Bear Market Investing » Real Estate

Report Forecasts More ARM Foreclosures

Big Bear — Wed, 09 Sep 2009 02:12:22 +0000

A new report by Fitch Ratings, suggests that the the housing market is likely to suffer a new round of foreclosures. The report focuses on the fact that about 70 percent of Adjustable Rate Mortgages (ARMs) will adjust in 2011, leaving the note holders with higher payments. These ARMs represent $189 billion in outstanding debt.

From the Washington Post:

“In its report, Fitch estimates that $134 billion in option ARMs will reset in the next two years. It expects monthly payments to jump 63 percent on average, or $1,053 a month, for loans adjusting this year and next, prompting a rise in defaults and foreclosures.”

Defaults Likely to Force More Bank Failures

Big Bear — Thu, 21 Aug 2008 17:47:54 +0000

“The Federal Deposit Insurance Corp. (FDIC) has been called in as receiver for eight banks through August 4, 2008, following the closure of four institutions in 2007. Prior to the recent closings, the FDIC had not been appointed as receiver for a failed bank since 2004. Regulators expect bank failures in the near term to increase, partly due to some banks’ concentration in real estate loans and construction and development lending.” Source: AM Best

S&P/Case-Shiller Home Price Index: 15.5% drop

Big Bear — Tue, 29 Jul 2008 15:04:33 +0000

There seems to be not end to decline house prices. The S&P/Case-Shiller shows almost 16% decline in prices from last year.. From CNNMoney.com…

“May home prices dropped a record 15.8% from a year ago, according to the S&P/Case-Shiller Home Price Index of 20 cities. It was the 22nd consecutive month of decline recorded by the index. Prices fell 0.9% from April to May.

Each of the 20 metro areas covered by the index posted annual declines; nine posted record lows and 10 cities recorded double-digit drops.”