September 07, 2008

The end of the Great Housing Ponzi Scheme: 9% of all mortgages in America now behind in payment or in default.


9%

Over 4 million homedebtors, fraudsters and housing gamblers have chosen to stop paying.


And it's just gonna get worse.

Thank you realtors on commission. Thank you Bush and your "ownership society". Thank you toxic mortgage brokers. Thank you MSM. Thank you homebuilders. Thank you appraisers. Thank you NAR, NAHB and MBA. Thank you Freddie, Fannie, FHLB and FHA. Thank you Angelo Mozilo and Michael Perry. Thank you Congress. Thank you Casey Serin.

And a big thank you to the millions and millions of Americans who refused to look at the economic fundamentals of housing, who treated homes like lottery tickets, and got us into this mess by 'buying' overpriced homes they couldn't afford.

Mortgage delinquency and foreclosure rates hit records last quarter. And more prime borrowers are being affected.

About 4 million U.S. homeowners -- including more than 65,000 Minnesotans -- were either behind in their mortgage payments or in foreclosure at the end of June, according to a second-quarter survey released Friday by the Mortgage Bankers Association.

34 comments:

Screwed Pooch said...

...and this is just the beginning. Expect this to get worse...how could it get better? There is nothing, not a dim hope or ray of light that will pull us out of this mess. We should expect blood from our leaders. However, the people responisble for this mess are our leaders. They do their best to hide the truth since ultimatley they are complete failures..now watch as these baby "doomers" begin to retire. I don't want to give a red cent to Social Security...it is a fraud as well. Well at least I won't have to worry for another 25 years...good lucky to all the aging hippies who became the corupt yuppies, your greed will be the story of legends. Doesn't matter who you cast your vote...there won't be any money around to pay for anything in a year or two.

George L said...

Keith,you can't end your blog,this is just getting good.we're only in the bottom of the 3rd and someone needs to be around to document this mess.

the beginning of the end it's finally here.let's see of your detractors try to spin these numbers...

Anonymous said...

To screwed pooch,

There are quite a few of us renting aging hippies who are victims of "corupt" homeowning (renting) yuppies. And of Casey as well. Don't cast us all in the same light.

Anonymous said...

New Casey Serin report

http://au.lifestyle.yahoo.com/sunrise/video/weekend/index.html?autoplay_id=9622100#embedded-video-top

Anonymous said...

Keith,

I have an idea...

Everyone stop paying their mortgage starting next month, in protest of the bailouts.

RayNLA

Andrew from Russia said...

Looks like housing is swiftly reasserting itself as a durable consumer item not worth 30 years of sweat and debt. Sure, they aren't making any more of these little spots of uncultivable land ("Buy now or we'll run out of arguments!")

Synanon said...

Have no fear.

Your re-education has already begun.

You are right where you need to be.

Anonymous said...

screwed pooch,

and others who want to place blame on this atrocity. I'm a boomer blue collar worker and I have not received any greedy ill gotten gains at your expense believe me. I'm just as fucked as you are. Not all boomers are greedy fucktards.

Stevil

Anonymous said...

I believe it actually might be higher. I have a job and I'm falling behind more and more. I don't think the banks are reporting the truth anyway.

Anonymous said...

Assembly Bill 844, by Assemblyman Tom Berryhill, R-Modesto, seeks to reduce metal thefts by requiring recyclers to hold payment for three days and to require photo identification and a thumbprint. As we've said previously, this is a critical move to address a rampant crime wave statewide.

Anonymous said...

Keith,

I have an idea...

Everyone stop paying their mortgage starting next month, in protest of the bailouts.

RayNLA

That would require courage and the ability to pay attention for longer than a commercial soundbite. Scary.

JaneZ

jim said...

whats the normal rate?

Paul E. Math said...

Hey, at least wall street and the foreign investors who bought the MBS through F&F will get paid by us, the taxpayers.

Isn't that great? Ahh, it feels so good. Really helps me sleep at night knowing these people bought homes they couldn't afford and I get to pay their mortgage.

How can you end this blog, Keith? How can you do it to us? I know it must take up a lot of your time but can't we come to some kind of compromise solution?

Anonymous said...

what screws around comes around...kinda like a Joshua Tree Karma, if you will.

screwed pooch said...

To anyone who took offense at my baby "doomer" remarks...your generation might not be responsible for this mess 100% and you in particular might not even be a greedy bastard...however, you are holding the mop and bucket...please clean up the mess on isle six through twenty. Your generation was managing the store that allowed outright theft and turned a blind eye to corruption at a level unprecedented.

Mooses said...

Right on schedule....just went from a Category 1 to Category 2 hurricane. Will be a 5 when it is in full swing.

Long_Time Banker said...

That's right, and it will all get much worse.

I do workouts for a very large Bank and we let homeowners go many, many months without making payments on their loans if they just pretend to want to honor their obligations with us. We pretend they will pay, and they pretend we won't file NODs or initiate third party repo vendors. It's a nice band aid measure till all Hell breaks loose.

Ahh, the signs of the times, the end times that is. You might want to crack open that book (Bible) you never read and try and decipher what the hidden, but now clear, message is, before it's too late.

Anonymous said...

If Obama gets into office will they blame him for this mess. I keep Fox news blaming Clinton for this mess....

Anonymous said...

Historians have their work cut out for them.

k.w. - Southern Ca. said...

9% bullox - we're looking at a much greater % of foreclosures and bank-owned properties.

The news media figures are no longer held accountable for their constant lying to the public.

However, one things for sure, reality is now staring more and more people in the face every day as this housing mess gets deeper and deeper.

The real news about the housing crisis is coming to a neighborhood near you.

k.w. - Southern Ca. said...

You nailed that one right on the head.

Screwed Pooch said...
...and this is just the beginning. Expect this to get worse...how could it get better? There is nothing, not a dim hope or ray of light that will pull us out of this mess. We should expect blood from our leaders. However, the people responisble for this mess are our leaders. They do their best to hide the truth since ultimatley they are complete failures..now watch as these baby "doomers" begin to retire. I don't want to give a red cent to Social Security...it is a fraud as well. Well at least I won't have to worry for another 25 years...good lucky to all the aging hippies who became the corupt yuppies, your greed will be the story of legends. Doesn't matter who you cast your vote...there won't be any money around to pay for anything in a year or two.

Anonymous said...

RE: "Ahh, the signs of the times, the end times that is. You might want to crack open that book (Bible) you never read and try and decipher what the hidden, but now clear, message is, before it's too late."

********************************

It's too late. The Christians think the Republican party is the party of the Jesus-Do-Gooders. We are doomed!

PS: The bible and its FAIRY-TALES ARE NOT the 100% truth, or, written in stone. Leaders and People Make War and Peace, NOT FAIRY-TALE GODS WITH HURDS OF SHEEP FLOATING IN THE CLOUDS. Sure it has good WISDOM and STORIES, but NOT FUTURE FACTS OF 100% TRUE EVENTS!

Save The Planet! Impeach The Bush/Cheney/Jew-Co Regime!

FlyingMonkeyWarrior said...

Everyone stop paying their mortgage starting next month, in protest of the bailouts.
+++++++++++++++++++
Stop paying everything but electric, and phone. Go to cash. I closed my only bank account I have had for 35 years and am in cash only. Every thing else I am involved in is in Latin America and in alternative energy.
I am out of the system in Amerika. Bring it on.

FlyingMonkeyWarrior said...

some kind of compromise solution?
++++++++++++++++++++++++++++++
Yes, ditto. Let me know if I can help, you have my e-mail.
FMW

Anonymous said...

Thank you Democratic party for creating Fannie Mae and Freddie Mac.

Thank you corrupt mains stream media and socialist blogs for never revealing that fact to Hussein Obama cultists and other retard voters.

Anonymous said...

Nothing to see here...look it's Britney Spears and Justin Timberlake rapping like a black at the MTV awards! Look people, Obama is eating ice cream! Listen up, Jay Z or any other rapper will say something very insightful about the Anointed One at the MTV awards!

Anonymous said...


Assembly Bill 844, by Assemblyman Tom Berryhill, R-Modesto, seeks to reduce metal thefts by requiring recyclers to hold payment for three days and to require photo identification and a thumbprint. As we've said previously, this is a critical move to address a rampant crime wave statewide.


What in the hell are you talking about? What does this have to do with mortgage defaults?

roxanne said...

'What in the hell are you talking about? What does this have to do with mortgage defaults?'

it has a lot to do with the mortgage defaults cuz these thieves are stripping the houses causing them to be worth less. i live in an area where they take everything including the kitchen sink. there seems to be a new fad of turning on the water to ruin the house. i've seen a couple like that near where i live. that means that if the banks keep losing big money on these stripped out houses, then they go under and your taxes just paid the thief. im no bank lover just telling it like it is.

Anonymous said...

10 or more years into the future, the HISTORY BOOKS, will report that more than 50% off all the mortgages written during the 'HOUSING BUBBLE' ended in foreclosure!

Anonymous said...

Saw a house for $275k in a nieghborhood where everything is in the low $300k's. Zillow says owners have been there since the 1980's. When it sells, there go the comps! But more to the point - everything is still way high. It's a decent neighborhood, but even $275 represents a somewhat overinflated price, based on extrapolating historical trends sans bubble.

Anonymous said...

the banks turn off the power and the sump pumps stop.
in 2 wks you have the dreaded blk mould.
mold remediation can cost up to 150.00/sq ft.

Anonymous said...

Keith,

Time to start a pool/poll on the next really big bank to go tits up.

k.w. - Southern Ca. said...

A house is worth only what someone will pay for it ... the price has no choice but to come way, way down.

Anonymous said...
Saw a house for $275k in a nieghborhood where everything is in the low $300k's. Zillow says owners have been there since the 1980's. When it sells, there go the comps! But more to the point - everything is still way high. It's a decent neighborhood, but even $275 represents a somewhat overinflated price, based on extrapolating historical trends sans bubble.

Nick said...

I am among those 9%. I have not made a mortgage payment for eleven months. This September 15 it will be twelve months! And my lender has not even filed a notice of default. Oh, they send me letters in the mail and lots of phone calls. I live in a 36 unit townhouse development and they (Chase bank) took possession of eleven townhouses. They are all bank owned and no one wants them. So I guess with me, I got lucky since Chase doesn't want to add to their inventory.

It's funny how people who drive a 1988 Honda, wear clothes from Wal-Mart and are thrifty (kind of like the profile of an HP'er, LOL, LOL, LOL) are getting screwed. While people like me (exotic tastes, luxury international vacations, a Lexus, a nice 2800 square foot townhome, etc...) are benefiting. Well HP'ers, great going! You predicted an economic collapse and it may happen. But I made out like a bandit and YOU DIDN'T!