Post by The Great Aztec Joe on Aug 11, 2010 5:42:21 GMT -8
"Waves of More Foreclosures" = More Bank Failures + Big Trouble for the FDIC,
The U.S. housing market continues to send mix signals. More homes continue to enter foreclosure but the number of homeowners carrying so-called “under water mortgages,” declined in the second quarter, Zillow.com reported Monday.
21.5% of homeowners owed more on their mortgage than their home was worth in the second quarter, that’s down from 23.3% in the first quarter and 23% a year ago.
“There are a lot homes caught up in mortgage modifications,” explains Richard Suttmeier of ValuEngine.com, which he says results in a temporary stability in home prices. The key word: temporary.
“There’s waves of more foreclosures coming in the housing market because very few of the HAMP modifications are becoming permanent,” he says.
Meanwhile, the backdoor bailout of the housing market continues. Freddie Mac reported a $4.7 billion second quarter loss Monday and asked the government for another $1.8 billion in aid. Last week, Fannie Mae - Freddie Mac’s larger counterpart - asked the government for $1.5 billion. That brings the total tab for the government-sponsored entities to $148 billion. Suttmeier estimates, Fannie and Freddie, will wind up costing taxpayers at least $400 billion.
finance.yahoo.com/tech-ticker/%22waves-of-more-foreclosures%22--more-bank-failures--big-trouble-for-the-fdic-suttmeier-says-535314.html?tickers=xhb,xlf,FAZ,JPM,fre,fnm,C&sec=topStories&pos=9&asset=71515b958d49024f701c3a4563590ef7&ccode=
The U.S. housing market continues to send mix signals. More homes continue to enter foreclosure but the number of homeowners carrying so-called “under water mortgages,” declined in the second quarter, Zillow.com reported Monday.
21.5% of homeowners owed more on their mortgage than their home was worth in the second quarter, that’s down from 23.3% in the first quarter and 23% a year ago.
“There are a lot homes caught up in mortgage modifications,” explains Richard Suttmeier of ValuEngine.com, which he says results in a temporary stability in home prices. The key word: temporary.
“There’s waves of more foreclosures coming in the housing market because very few of the HAMP modifications are becoming permanent,” he says.
Meanwhile, the backdoor bailout of the housing market continues. Freddie Mac reported a $4.7 billion second quarter loss Monday and asked the government for another $1.8 billion in aid. Last week, Fannie Mae - Freddie Mac’s larger counterpart - asked the government for $1.5 billion. That brings the total tab for the government-sponsored entities to $148 billion. Suttmeier estimates, Fannie and Freddie, will wind up costing taxpayers at least $400 billion.
finance.yahoo.com/tech-ticker/%22waves-of-more-foreclosures%22--more-bank-failures--big-trouble-for-the-fdic-suttmeier-says-535314.html?tickers=xhb,xlf,FAZ,JPM,fre,fnm,C&sec=topStories&pos=9&asset=71515b958d49024f701c3a4563590ef7&ccode=