Foreclosures keep mounting in South Florida

In Broward, 4,403 people were either facing foreclosure or lost their homes in January, up from 3,426 last January, the Irvine, Calif.-based company said. Full Story
Patient Buyer

New York, NY

#182 Feb 12, 2009
It Is Our Own Fault wrote:
Price to income ratios in Florida have always been out of whack.
Salaries in Florida have always been lower than the rest of the country. It's called the Sun Penalty.
<quoted text>
I should have said you should look at home price to income ratios for South Florida 5-10 years ago vs. today, not comparing the ratio to other areas. All I'm suggesting is that home prices in South Florida are very likely to fall back to where they have historically been relative to incomes in South Florida.

Over the past 5 years home prices went up much faster than incomes, and now they are coming back down even faster. It's just a bubble and prices will settle out where they were before the no money down, no income, no questions asked loans were given to anyone who could fog a mirror in a mortgage brokers office.
Franklin Ratliff

AOL

#183 Feb 12, 2009
Japan's "Lost Decade"

"The Japanese asset price bubble ("bubble economy") was an economic bubble in Japan from 1986 to 1990, in which real estate and stock prices greatly inflated. The bubble's collapse lasted for more than a decade with stock prices bottoming in 2003, until hitting an even lower low in 2008 amidst a global recession.
In the decades following World War II, Japan implemented stringent tariffs and policies to encourage people to save their income. With more money in banks, loans and credit became easier to obtain, and with Japan running large trade surpluses, the yen appreciated against foreign currencies. This allowed local companies to invest in capital resources much more easily than their competitors overseas, which reduced the price of Japanese-made goods and widened the trade surplus further. And, with the yen appreciating, financial assets became very lucrative.
With so much money readily available for investment, speculation was inevitable, particularly in the Tokyo Stock Exchange and the real estate market. The Nikkei stock index hit its all-time high on December 29, 1989 when it reached an intra-day high of 38,957.44 before closing at 38,915.87. Additionally, banks granted increasingly risky loans.
Prices were highest in Tokyo's Ginza district in 1989, with choice properties fetching over 100 million yen ($1 million US dollars) per square meter ($93,000 per square foot). Prices were only marginally less in other large business districts of Tokyo. By 2004, prime "A" property in Tokyo's financial districts had slumped to less than 1 percent of its peak, and Tokyo's residential homes were less than a tenth of their peak, but still managed to be listed as the most expensive in the world until being surpassed in the late 2000s by Moscow and other upstarts. Tens of trillions of dollars worth were wiped out with the combined collapse of the Tokyo stock and real estate markets. Only in 2007 had property prices begun to rise, however it began to fall in late 2008 due to the financial crisis.
With the economy driven by its high rates of reinvestment, this crash hit particularly hard. Investments were increasingly directed out of the country, and manufacturing firms lost some degree of their technological edge. As Japanese products became less competitive overseas, the low consumption rate began to bear on the economy, causing a deflationary spiral. The Japanese Central Bank set interest rates at approximately absolute zero."
bulldurm

Homestead, FL

#184 Feb 12, 2009
Franklin Ratliff wrote:
Japan's "Lost Decade"
"The Japanese asset price bubble ("bubble economy") was an economic bubble in Japan from 1986 to 1990, in which real estate and stock prices greatly inflated. The bubble's collapse lasted for more than a decade with stock prices bottoming in 2003, until hitting an even lower low in 2008 amidst a global recession.
In the decades following World War II, Japan implemented stringent tariffs and policies to encourage people to save their income. With more money in banks, loans and credit became easier to obtain, and with Japan running large trade surpluses, the yen appreciated against foreign currencies. This allowed local companies to invest in capital resources much more easily than their competitors overseas, which reduced the price of Japanese-made goods and widened the trade surplus further. And, with the yen appreciating, financial assets became very lucrative.
With so much money readily available for investment, speculation was inevitable, particularly in the Tokyo Stock Exchange and the real estate market. The Nikkei stock index hit its all-time high on December 29, 1989 when it reached an intra-day high of 38,957.44 before closing at 38,915.87. Additionally, banks granted increasingly risky loans.
Prices were highest in Tokyo's Ginza district in 1989, with choice properties fetching over 100 million yen ($1 million US dollars) per square meter ($93,000 per square foot). Prices were only marginally less in other large business districts of Tokyo. By 2004, prime "A" property in Tokyo's financial districts had slumped to less than 1 percent of its peak, and Tokyo's residential homes were less than a tenth of their peak, but still managed to be listed as the most expensive in the world until being surpassed in the late 2000s by Moscow and other upstarts. Tens of trillions of dollars worth were wiped out with the combined collapse of the Tokyo stock and real estate markets. Only in 2007 had property prices begun to rise, however it began to fall in late 2008 due to the financial crisis.
With the economy driven by its high rates of reinvestment, this crash hit particularly hard. Investments were increasingly directed out of the country, and manufacturing firms lost some degree of their technological edge. As Japanese products became less competitive overseas, the low consumption rate began to bear on the economy, causing a deflationary spiral. The Japanese Central Bank set interest rates at approximately absolute zero."
good story. thanks franklin.
This is great

United States

#185 Feb 12, 2009
Sure wrote:
<quoted text>
I rent and am VERY proud of it. I tell everyone.
Back in 2005, I owned a primary residence and three rental homes. Thankfully, I saw all this coming (it wasn't hard) and cashed out late in 2005. Since then, the homes I sold are now worth around 50% of selling prices. The money I cashed out has been sitting safely in a money market ever since.
Assume you were not smart enough to sell during the peak, you have watched your equity erode by half. You could have been earning interest on all that equity. Instead, you've been slaughtered.
You can continue to mock those of us who made prudent financial decisions during the housing bubble. However, you're not fooling anyone. We are well aware of the pain you're feeling as you watched your investments erode away. We're well aware that you're don't really "love it." Likewise, you're well aware that renting was the smart thing to do during these past four years.
Like I said I now have them rented. The renters are paying my mortgage for me. I am only 40 so in ten years I will cash out. Mabey I will sell it to you.

Since: Apr 07

West Palm Beach, FL

#186 Feb 12, 2009
The bad loans are coming home to roost! Some of these people had no job, no income and a zero down payment. Others are in foreclosure due to lack of savings for a rainy day.
The best advice I ever had was to have one year's salary put away for unexpected events.
These days,people spend like there's no tomorrow. Don't deny themselves anything and when that rainy day comes they are looking for a bailout.
Interesting that the video's from Obama's town hall meeting in Ft Myers showed us how the entitlement programs have produced a class of people that think the Government will supply all their needs!
Ron

Fort Lauderdale, FL

#187 Feb 12, 2009
I love this stuff! In the past two years I have bought five houses, fixed them up and now two are rental properities, I sold one, and I live in another! Keep them hard times acoming! All those idiots who could live within their means and spent money they didn't have are a Godsend to me!
Deerfield Beach

Miami, FL

#188 Feb 12, 2009
retarded sentinel poster wrote:
any credit counseling company is likely a mob run racket. if you have half a brain you can do it yourself, or be smart enough to find a halfway professional to help you. these scum are bottom feeders, the WORST of the worst, vulture type scum.
Unfortunately, the bank demandss that i see a credit counser before they will discuss modification.And you are correct it is a racket.
ron run

United States

#189 Feb 12, 2009
I love this stuff! In the past two years I have bought five houses, fixed them up and now two are rental properities, I sold one, and I live in another! Keep them hard times acoming! All those idiots who could live within their means and spent money they didn't have are a Godsend to me!

LOL

You are getting $ 900 rent and u have the mortgage of 1200 ??

LOOOOL
Eyes Wide Open

Fort Lauderdale, FL

#190 Feb 13, 2009
I'm angry and tired of watching thousands line up to try and get an eight dollar an hour job while CEOs get million dollar bonuses paid with taxpayer money.

I'm angry and tired of seeing people lose their retirement savings because some banks wanted to make a quick buck and as a result collapsed the economy and the stock market.

I'm angry and tired of watching oil companies make 40 billion dollars profit in one quarter from gouging the public for gasoline which should have been obsolete half a century ago.

I'm angry and tired of people going without medicine because the pharmaceutical companies charge them 50 dollars for a pill that cost them ten cents to make.

I'm angry and tired of the government telling me what I can and cannot put in my body if I don't want to go to jail.

I'm angry and tired of corporations telling me what I can and cannot put in my body if I want to get a job.

I'm angry and tired of seeing people use religion as an excuse to kill people.

Anybody else angry?
Pompano Fred

United States

#191 Feb 13, 2009
Wow. You seem to have it all figured out. And I think you probably aren't in foreclosure.

I am. I lost my job due to downsizing. The modest home that my wife and I own....we can't afford the payment because there isn't any money.

You may have this all figured out but your advice and comments are cold comfort and not welcome in this house.

I know this space is to be used for civil discourse, but I frankly don't feel very civil. You, sir, are an moron. Please don't take offense.
Reality wrote:
You have to let the market correct itself. You cannot save people from foreclosure. There are way too many people living in neighborhoods they have no business living in. They couldn't afford it. That is wrong. People who bust their butts to have a certain lifestyle should not have to help other people attain the same. Earn what you want, you cannot just have it given to you. We should be able to live around other people that are like us. This type of community provides a sense of community and that is what South Florida severely lacks.

Since: Jun 08

Boca Raton, FL

#192 Feb 13, 2009
john wrote:
<quoted text> Obama's FEAR tactics are not called for, we haven't even reached JIMMY CARTER unemployment rates yet, in fact 1982 unemployment rates haven't even been reached. This stimulus isn't needed because it's full of projects that DON'T create jobs, but Obama already has a plan to say he SAVED jobs as his excuse. Just how he defines SAVED jobs is going to be interesting but the snake oil salesman will preach he saved the world with it.
Check your sources, we HAVE reached unemployment rates from '82 in some parts of the country.

Since: Jun 08

Boca Raton, FL

#193 Feb 13, 2009
Darlene wrote:
"No one from the Bush crime family is being prosecuted yet. Disgusting."
Why do uneducated fools try, in their moronic little ways, to tie everything to politics? Until you have the education and the accomplishments of a Bush or an Obama, keep your stupid mouth shut! Don't you realize how idiotic you sound?
I happen to have their level of education and agree with that poster-- any other leader on this planet having done what Bush ordered would have been hunted down for war crimes and prosecuted. Quite a few educated memebers of MENSA agree on that. If you were smart enough to be a part of that organization, and attend their group meetings, you would know the first thing about what "smart folks think."

Since: Jun 08

Boca Raton, FL

#194 Feb 13, 2009
fl ex pat wrote:
<quoted text>
Really? I'm amazed at the hypocrites on here. It's dam*n hard to save 6 months of salary when you make ten bucks an hour, but the ignorant asses on this board wouldn't know that. Most have never seen $10 an hour.
Why do you make $10/hr? Because you were probably one of the lazy do nothing types who didn't other to get an education.

If you can't save, its because you can't earn, and if you can't earn, it's because you're not willing do work hard enough, or just not smart enough.

Either way, at $10/hr, you can't save six months pay and you shouldn't be buying a house, which was the source of the poster's response and my cheering for it.

No hypocrisy, just your bitterness.

Since: Jun 08

Boca Raton, FL

#195 Feb 13, 2009
Eyes Wide Open wrote:
I'm angry and tired of watching thousands line up to try and get an eight dollar an hour job while CEOs get million dollar bonuses paid with taxpayer money.
I'm angry and tired of seeing people lose their retirement savings because some banks wanted to make a quick buck and as a result collapsed the economy and the stock market.
I'm angry and tired of watching oil companies make 40 billion dollars profit in one quarter from gouging the public for gasoline which should have been obsolete half a century ago.
I'm angry and tired of people going without medicine because the pharmaceutical companies charge them 50 dollars for a pill that cost them ten cents to make.
I'm angry and tired of the government telling me what I can and cannot put in my body if I don't want to go to jail.
I'm angry and tired of corporations telling me what I can and cannot put in my body if I want to get a job.
I'm angry and tired of seeing people use religion as an excuse to kill people.
Anybody else angry?
No man. Go see a therapist. They're called rules, and unless you are a king, everybody has to follow them at some point.

Since: Jun 08

Boca Raton, FL

#196 Feb 13, 2009
Pompano Fred wrote:
Wow. You seem to have it all figured out. And I think you probably aren't in foreclosure.
I am. I lost my job due to downsizing. The modest home that my wife and I own....we can't afford the payment because there isn't any money.
You may have this all figured out but your advice and comments are cold comfort and not welcome in this house.
I know this space is to be used for civil discourse, but I frankly don't feel very civil. You, sir, are an moron. Please don't take offense.
<quoted text>
Actually, they are a regular on this board and pretty smart too. It is you who are dumb for not saving up for rainy days. Let's run down the excuses:

1) Lost my job.
a) Get a new one-- fast, take a pay cut if necessary. Or better yet, maintain 6 mos of savings and DO NOT SPEND IT.
2) No jobs to get.
a) Use savings, do side work, flip burgers or sell your house.
3) Can't sell-- upside down on mortgage.
a) Your fault-- negotiate with the mortgage holder for lower payments/short sale, whatever it takes, downsize your cars to crappy rat traps, restructure all captital outlays in addition to reducing the cash outlay to your mortgage. Maintaining lower payments slows foreclosure but hits your credit-- which again, is your only option for not saving. Your choice, your credit or your home.
4) Medical bills.
a) Let them hit your credit-- they can't take your house for those bills.
5) Medical condition/accident/injury/etc.
a) If you are no longer able to work, and didn't maintain disability insurance, it is your fault. But, go to the answer for #3 and start there.
6) Can't sell-- no buyers.
a) This is my favorite. Drop the friggin' price!! Your realtor probably has little or any real knowledge of finance and is misguiding you. If you can't drop your price then you OVERPAID or used your home as an ATM. That means you fed part of this runup and should have known better.

No matter how you cut it, every excuse I have heard simply points to a lakc of due diligence. My sister is in foreclosure, and she's pregnant. While I am sympathetic to some situations, people like you need to stop the name calling and finger pointing and take a look in the mirror, because you are the one responsible for where you are today-- PERIOD.

We're sorry, but this is life, and life IS NOT fair.
upwad

Miami, FL

#197 Feb 13, 2009
fl ex pat wrote:
<quoted text>
Really? I'm amazed at the hypocrites on here. It's dam*n hard to save 6 months of salary when you make ten bucks an hour, but the ignorant asses on this board wouldn't know that. Most have never seen $10 an hour.
I last saw $10 an hour when I was a teenager back in the mid 90's. If you're making $10 an hour today, you're either young, lazy, fresh off the boat, or - in your case - mentally and emotionally demented. Try controlling your angry outbursts and self-pity so that you can do more than just get fired from a string of fast food jobs.
Sure

New York, NY

#198 Feb 13, 2009
The Anti-dope wrote:
<quoted text>
Actually, they are a regular on this board and pretty smart too. It is you who are dumb for not saving up for rainy days. Let's run down the excuses:
1) Lost my job.
a) Get a new one-- fast, take a pay cut if necessary. Or better yet, maintain 6 mos of savings and DO NOT SPEND IT.
2) No jobs to get.
a) Use savings, do side work, flip burgers or sell your house.
3) Can't sell-- upside down on mortgage.
a) Your fault-- negotiate with the mortgage holder for lower payments/short sale, whatever it takes, downsize your cars to crappy rat traps, restructure all captital outlays in addition to reducing the cash outlay to your mortgage. Maintaining lower payments slows foreclosure but hits your credit-- which again, is your only option for not saving. Your choice, your credit or your home.
4) Medical bills.
a) Let them hit your credit-- they can't take your house for those bills.
5) Medical condition/accident/injury/etc.
a) If you are no longer able to work, and didn't maintain disability insurance, it is your fault. But, go to the answer for #3 and start there.
6) Can't sell-- no buyers.
a) This is my favorite. Drop the friggin' price!! Your realtor probably has little or any real knowledge of finance and is misguiding you. If you can't drop your price then you OVERPAID or used your home as an ATM. That means you fed part of this runup and should have known better.
No matter how you cut it, every excuse I have heard simply points to a lakc of due diligence. My sister is in foreclosure, and she's pregnant. While I am sympathetic to some situations, people like you need to stop the name calling and finger pointing and take a look in the mirror, because you are the one responsible for where you are today-- PERIOD.
We're sorry, but this is life, and life IS NOT fair.
Good post. Unfortunately for folks like Pompano Fred, the realities of the real world are harsh. At this point, Pompano Fred can either waste his time on this board complaining about plight or he can go out and search for a job. Better, yet, he can take any job (Delivering pizza? Working fast food?) until he can find a long-term, well-paying job.

But, here's what really get me about this victimhood status that are given to those facing foreclosure: Most of them rented homes for years before the credit markets opened their floodgates. The vast majority put zero down on their homes. Many took massive amounts of money out their homes through HELOCs. Now, they're facing forced eviction.

So, what are they really out? They'll go right back to renting a home like they did before mortgage underwriting standards disappeared. Sure, they'll have dinged credit, but the dinged credit will probably help them in the long run (will prevent them from getting themselves into more debt). Many actually made money on their home-buying experience through HELOCs. But, hardly any of those facing foreclosures are out any real cash.

That's why I don't feel sorry for the vast majority of them.

Since: Oct 08

hollywood, fl

#199 Feb 13, 2009
Arbitrator wrote:
<quoted text>
Your logic makes sense with a few exceptions. First, most mortgages are typically paid for by two income families. Granted, emergency funds are something everyone should have but most don't and most emergency funds get chewed up quickly if both incomes are lost. Those who are laid off rarely find new employment that includes wages and benefits close to that before the layoff especially in a recession where employers are bombarded with applicants.
If the period of unemployment lasts beyond that of the emergency fund balance and unempoyment compensation, it becomes almost impossible to continue making payments for all bills without some additional help.
Many people who have fee-based businesses, even the inflation and recession resistant fields such as the legal profession I am in have seen business drop off about 50%. So, this can translate into a significant salary reduction even though employees are working.
My point is, even though reasonable effort is or has been made to compensate for potential loss of employment and other family crisis related issues, it is still possible to lose a home to foreclosure. In the past, those in financial trouble were able to sell their homes, sell their cars, etc. Currently there is little demand from buyers for new purchases. Addionally, opportunities to find additional employment for supplemental incomes are difficult to find to say the least. Many positions, even governmental public sector, that were, in the past, relatively secure are far less secure today.
Very well said.

Since: Oct 08

hollywood, fl

#200 Feb 13, 2009
bulldurm wrote:
<quoted text>...a mortgage is not a
good thing. you need to get rid of it as soon as
possible.
Agreed. We are owned by both our assets and our liabilities.

Since: Oct 08

hollywood, fl

#201 Feb 13, 2009
upwad wrote:
<quoted text>
I last saw $10 an hour when I was a teenager back in the mid 90's. If you're making $10 an hour today, you're either young, lazy, fresh off the boat, or - in your case - mentally and emotionally demented. Try controlling your angry outbursts and self-pity so that you can do more than just get fired from a string of fast food jobs.
As you say, "Try controlling your angry outbursts." Ignorance, bigotry, hypocrisy, conceit, and self-righteousness are not the most admirable qualities.

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