The residential real estate market is starting to turn around...

[dstark]

<p>Notrichenough…uhhhhh yeah. :)</p>

[artloversplus]

<p>

Love that Unemployment site!</p>

<p>

</p>

<p>In retrospect, that unemployment chart really correlated to my earnings. As a Realtor, I made the most money in 2007 which has the lowest unemployment in my county, after that, my pocket is in the tanks. This year looks much better than the last. :)</p>

[dstark]

<p>ahhhh…so things are turning around…;)</p>

[chocoholic]

<p>So how do you think today’s deal is going to impact inventory, prices, etc…</p>

<p>[Banks</a>, States Reach Mortgage Accord - WSJ.com](<a href=“http://online.wsj.com/article/SB10001424052970203824904577212871116705212.html?mod=WSJ_hp_LEFTTopStories]Banks”>http://online.wsj.com/article/SB10001424052970203824904577212871116705212.html?mod=WSJ_hp_LEFTTopStories)</p>

<p>

Government officials announced agreements Thursday worth about $25 billion with five major banks, capping a yearlong push to settle federal and state investigations of alleged foreclosure abuses by lenders…The bulk of the settlement requires banks to spend nearly $20 billion to cut loan balances for borrowers at risk of foreclosure and to refinance others who are current on their loans but owe more than their homes are worth."

</p>

[notrichenough]

<p>^ What amounts are in the “Damages Paid to People Who Were Illegally Foreclosed On” and “Banks are Required to Clear the Titles of Properties Bought at Foreclosure” sections?</p>

[artloversplus]

<p>Here is some thing that is more clear:

The bulk of the settlement, about $20 billion, would go to one million American homeowners who would have their mortgage debts reduced or their loans refinanced at a lower interest rate. It also includes $1.5 billion for roughly 750,000 people who lost their homes to foreclosure between 2008 and 2011, with each receiving between $1,500 and $2,000. </p>

<p>Economists do not expect a big boost for the economy, in part because the banks have three years to distribute the aid. Some experts questioned whether the accord will do much to stabilize the housing market and its glut of millions of foreclosed homes

</p>

<p>From NY Times</p>

<p>So, everyone who “wrongfully foreclosed” will get $500~$700/YEAR for 3 years.</p>

[LasMa]

<p>This settlement is just the first act. The investigations continue, and there’s nothing in the settlement which prevents criminal charges by authorities, or lawsuits by borrowers. There may also be action by the SEC on the mortgage-backed securities fiasco. Personally, I’d like to see a few of those CEOs behind bars.</p>

[2girlzmum]

<p>I read some speculation that with this deal done, there will actually be a bit of a bump in foreclosures that had been held up because of the suit. But “they” expect it to be helpful in the long run.</p>

[CountingDown]

<p>My brother has dropped the price on his house by one-third in the past three months in a desperate move to get it sold before the bank forecloses (Cherokee County outside Atlanta).</p>

<p>We are down ~20% in the current market (DC burbs), but that was off a high of 240% off our purchase price. We’d need to sink good $$ into the place if we wanted to sell, though. Kitchen, bathrooms, windows and doors all need repairs/replacement.</p>

[LongPrime]

<p>Add to the inventory mix are empty nesters (Boomers) wanting to downsize 3+ bedroom suburbia homes, and will be pulling down retirements. </p>

<p>Plus the last of the Echo Boomers are graduating and attempting to start and establish careers. They will never marry and have children.</p>

[qdogpa]

<p>Counting down, surprised to hear about DC burbs, we have friends who struggled to find a home, and paid nearly list price with the home being only on market for a few days…they lost several other homes they were interested in becuase they didn’t make an offer fast enough…that said, i am certain these homes would have sold for more during the frenzy of the 2005 era…</p>

<p>I have no intention of downsizing, my kids are welcome to live here after college to save some money…plenty of room, with private bathrooms for them…</p>

[OhioMom3000]

<p>“Plus the last of the Echo Boomers are graduating and attempting to start and establish careers.”</p>

<p>Last of Echo Boomers are not even in college yet.</p>

[vballmom]

<p>Phil Angelides just stated on NPR that the total of all underwater equity is $700 billion. This settlement was $26 billion, so really just a drop in the bucket, limited to those who dealt with the 5 banks in the settlement. The fact that Fannie and Freddie refuse to modify loans is the most serious issue that needs to be dealt with in order to resolve the bulk of foreclosures at this point.</p>

[notrichenough]

<p>I’ll confess I don’t really understand why certain people are getting their debts reduced by $20K.</p>

<p>While the banks may not have always dotted every “i” and crossed every “t” before foreclosing, the fact is that, except in the rare case where an error was made, every single one of those homeowners was behind on their mortgage and could be legally foreclosed upon. What is the great injustice? $2000 because the bank didn’t properly file a document, OK, I can see this. But a $20K hand-out?</p>

<p>A small amount like that is going to save very few if any people from foreclosure, that’s less than $100/month on a mortgage. Refinancing down to 3 or 4 percent might help some, but shaving a couple hundred off of your mortgage when you can’t make the payment at all isn’t going to help. Aren’t something like 90% of the people who managed to get their mortgages reworked under current programs still in arrears?</p>

<p>At least this time it’s not a taxpayer bailout (yet - it will be if Fannie and Freddie jump on board).</p>

<p>If the banks are truly responsible for the mortgage mess, and not people’s stupidity and greed, then they are getting off easy. If not, once again people are being rewarded for being irresponsible.</p>

<p>What am I missing?</p>

[qdogpa]

<p>^^^^You are missing Absolutely nothing^^^^</p>

[artloversplus]

<p>

or their loans refinanced at a lower interest rate.

</p>

<p>Actually, if the $20K goes to reduction in interest rate will be very helpful. For some one who is paying $2500/mo mortgate, a ~$1000 temp relief is a lot and it can go almost 2 years with that $20K help. After 2 years, the housing market may come back and then they may sell it without too much of negative. In the mean time, bank is going to have a bunch of performing loans, as a result they can make loans easier…</p>

[LongPrime]

<p>“What am I missing?”</p>

<p>I think there is more to this agreement than just compensation to the aggrieved and a penalty to the entities who should have known better. </p>

<p>The title insurance companies need to absolutely guarantee legal ownership, else there is no title insurance. Once the Banks own the property, how does it resale it, rather would the succeeding lender make loans and the buyer take a loan? </p>

<p>I defer to the professionals/</p>

[LasMa]

<p>Notrichenough: What you’re missing is that this isn’t just about the affected homeowners. The continuing housing mess is a drag on our entire economy, and we have no hope of getting back on our feet until this problem is solved.</p>

[DrGoogle]

<p>Can someone explains what does this mean? Apparently it’s not $20K according to the LAtimes.
[California’s</a> size lands state big share of foreclosure settlement - latimes.com](<a href=“http://www.latimes.com/business/realestate/la-fi-mortgage-california-20120211,0,4100157.story]California’s”>California's size lands state big share of foreclosure settlement)</p>

<p>

Key to Harris was getting a significant amount of principal reduction for borrowers. Under the terms of the deal, banks can write principal down to the current value of the loan, or so the monthly mortgage payments make up only 31% of a borrower’s income, according to the person familiar with the deal.

</p>

[notrichenough]

<p>

The title insurance companies need to absolutely guarantee legal ownership, else there is no title insurance. Once the Banks own the property, how does it resale it, rather would the succeeding lender make loans and the buyer take a loan?

This is actually a huge issue in my state. Google “U.S. Bank v. Ibanez”.</p>

<p>I didn’t read anything about the agreement that addresses this.</p>