California Foreclosures are Ramping
Chuck Ponzi May 13th, 2008
There are 2 must-reads for the future of foreclosures:
1. Calculated Risk has a great visual of projected 2008 foreclosures in “1000 Foreclosures per Day in California”
2008 is off the charts. Anyone calling a bottom at this point doesn’t have the facts straight. Notice of Defaults are projected at over 450K based on Q1 data. You may start to see some houses make sense in pricing, but there’s no doubt we’re going to overshoot fair valuation on the way down this time. No doubt at all.
2. The second one is Mr. Mortgage’s videolog and blog where he recieved California Foreclosure stats from Foreclosure Radar 2 days early. You can alternatively read it here
if you cannot access youtube. (at work, anyone?)
Some great excerpts:
we will have approx 122,000 units slamming the CA auctions over the next 4 months.
That’s over 1000 per day. That’s making the 90’s bust look like a walk in the park. However, when one considers that it is likely that more than half of all purchases within the last 3 years were speculative, the toll is likely largely hitting only those who took excessive risk. Boo Hoo.
Remember to visit Angry Renter. Please be sure to check out ways to contact your local representative to voice your opinion against any kind of government intervention. The invisible hand of the market is in the process of sifting the wheat from the chaff.
In California, renters and homeowners with no mortgage outnumber by a wide margin the number of reckless individuals who overextended themselves. Don’t let yourself be duped into inaction. I’ll post more on specifics later.
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Bring it on!! At this pace, we will probably look a lot like the neighborhoods in the RoboCop movie in Detroit. It’s not looking good for many in the Inland Empire area. Just saw a co-workers house in Fontana that they purchased last year drop nearly 20% in the last few months….. appears they are about $100,000 upside down now? The next test will be the responsibility of those who are under water and if they stay the course…based on the current events, I suspect many will bail since a home is suppose to build wealth over time and many are not seeing much future in building negative wealth.
Love the article today–fascinating stats.
I do have a bone to pick with ya, though–this “Angry Renter” thing is a Dick Armey/Steve Forbes (yeah, that Forbes) gig. They care about renters about as much as Citibank does. They don’t want a bailout for reasons of their own. The fact that renters are reasonably ticked off about the bailout is just a happy circumstance for them, as it allows them a way to tap into popular support. But they’re being slimy with Angry Renters.com, acting as if their site was sprung up from the hearts and minds of ordinary Joes. It ain’t. Unless you think multi-millionaires are ordinary Joes.