mortgage Brokers, middle man between mortgage companies and buyers, were the main producers of ALT-A and Sub-prime loans. They financed buyers that weren’t qualified to purchase a home using traditional products with the pitch that housing prices would continue to rise and they could simple refinance their home after their 2 or 3 year ARM begins to adjust. Now those home owners are stuck and those Mortgage Brokers are dropping like flies. Mortgages are going back to where they belong, Banks, who have enough capital to funds their loans and the financial knowledge to explain to buyer whether it is the right time for them to purchase.

[yeah right]

I don't know what planet you live on BUT Orlando does NOT have the economy to support the cost of homes there or the market! The market is only going to continue to get worse in Orlando, more homes will go in to foreclosure and homes will continue to sit on the market as they are NOT worth what people have them financed for. Shame on all of you greedy investors, bankers and realtors for destroying the market and destroying the ability for teachers, police, fire and not to mention the hardworking middle class to ever be able to purchase a home!

[Tuma]

Banker Chris..."Housing prices have corrected themselves"..
Not yet!!!! Wait for another year.

[Gentle Jim]

Interesting how 'Banker Chris' from Toronto Canada understands how the U.S. conducts business. FYI the 120 plus lenders who have gone out of business this were just that: LENDERS who offered these loans. You haven't done your homework have you?

[Yep]

As a home shopper in Central Florida, I had the chance to look at over 300 homes in the $200-$250k range. I selected a home that was listed at $235k, agreed with the seller to purchase the home for $210 and have the seller pay all the closing costs associated with the home.

Why such a good deal?!?!?! Both myself and the seller KNEW the listing price was heavily inflated in the current market.

As a CPA, I understand Finance and most importantly, Fair Market Value. Realtors and Mortgage Brokers have a vested interst in making the sale price of a home as HIGH as possible...to collect the high commission.

Mortgage brokers need to take the brunt of the blow from the collapse of the sub-prime market. They went to battle with the underwriters and banks to get the funds to give to unqualified buyers...

We would all like to be millionaires, but the hard truth is, we all can't be... Even me.

[EARL BERGER]

WERE SCREWED DUE TO THE GREEDY FLIPPERS AND I'M INTHE CONSTRUCTION BUSINESS. I KNOW AND FEEL WE HAVE NOT EVEN COME CLOSE TO SEE THE NASTY RESULTS OF WHAT THE GREEDY PRESIDENTS AND BUSHES, AND THE EVIL REST. WE WERE FOOLS TO LET THEM DESTROY OUR LIVES. THEY SHOULD BE DELT WITH LIKE A CRIMINALS.9173

[Gentle Jim]

Yep:

Lenders offer the products based upon the risk/reward ratio. How can you blame realtors and mortgage pros for the collapse? If 4 folks don't agree on the price of a home, the deal doesn't get done: buyer, seller, appraiser, and the LENDER'S underwriter. These 4 market forces come together on a price. It's the current market for real estate that has caused a "lack of attachment" by home owners. I guess, according to your logic, it's greedy CPAs who find tax deductions for greedy tax payers who are responsible for higher taxes?

Amazing...

[Banker Chris]

Gentle Jim
United States
"Interesting how 'Banker Chris' from Toronto Canada understands how the U.S. conducts business. FYI the 120 plus lenders who have gone out of business this were just that: LENDERS who offered these loans. You haven't done your homework have you?"

First of all I'm a long time resident and mortgage originator in Orlando. Those 120 "lenders" were not lenders, do YOUR homework, they were selling their product directly back to Wallstreet. Once Wallstreet stopped buy their risky loans they were forced out of business. Lenders have the ability to us their own supply of money and therefore are still doing business to qualified buyers.

[Gentle Jim]

Banker Chris:

Ok everybody, bear with me while we give Banker Chris a Finance 101 lesson.

You can't sell securitized mortgages to Wall Street, unless you are a full blown lender. You can't name a bank that doesn't "sell off" some of its stuff to Wall Street. Back to school with you laddy. That bank got you drinking some strange KoolAid?