Recovery Summer: Mortgage applications hit 13-year low, foreclosures spiking

posted at 8:48 am on July 15, 2010 by Ed Morrissey

The hits just keep on coming in the housing market, which predict that Barack Obama’s Recovery Summer is turning into the Endless Bummer.  Yesterday, the Associated Press reports that mortgage applications hit a 13-year low last week despite low mortgage rates.  Even refinancing applications dropped significantly:

Demand for loans to purchase U.S. homes sank to a 13-year low last week, and refinancing demand also slid despite near record-low mortgage rates, the Mortgage Bankers Association said on Wednesday.

Requests for loans to buy homes dropped 3.1 percent in the week ended July 9, after adjusting for the Independence Day holiday, to the lowest level since December 1996, the industry group said.

Refinancing applications fell 2.9 percent, and the mortgage market index that reflects total loan demand also fell 2.9 percent.

Average 30-year mortgage rates edged up 0.01 percentage point to 4.69 percent, but were near the record low of 4.61 percent set in March 2009, based on MBA records dating back to 1990.

It seems as though the two tax credits took all of the demand from this quarter and moved it up into earlier quarters.  Now that the artificial stimuli have ended, most of those who intended to buy have already done so in order to take advantage of a useless taxpayer subsidy of the sales.  There remains only a historically small demand among those who either didn’t qualify for the tax break or didn’t need it, or perhaps a cadre of buyers who think that Congress will create yet another subsidy for sales and are waiting them out.

Meanwhile, the attempt to bully and wheedle banks into stopping foreclosures last year didn’t do much to save houses in default.  Again, it’s the Associated Press informing people today that there will be more foreclosures in 2010 than there were in 2009, breaking records again:

More than 1 million American households are likely to lose their homes to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans.

Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service.

“That would be unprecedented,” said Rick Sharga, a senior vice president at RealtyTrac.

By comparison, lenders have historically taken over about 100,000 homes a year, Sharga said.

Remember when the Obama administration announced its plan to spend billions of dollars to prevent foreclosures?  The White House threatened banks that attempted to seize defaulted property and tried to get judges to reset the principal of the loans in court.  None of that has helped stop the wave of foreclosures; it has only delayed and strung out the pain, ironically cresting just as voters go to the midterm polls.

None of the stimuli and the rescue plans worked, because none of them addressed the core problem: joblessness.  Without jobs, people lose their homes no matter how much the government intervenes to stop it.  Some houses were underwater, while other homeowners simply couldn’t afford any kind of house payment, thanks to a job market gone cold.  The number of actual jobs has decreased by three million since the passage of Porkulus over seventeen months ago, and having a million foreclosures on that kind of job loss wouldn’t exactly be unexpected.

Until we get people back to work, these programs are simply futile.  A homebuyer tax break doesn’t help someone without a job qualify as a buyer, and restructuring plans for existing mortgages can’t help an unemployed person make a mortgage payment.  We need to shift gears quickly to reduce the massive uncertainties created by the radical Democratic agenda, reduce taxes and the regulatory burden, and get capital working in the US again so that we have employment at a level where foreclosures return to their normal level.  Only then will housing markets stabilize.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Well Obama did promise to pivot to jobs….6 months ago.

Doughboy on July 15, 2010 at 8:52 AM

This is only July. Six months longer until Obama’s tax hike goes into effect, months away from Health Care debacle. It won’t be getting any better anytime soon.

Even with a republican ‘controlled’ congress, Obama will continue to advance his agenda and blame republicans for all the misery.

There is no end in sight, at least not for 3-4 years, and that might as well be a lifetime.

Skandia Recluse on July 15, 2010 at 8:55 AM

None of the stimuli and the rescue plans worked, because none of them addressed the core problem: joblessness. Without jobs, people lose their homes no matter how much the government intervenes to stop it

Well thanks for the inside information, Phineas J. Whoopy, you’re the greatest.

thomasaur on July 15, 2010 at 8:58 AM

another man made disaster…

mjbrooks3 on July 15, 2010 at 8:59 AM

Just in time for the mid-terms…

PatriotRider on July 15, 2010 at 8:59 AM

The value of homes is taking a huge hit. We were told it will take four or five years for our home to be back at what we bought it for, eight years ago. This new finance bill being supported by Brown/Snowe/Collins will make it even worse. Folks that have their savings tied up in their homes are royally screwed.

Redistribution of wealth = private savings and earnings all going to the feds.

Hening on July 15, 2010 at 9:05 AM

Tre are also some anlyses suggesting that many of the significant new regulations on mortgage lending in the FinReg bill will take effect immediately when the bill is signed. This is an unknowable and unpriceable liability for all lenders, especially those who fund mortgages originated by mortgage brokers. The bill prohibits certain types of compensation of brokers and the lenders still haven’t come up with a new way to pay them. So an entire class of loans basically becomes illegal the day Obama signs this bill. And believe me, this is a feature, not a bug.

Meanwhile, the SEIU and a bunch of other unions in New York City are trying once again to shake down all the big lenders that they claim are “not doing enough” to prevent foreclosures.

I had some hope earlier this year for getting another job in this industry, but now I am looking everywhere else.

rockmom on July 15, 2010 at 9:06 AM

Well thanks for the inside information, Phineas J. Whoopy, you’re the greatest.

thomasaur on July 15, 2010 at 8:58 AM

LOL!! Yeah, I didn’t realize that electing Phineas J. Whoopy would be an improvement to Obama. I suspected it, though. ;-)

Ed Morrissey on July 15, 2010 at 9:11 AM

Was the White House message team unaware of how bad the economy was going to be all summer long (daily news stories) when they came up with the “Recovery Summer” message?

myrenovations on July 15, 2010 at 9:14 AM

If the Democrats are bummed out by the end results of Recovery Summer, wait until they feel the full impact of Down Fall.

pilamaye on July 15, 2010 at 9:16 AM

Was the White House message team unaware of how bad the economy was going to be all summer long (daily news stories) when they came up with the “Recovery Summer” message?

myrenovations on July 15, 2010 at 9:14 AM

As incompetent as they are, I can’t believe they weren’t aware of how bad it really is. But I think they’ve drunk as much kool-aid as some of their supporters and really believe in their ability to sell this BS to the electorate.

Doughboy on July 15, 2010 at 9:16 AM

If the Democrats are bummed out by the end results of Recovery Summer, wait until they feel the full impact of Down Fall.

pilamaye on July 15, 2010 at 9:16 AM

+100 !!

Key West Reader on July 15, 2010 at 9:18 AM

It seems as though the two tax credits took all of the demand from this quarter and moved it up into earlier quarters.

Expect a government “cash for clunkers” coming soon to the housing market.

Rovin on July 15, 2010 at 9:18 AM

Mortgages are racist.

Rocks on July 15, 2010 at 9:18 AM

A sincere question:

With this approaching storm, why in the world would William Jefferson Clinton touch this join Cap’n Obama yesterday to help the rookie steer his dingy?

If I may switch metaphors, why would Mr. Clinton stain himself with the viscous residue of Obama’s massive economic failure?

You’d think Clinton would stay far away from President Obama. So what’s going on, is Clinton getting senile? Is it that simple? Or is he just powerless to avoid the spotlight?

jeff_from_mpls on July 15, 2010 at 9:18 AM

So if the banks take over the houses and the government takes over the banks, who owns all the houses?

UnderstandingisPower on July 15, 2010 at 9:19 AM

Oh well. Not like I was ever going to be able to afford a home anyway. 8-p

Dark-Star on July 15, 2010 at 9:20 AM

I expect a huge order for some sort of button you can wear. Something similar to WIN buttons of the past. Anyone have any ideas?

Johnnyreb on July 15, 2010 at 9:21 AM

So if the banks take over the houses and the government takes over the banks, who owns all the houses?

UnderstandingisPower on July 15, 2010 at 9:19 AM

Good news: the rightful owners will own all property!

jeff_from_mpls on July 15, 2010 at 9:23 AM

Actually the contrarian in me is almost starting to think real estate is a good buy. You sell when everyone says buy and you buy when everyone says sell. And right now the consensus by the “exprets” is that real estate is an awful investment. Which means it may be a good time to start loading up.

angryed on July 15, 2010 at 9:29 AM

You’d think Clinton would stay far away from President Obama. So what’s going on, is Clinton getting senile? Is it that simple? Or is he just powerless to avoid the spotlight?

jeff_from_mpls on July 15, 2010 at 9:18 AM

The latter. Clinton despises Obama and thinks the jug-eared one should be bringing him coffee. But he has stood, basking in the limelight and seeks to return. Remember, he’s as much of a narcissist as Odumbo, but a better politician.

Extrafishy on July 15, 2010 at 9:31 AM

A sincere question:

With this approaching storm, why in the world would William Jefferson Clinton touch this join Cap’n Obama yesterday to help the rookie steer his dingy?

If I may switch metaphors, why would Mr. Clinton stain himself with the viscous residue of Obama’s massive economic failure?

You’d think Clinton would stay far away from President Obama. So what’s going on, is Clinton getting senile? Is it that simple? Or is he just powerless to avoid the spotlight?

jeff_from_mpls on July 15, 2010 at 9:18 AM

Two reasons:

1) He’s an attention wh-re. Has the guy ever been able to stay out of the limelight?

2) He knows a Hillary run in 2012 is an impossibility. Unless Barry resigns or declines to run for reelection, there’s no way she can challenge him in a primary. The black vote is too crucial to the Democrats(just look at the events of this week), and going after the first (half)black President would be a disaster for the party. So Bill Clinton figures, why not do what’s best for the Dems right now and try to help Barry fix this mess he’s created?

Doughboy on July 15, 2010 at 9:31 AM

Is this likely to have international ramifications like 2008 did?

Crux Australis on July 15, 2010 at 9:32 AM

angryed on July 15, 2010 at 9:29 AM

It is if you have the money or can hold the loans for a while. The prices and the interest rates are low, how often does that happen? If you bought in areas with high military populations and could rent the houses it would golden. If only I had money, darn it.

Cindy Munford on July 15, 2010 at 9:33 AM

Good news: the rightful owners will own all property!

jeff_from_mpls on July 15, 2010 at 9:23 AM

Don’t mean to step on all your posts, jeff, but you made me think about Ogabe and his penchant for stealing land from white landowners and giving it to the “rightful owners”. Is it just too damned paranoid to think this could happen here?

Extrafishy on July 15, 2010 at 9:34 AM

If I may switch metaphors, why would Mr. Clinton stain himself with the viscous residue of Obama’s massive economic failure?

You’d think Clinton would stay far away from President Obama. So what’s going on, is Clinton getting senile? Is it that simple? Or is he just powerless to avoid the spotlight?

jeff_from_mpls on July 15, 2010 at 9:18 AM

Jeff,

I think Clinton knows full well that the party is in deep trouble and he may not have a skirt to hold onto without his own “liberal constituents” backing Hillary. He, (slick Willy), has his own personal agenda.

Just overheard on MSDNC:

DNCC chairman Chris Van Hollen “this November will be a referendum on the policies of the White House and this administration” ????

Hey Chris, did you leave out the full weight of your party’s participation in this disaster?

Rovin on July 15, 2010 at 9:34 AM

Just overheard on MSDNC:

DNCC chairman Chris Van Hollen “this November will be a referendum on the policies of the White House and this administration” ????

Hey Chris, did you leave out the full weight of your party’s participation in this disaster?

Rovin on July 15, 2010 at 9:34 AM

Did he really say that? And he meant it as a positive?

Doughboy on July 15, 2010 at 9:38 AM

In the cash for clunkers program, the used car that was being traded in had to be destroyed.

The new an improved cash for old homes will be you get a home buyers tax credit only if you destroy your old home. That way it will spur the new home building market.

Detroit has already started this program by bulldozing 10,000 vacant homes.

/s

Dasher on July 15, 2010 at 9:40 AM

Easy: The Clenis hungers for the opportunity to show the Democraps that Obama is a dope and a phony, and nothing will do that faster than Uncle Bill coming into the White House and making a few deft changes to their Destroy America plan and improving things quickly.

A trained chimp could do a better job on the economy than these Bolshevik a$$holes, and The Clenis will prove that.

Jaibones on July 15, 2010 at 9:40 AM

I couldn’t sell my house anyway, the barbed wire and minefields which surround it, not to mention the purple shag carpet in the family room, would scare away most potential buyers.

Bishop on July 15, 2010 at 9:42 AM

I didn’t want to be a fear-monger, but I’m at the point where I believe 9/10′s of all of this is planned. It looks like every successful business and region of the country is being targeted: automotive, banking, oil/gas, coal, real estate, etc. Last year the Huntsville, Madison (AL) communities were listed as top spots in the USA by Fortune and other magazines. Now with the cancellation of Constellation and NASA uncertainty, you can smell the fear. There are six houses for sale in our small subdivision and I doubt they will sell this summer. For someone intent on expanding government, why destroy the space program? Almost makes you think that the real intent is to destroy America and its exceptionalism.

texabama on July 15, 2010 at 9:44 AM

Cindy Munford on July 15, 2010 at 9:33 AM

It’s a simple cahslow problem really and as far as an investor is concerned low interest rates are good. WLow interest = less exense = more positive cash flow.

But if you’re buying a house to live in, super low interest rates should keep you out of the market since it indicates oncoming deflation for the assets. A house at $100K with 4% interest today will sell for $80K at 6% interest tomorrow. The cost will be the same over the life of a mortgage.

But actually buying for $80K @6% is better because you can always refinance is rates go back to 4%. And if rates go back to 4%, the price goes back to $100K.

This is just a basic example. But in general home prices do not appreciate over the long term relative to interest rates. The total cost paid over the life of a mortgage stays constant with inflation.

Of course there are short term exceptions like the 2002-2006 bubble. But as all other things economics, in the long run prices come back to where they’re supposed to be.

angryed on July 15, 2010 at 9:46 AM

… and the tax payer keeps sending money to Fannie Mae and Freddie Mac

J_Crater on July 15, 2010 at 9:49 AM

Did he really say that? And he meant it as a positive?

Doughboy on July 15, 2010 at 9:38 AM

Those were his words DB. My guess is this may be a pathetic strategy for those “phony bluedogs” who will distance themselves from Obama in hopes of maintaining their moderate base—good luck with that.

Rovin on July 15, 2010 at 9:50 AM

Shockingly the morons who bought McMansions they couldn’t afford continue to not be able to afford those McMansions..

Apparently, foreclosures are 1 in every 2 houses for those more than $1 million.

Illinidiva on July 15, 2010 at 9:50 AM

Summer is always peak home sale season.

Given that fact, imagine how much worse sales and foreclosures will be when school starts this fall and then winter.

It costs MONEY to move. When you’re unemployed, there’s no money to move where the mirage of jobs supposedly are.

Really wanna job? Explain it in another language, the native tongue of today’s employers abroad.

maverick muse on July 15, 2010 at 9:53 AM

SMART Power!!!!11111111111111111111!!!!!!!!!!!11eleventy

jukin on July 15, 2010 at 9:55 AM

Really wanna job? Explain it in another language, the native tongue of today’s employers abroad.

AND WE HAVE REPUBLICANS TO THANK FOR THAT, particularly NIXON designating China as our most favored trading partner and subsequent Republicans allowing imbalances between ourselves and Japan/China, as much as we have Democrats to thank for outsourcing what government tax funds yet remain today directed for the benefit of our enemies.

Russia gets the international space station that WE PAID FOR AND BUILT! That was a cooperative effort that the US FUNDED, pathetically trying to buy some Russian love. Radical Islam gets what’s left of NASA’s research operations, formerly used by our military to keep us on top. Our new Air Force fleet is a cooperative effort with the EU, NATO so that no one has anything better than anyone else can afford. No one, that is, except what Russia, Red China, Iran and oil rich Arabian and South American nations can afford to build and trade for oil and natural resources of mineral deposits necessary for nuclear weaponry.

maverick muse on July 15, 2010 at 10:04 AM

Send Fanny Mae and Freddy Mac to GITMO.

maverick muse on July 15, 2010 at 10:06 AM

Hey, tents were good enough for Obama’s arab ancestors, weren’t they?

notagool on July 15, 2010 at 10:08 AM

jukin on July 15, 2010 at 9:55 AM

Did you hear the Coast to Coast guest talking about the scientific resonant ratio in the universe of 1.1111111111111… ?

maverick muse on July 15, 2010 at 10:08 AM

notagool on July 15, 2010 at 10:08 AM

Potus Malleable Obama bragged that his daddy herded goats to get the idiotic bleeding heart liberal vote.

maverick muse on July 15, 2010 at 10:10 AM

Nothing a few trillion dollars can’t fix.

mankai on July 15, 2010 at 10:11 AM

Don’t mean to step on all your posts, jeff, but you made me think about Ogabe and his penchant for stealing land from white landowners and giving it to the “rightful owners”. Is it just too damned paranoid to think this could happen here?

Extrafishy on July 15, 2010 at 9:34 AM

Not beyond the realm of possibility. If he were the President of some Turd-World nation, I could easily see him becoming another Mugabe.

Dark-Star on July 15, 2010 at 10:12 AM

But JP Morgan Chase profit jumps 76% so Jamie Dimon isn’t making loans? What is the relationship between Quicken Loans and JP Morgan Chase?

I thought that was the plan to get the toxic assets off the books – by refinance underwater mortgages, and helping people keep from getting foreclosed on?

What’s the whole point of TARP?

Dr Evil on July 15, 2010 at 10:23 AM

So JP Morgan Chase sends people – customers, to Quicken Loans for refinancing – so does JP Morgan Chase own Quicken Loans?

Dr Evil on July 15, 2010 at 10:26 AM


At a small business in Chesapeake, Maryland President Obama today said that the 5.7% jump in GDP last quarter “affirms” the progress in the economy.


“Today, we’ve stopped the flood of job losses. We’ve stabilized the financial system. And we can safely say that we’ve avoided that looming depression,” the president said of the GDP numbers, “we received a report that affirms our progress and the swift and aggressive actions that made it possible.”


Obama,Jan 30,2010

“Make no mistake, we are headed in the right direction,” Obama said before boarding Air Force One en route to Sen. Robert Byrd’s funeral in West Virginia.


Obama July 1,2010

….If we had a credible press core and liberals were anywhere near as smart as they are constantly claiming to be…this clown would never be in a position of leadership in this country.

Baxter Greene on July 15, 2010 at 10:27 AM

UNEXPECTED!
BUSH!
RACISTS!
PALIN!

SDarchitect on July 15, 2010 at 10:28 AM

“Although we are gratified to see consumer-lending net charge-offs and delinquencies decline, they remain at extremely high levels and therefore returns in our consumer-lending businesses are still unacceptable,” said Chairman and Chief Executive Jamie Dimon.”

Fox Business News Link.

Isn’t that what the President wants – Banks making more loans -refinancing people so they don’t get foreclosed on.

Is Quicken Loans like a sub contractor for JP Morgan Chase, it keeps Chase books looking good because they send all the refinancing mortgage business to Quicken Loans?

Murky

Dr Evil on July 15, 2010 at 10:32 AM

Jebus…… EVERY DAY….. mores results of INCOMPETENCE.

Ya gotta seriously consider this Government is doing everything intentionally.

They can’t possibly be this pathetic

roflmao

donabernathy on July 15, 2010 at 10:41 AM

JP Morgan Chase bought out Washington Mutual and all their bad loans.

Dr Evil on July 15, 2010 at 10:44 AM

There is no end in sight, at least not for 3-4 years, and that might as well be a lifetime.

Skandia Recluse on July 15, 2010 at 8:55 AM

Unfortunately the light at the end of the tunnel they keep talking about is the train bearing down on them.

chemman on July 15, 2010 at 10:46 AM

Huh Quicken Loans headquarters is in Detroit, Michigan – Michigan has the distinction of having the highest unemployment in the country. The President is visiting there today to unveil some kind of battery factory to tout, I guess Green Jobs/Energy initiative. I was watching Fox News report, and they didn’t state how many “jobs” this battery factory in one city was going to create.

Dr Evil on July 15, 2010 at 10:49 AM

Maybe the idiot developers in my area will get a clue and stop building their crappy developments on beautiful farmland and wait 20 years so their handy work of the last 15 years can actually become occupied.

rickyricardo on July 15, 2010 at 10:56 AM

Maybe the idiot developers in my area will get a clue and stop building their crappy developments on beautiful farmland and wait 20 years so their handy work of the last 15 years can actually become occupied.

rickyricardo on July 15, 2010 at 10:56 AM

Not a fan of tacky McMansions I see… Same here.

Illinidiva on July 15, 2010 at 10:59 AM

This SHALL BE “Recovery Summer”! The Chosen One has decreed it! The MSM SHALL promote it! All else is heresy!

GarandFan on July 15, 2010 at 10:59 AM

“The Securities and Exchange Commission (SEC) recently took a much needed step towards improving the transparency of bank balance sheets, particularly when it comes to the adequacy of reserves for mortgage repurchase obligations stemming from banks’ violations of representations and warranties.”

I get what the SEC is about, they want more transparency and less opaqueness – murkiness.

Dr Evil on July 15, 2010 at 11:01 AM

Extrafishy on July 15, 2010 at 9:34 AM

That would work in the cities and burbs but it would make for a lot of fertilizer in the rural areas of the country.

chemman on July 15, 2010 at 11:08 AM

Dr. Evil,

I don’t know what your beef is with Quicken Loans, but it is not owned by JPMorganChase, it is owned by a company named Rock Financial which is based in Michigan. It may be selling all or most of its loans to Chase, but that is the extent of the relationship. It is a non-bank, and is going to get hammered by FinReg when it takes effect. This Congress is intent on running the non-bank mortgage lenders out of business. It wants everything run through the banks because they are easier to control and squeeze campaign contributions out of.

rockmom on July 15, 2010 at 11:08 AM

The only things he’s trying to recover in this “Recovery Summer” are his flailing poll numbers.

mrt721 on July 15, 2010 at 11:25 AM

More on the way; the commercial real estate crash is still in the works, forecast for next year. Let’s also remember Fannie and Freddie haven’t been fixed yet, and won’t be as long as the democratics can filibuster in the Senate.

slickwillie2001 on July 15, 2010 at 11:30 AM

rockmom on July 15, 2010 at 11:08 AM

I don’t have any problem with Quicken Loans. JP Morgan Chase is referring people to Quicken Loans, then turn around and buy the loans. Is it because of “volume” of the refinancing or is it because Quicken Loan’s can meet the SEC’s “reserve” securities requirement.

Dr Evil on July 15, 2010 at 11:33 AM

Endless Bummer? Love the BB reference.

Maybe Obama just wasn’t made for these times…

Tongueboy on July 15, 2010 at 11:43 AM

Maybe the idiot developers in my area will get a clue and stop building their crappy developments on beautiful farmland and wait 20 years so their handy work of the last 15 years can actually become occupied.

rickyricardo on July 15, 2010 at 10:56 AM

Agreed. I get physically ill when I’m out in the ‘cookie-cutter’ neighborhoods; most of which won’t be fit to live in after a couple decades.

There’s growth and then there’s sprawl…the latter has characterized new housing development in the US in too many places, for far too long.

Dark-Star on July 15, 2010 at 11:57 AM

I really think we won’t “right” ourselves until the foreclosures are handled, for real.

AnninCA on July 15, 2010 at 11:57 AM

angryed on July 15, 2010 at 9:46 AM

Sorry this is so late, I had an appointment. I need to sell and when I got back to Florida, all the houses in our neighborhood and close by have sold. I feel like I should jump while the iron is hot.

Cindy Munford on July 15, 2010 at 12:01 PM

More on the way; the commercial real estate crash is still in the works, forecast for next year. Let’s also remember Fannie and Freddie haven’t been fixed yet, and won’t be as long as the democratics can filibuster in the Senate.

slickwillie2001 on July 15, 2010 at 11:30 AM

Do you think this might be compounded by the automatic tax increases coming in January?

Extrafishy on July 15, 2010 at 12:13 PM

Do you think this might be compounded by the automatic tax increases coming in January?

Extrafishy on July 15, 2010 at 12:13 PM

You think? That’s going to hit everybody.

Dark-Star on July 15, 2010 at 12:18 PM

Paranoid thought …

Drive the housing market down as low as possible before year end. Grant amnesty. Start selling houses at fire sale prices to our new citizens.

BowHuntingTexas on July 15, 2010 at 12:21 PM

And don’t forget the trash that just figures out that if they stop paying, they can have more money for other things.

http://www.nytimes.com/2010/06/01/business/01nopay.html

Foreclosure has allowed them to stabilize the family business. Go to Outback occasionally for a steak. Take their gas-guzzling airboat out for the weekend. Visit the Hard Rock Casino.

MNHawk on July 15, 2010 at 12:22 PM

Start selling houses at fire sale prices to our new citizens.

BowHuntingTexas on July 15, 2010 at 12:21 PM

The only part I have a problem with…because I think he’d just like to stage a big showy giveaway.

Dark-Star on July 15, 2010 at 12:28 PM

A 13 year low….

That’s 156 MONTHS…. sure sounds worse when you say it like that….

originalpechanga on July 15, 2010 at 12:36 PM

The “summer of recovery”?
Is “Gore-bull warming” to blame for the economy?

The Liberal Cure:

Why, we just need to spend more money we don’t have, on things we don’t make, paid for with money we owe, to countries we don’t like and also hate us, with jobs we lost, with supplimented income by gov’t funds we don’t have.

Obowmanomics: the gift that keeps on taking.

dthorny on July 15, 2010 at 12:39 PM

Man, if I read one more economy-related article from supposedly reputable sources that casually mention “the economic recovery” I’ll, well, I’ll be really upset. “-)

Dr. ZhivBlago on July 15, 2010 at 1:27 PM

I don’t have any problem with Quicken Loans. JP Morgan Chase is referring people to Quicken Loans, then turn around and buy the loans. Is it because of “volume” of the refinancing or is it because Quicken Loan’s can meet the SEC’s “reserve” securities requirement.

Dr Evil on July 15, 2010 at 11:33 AM

Just a guess, but Chase conspicuously exited the wholesale lending market in 2008, partly to curry favor in Washington. But as their competitors like Wells and B of A got bigger they couldn’t keep up with just the volume of loans they could sell in their retail bank branches. This is a way for them to ramp up their volume cheaply without going back to those “evil” mortgage brokers for loans.

rockmom on July 15, 2010 at 2:24 PM

Jobs are key to everything.

Because of my long-term unemployment during the dotcom era, using up every dime we had saved, we ended up declaring bankruptcy 5 years ago. Fortunately, I had just found a job, paying half what I used to make, so that we could do Chapter 13 and keep our house.

This week, we made the final payment. I can’t tell you what a relief it is to be through this. Since then, I’ve moved into higher paying jobs and have now been back at my previous salary since December.

We’re still left with no savings, but are gradually coming out of the darkness. We’ll now have $600/month extra now that the bankruptcy payments are done as well as an unexpected surprise, also this week.

In our attempt, before my unemployment, to pay off all of our debt, we obtained a 7-year ARM, figuring that we would just refinance in 7 years after all of our other debt was paid off. Best laid plans and all that. I was really sweating it that the ARM was up this summer right when we were coming out of bankruptcy, how would we ever refinance? Well, our mortgage adjusted this month for the first time, DOWN to 3.375%!! That will save us an additional $200/month and won’t readjust for another year. Since it doesn’t look like interest rates will go up much in the next few years, God willing, we’ll get to enjoy low rates while trying to build savings.

It was a really well-timed silver lining.

We’re now going to focus on building savings and paying off the house, no more credit of any kind for us, cash only. You just never know when the rug will be pulled out from under you.

Common Sense on July 15, 2010 at 3:54 PM