Do any of you know or are friends with any bank officers willing to do a real estate refinance in this market? I'm getting turned down all over town. We have good loan to value, 86 units / two buildings in East Dallas, around 2.85m appraised value, looking for an 800k refi + 100k for some additional renovation and working capital. I have loan packages prepared. I'll buy a steak dinner and one motorcycle item of up to $300 if I close a deal with your contact. PM me if you have any leads. Serious replies please. [thumbsup]
Jacob
You have a PM.
Jweave, PM replied to and thank you.
Fastwin, I appreciate the kind words. I'm trying to put the feelers out there and I imagine we'll figure out a solution eventually. I have approximately 7 months left.... not the best scenario, but this market is killing me.
Quote from: fastwin on October 19, 2009, 04:22:48 PM...now that the residential foreclosures are settling out...[thumbsup]
Not exactly.
Banks are not going any farther than issuing a NOD (Notice Of Default).
They are not pursuing forclosures ...this keeps the true market value of the properties off the books.
If the true values of the non-performing loans were on the books -everyone would know they ALL are insolvent.
This is all part of the "extend-and-pretend" mantra they are following.
The biggest wave of residential property forclosures have yet to hit.
Commercial property is just warming up.
And there are other things cooking not mentioned here.
We are fooked.
Prep accordingly.
printing this much money will mean the only way to get it out of circulation is to raise rates thus shortening/attempting to pull money out of supply. get that loan now because at the pace we are going things are going to get uglier if something doesn't get done. maybe break it up into two institutions to compete for the money. my first stop would be a credit union, one of the few still making money and lending. hurry, the worst is not over and good luck.
send me a pm with your info and I'll call someone at Wells that might be able to help.
Quote from: muskrat on October 29, 2009, 06:39:01 AM
printing this much money will mean the only way to get it out of circulation is to raise rates...
Gee, that won't do much for the (alarmingly!) high delinquency rates for Option ARMs...
50% of them are delinquent! QuoteOctober 29th, 2009 8:18 am | by John Jansen |
This was in a morning note from AAron Kohli of RBS and I thought it worthy of reproduction here. I can not reproduce the chart he referenced. I also visited the Saint Louis Fed website and could notlocate more detail.
“Turning now to an announcement that caught our eye yesterday, the St. Louis Fed stated that they were concerned about Option Arm and Alt-A loan delinquency rates. I am too. Attached is a chart of delinquencies in the Option ARM universe. The key takeaway from this chart is that low rates have allowed some borrowers in this type of loan to make the minimum payment and still cover at least a part of their principal or delay the time till they reach their negative amortization cap. Despite that fact, delinquencies have moved steadily higher with the 30 day + delinquency now reaching close to 50% of all outstanding Option Arms. If our economists are right about the size and timing of the Fed Funds rate hike (approx. 1% per quarter starting in Q2 next year), the impact on borrowers of these types of loans could be very significant. Those who are slightly delinquent or barely holding on could see their payments move substantially higher with the impact possible late next year.â€
That's a quote from the Federal Reserve Bank of St. Louie! -Hardly "settling out". Hell, The tailspin is just getting going!!! [puke]
Link HERE: http://acrossthecurve.com/?p=9779 (http://acrossthecurve.com/?p=9779)
Delinquencies Rise Further In Fannie's Portfolio In August
Last update: 10/30/2009 4:19:36 PM
DOW JONES NEWSWIRES
Fannie Mae (FNM) said delinquencies in its mortgage portfolio continued to rise, showing a potential plateau in the woes has yet to arrive.
It and smaller sibling Freddie Mac (FRE) were put into conservatorship a year ago by the federal government amid fears of mounting losses at the companies.
Fannie said Friday that August serious delinquencies, or those at least 90 days behind, rose to 4.45% on single-family homes from 4.17% in July and 1.57% a year earlier. Fannie's delinquencies have been worse than Freddie's.
The report also showed that Fannie's mortgage portfolio grew 1.7% in September to $792.68 billion, or a 22% annual rate. Its book of business, which includes mortgage-backed securities and other guarantees, rose $13.6 billion to $3.24 trillion. Its annualized growth rate was 5.2% for the month.
In addition, Fannie's net commitments to purchase mortgages more than doubled in September to $69.67 billion after August's 69% month-on-month tumble. Fannie and Freddie are key mortgage financiers.
Fannie shares closed Friday at $1.08. The stock is up 42% this year.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com
(END) Dow Jones Newswires
October 30, 2009 16:19 ET (20:19 GMT)
9 November 2009
NEW YORK (Reuters) - Fannie Mae (FNM.N), shrunk its gross mortgage portfolio by an annual rate of about 28 percent in October and delinquencies on loans it guarantees rose sharply in September, the largest U.S. home funding company said on Tuesday.
The key in the story is that the single-family "serious" delinquency rate (that is, 90+ days behind - in the "forget it, they're hosed" bucket) is now 4.72% of the entire portfolio, where a year ago it was 1.72%.
That's 275% of the previous rate.
Where's the MBS portfolio going? Fannie isn't running it down, you know.
I have often commented that we're nowhere near done with the mortgage explosions, and that where subprime was bad, those loans made in 2005-2007 to people who lied about their incomes - which is 90% of those who took out "ALT-A" loans - were going to be a catastrophe.
Check out this little clip from 60 Mnutes last week.
It'll give you a warm IZ_ feeling. ;D
The Housing Collapse of 2010 Will Be Worse Than 2008 (http://www.youtube.com/watch?v=kunB4SnAh4g#normal)
[popcorn]
Wow, Rich, that is deep. Unfortunately I missed that one. (read Cowflops game) I usually watch the show.
This is most alarming about the market. Having bought my home over 11 years ago I'm not in bad shape but to the those who are in the market now may be in for some tough times. Home prices should have never gotten this high. In 1986 after the S & L failures the U. S. should have learned it's lessons then but didn't and just forged ahead with out of control high interest loans. People thought they could afford it. Home prices went up enourmously over a short period of time. After a point was reached where no one was buying the interest rates went down because pricing was going up. That made it appealing to most new buyers. That is when the real mishap started. The early '90's were a heyday for those wanting a bigger new house and the Mercedes in the drive on a clerks salary. The ball had to stop somewhere. Now we see it. Not that I'm an analyst but experience has shown me a few things. I believe we'll see something similar to the days when interest rates will soar above mid-teens again. Those interest rates will be a controlling factor for years to come. Lenders will not have much choice. The bailout regs will now get much stiffer for money to go out. They need money to come in so the foreclosures and firesales will increase due to negative cashflow in the mortgage banking arena. If one has some money to put back and hold onto they may make out like pirates on a raid in a few years. Thanks Rich, good stuff.
(http://www.dailyreckoning.com.au/images/dr_20091222A.jpg)
PRIME loans are the GOOD (best rated ones)...
Do you wonder how the "bad" are doing? [evil]
QuoteThe performance of US prime jumbo loan performance within residential mortgage-backed securities (RMBS) slipped again in January as serious delinquencies (60+ days past due) rose for the 32nd consecutive month and edged closer to 10%, according to the latest market commentary from Fitch Ratings.
Prime jumbo loan delinquencies began to rise in Q207 but accelerated since then. In 2009, the rate of delinquency nearly tripled during the year. The serious delinquencies rose to 9.6% in January from 9.2% in December.
“The new year has brought no relief from declining jumbo loan performance,†said Fitch managing director Vincent Barberio. “The trend line for delinquencies indicates the 10% level could be reached as early as next month.â€
A jumbo mortgage has an initial principal amount above the $417,000 conventional loan limit set by Fannie Mae (FNM: 0.98 +1.03%) and Freddie Mac (FRE: 1.16 0.00%). In higher-priced markets the limit is $729,750, and, in October, appropriations committees in both the House and Senate proposed an extension of the limit through 2010.
Fitch indicated delinquency rates on pre-2005 prime jumbo RMBS vintages are still lower than recent vintages. But seasoned RMBS pools have deteriorated over the last year, rising to 4.3% in serious delinquency from 1.8%. Of all prime jumbo senior RMBS classes issued before 2005, about 40% are under a negative rating outlook due to weak collateral performance, despite only 5% having experienced downgrades so far.
The roll rate of prime jumbo borrowers that fell into delinquency declined slightly to 1.2% for January from the seasonal high of 1.3% in December, Fitch said.
California spearheaded the rising delinquencies, jumping to 11.3% in January from 10.8% a month earlier. The state represents 44% of the $381bn prime jumbo RMBS market.
Four other states rounded out the top five in terms of highest volume of prime jumbo loans outstanding. New York, which represents 7% of the market, saw delinquencies rise to 6.1% from 5.8% the month before. Florida, representing 6% of the market, rose to 16.6% delinquent, from 16%. Virginia, representing 5% of the market, jumped to 5.6% delinquent from 5.4%. And New Jersey, representing 4% of the market, grew to 7.4% delinquent, from 7.1%.
http://www.housingwire.com/2010/02/08/fitch-says-prime-jumbo-rmbs-near-10-delinquent/ (http://www.housingwire.com/2010/02/08/fitch-says-prime-jumbo-rmbs-near-10-delinquent/)
<edited> ...added minor emphasis. ;D
commercial real estate is about to go bust.
Quote from: muskrat on February 08, 2010, 06:43:21 PM
commercial real estate is about to go bust.
Tick-Tick-Tick-Tick... [evil]
Quote from: RichD on February 09, 2010, 03:37:17 AM
Tick-Tick-Tick-Tick... [evil]
You sound like 60 Minutes. ;D
http://www.dallasnews.com/sharedcontent/dws/bus/stories/032310dnbuscommercial.3b4450f.html (http://www.dallasnews.com/sharedcontent/dws/bus/stories/032310dnbuscommercial.3b4450f.html)
Dallas-Fort Worth commercial foreclosure filings top $1 billion
08:02 AM CDT on Tuesday, March 23, 2010
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
Commercial property foreclosure filings in the Dallas-Fort Worth area top $1 billion for the upcoming April sales.
That's much higher than commercial foreclosure posting totals in recent months.
"It's certainly the highest we've seen in this cycle," George Roddy of Foreclosure Listing Service said Monday.
The Addison-based foreclosure-tracking firm counts 333 D-FW commercial properties scheduled for auction by lenders next month.
During the last few months, the auction totals have averaged about 250.
Among the properties set for sale next month are the Element Hotel in Irving, with $13.1 million in debt, and the Firewheel Distribution Center in Garland, with $13.1 million in debt, according to Foreclosure Listing Service.
Part of Allen's Star Creek development on State Highway 121, with about $15 million in debt, also made the April foreclosure list.
The biggest current foreclosure posting is still the Four Seasons Resort and Club at Las Colinas, with $183 million.
Although the 400-acre resort has been facing auction for several months, owner BentleyForbes and its lenders have reached a "standstill agreement" while debt negotiations continue.
BentleyForbes officials said earlier this month that they "expect that a resolution will be reached in the near future."
But it's not unusual for a mortgage holder to continue posting a property for foreclosure while talks go on.
Not all properties listed for foreclosure each month are actually sold by the lender. Many times, the borrower reaches a new mortgage agreement or delays the forced sale.
In 2009, the number of commercial properties posted for foreclosure in Dallas-Fort Worth jumped almost 27 percent. More than 2,400 properties, including offices, warehouses, shopping centers, hotels, apartments and commercial land, were posted for foreclosure last year.
It's no wonder that Dallas-Fort Worth's commercial property foreclosures are spiking.
A new report by First American CoreLogic says that D-FW led the nation in commercial mortgage maturities in February. More than $4 billion of about $20 billion in U.S. commercial property loans that came due in February were on properties in North Texas, the researchers found.
The Houston area was second, with almost $3 billion in maturing commercial mortgages.
With lenders still keeping a tight rein on real estate debt, it's often impossible for borrowers to extend or refinance commercial property loans.
Is it just me, or does anyone else think bankers are some of the stupidest people around? "Hey, everybody else is making these wacky loans... let's get some." (BIG BURN) "Hey, nobody else is making any loans - even though we can borrow the money to re-lend for practically nothing - we better not make any loans either."
Sure seems to me that the banks are the major contributors to the current RE conditions & foreclosures... if nobody is lending, everybody falls into default...and with so many defaults, we can't be taking chances like that. Isn't that EXACTLY what they did during the Great Depression... until they figured out they really didn't want to OWN all those homes? That being patient and working with their customers paid bigger dividends than taking houses they couldn't sell away from decent people?
Should be a great time for bankers to build long-term relationships and knock their competition in the creek by making reasonable loans.
Rant over.
George
money makes people stupid.
[popcorn] I wonder if the locally owned banks (like Beal Bank) are any different on their lending practices or is the stupidity limited to major lending firms who got the TARP money?
I've heard economists say that it's best to leave the big banks and put your money into home-town banks for several reasons. The rates are better. The fees are cheaper. You establish a relationship with someone you can actually have a relationship with. Your money is circulated locally not nationally.
look at Frost Bank. They are the only TEXAS chartered bank that's survived the 1800's and 1900's. Just saying they have a stellar reputation.
Quote from: muskrat on March 24, 2010, 11:34:25 AM
money makes people stupid.
Gotta disagree with ya hoss... I know lotsa stupid people with no money :o
Quote from: Duc L'Smart on March 25, 2010, 10:09:40 AM
Gotta disagree with ya hoss... I know lotsa stupid people with no money :o
True that.
If you gave everyone in the USSA (we are socialist now you know) a million bucks...
in a year the poor would be poor again.
They are where they are on the socioeconomic scale with good reason.
(it should be said accidents do occur on both ends of the spectrum)
I stand by my statement! We now need "selective" breeding programs to clean up the gene pool too. [evil]
Quote from: muskrat on March 25, 2010, 03:19:13 PM
I stand by my statement! We now need "selective" breeding programs to clean up the gene pool too. [evil]
Not really. Sombody has to pump the gas.
The problem starts when people confuse being born with equal rights to achieve or fail in life
and being born means I get all of your shit I want -because I want. I say so. That's my right.
Well yeah. You've got some nice shit.
Quote from: RichD on March 26, 2010, 03:59:34 AM
Not really. Sombody has to pump the gas.
The problem starts when people confuse being born with equal rights to achieve or fail in life
and being born means I get all of your shit I want -because I want. I say so. That's my right.
Stop Entitlement Programs!!.
[clap]
Well I haven't scored a mortgage yet, as we're not quite strong enough financially, but looks like I have an offer sheet for another 2 years to finish up my work. I should be strong enough by next year to roll into an amortized deal. Nothing is done yet, but thumbs up for an option and keeping my properties.
good luck to you.
US Economy So Healthy One In Ten Mortgages Delinquent (New Record), One In Twenty In Foreclosure
QuoteFrom Goldman's Sachs Jan Hatzius.
Delinquencies and Foreclosures Rise Again
Data just released by the Mortgage Bankers' Assn show that more than one-tenth of all US mortgages are delinquent, a new record high. Homes in foreclosure edge up slightly as well. One caveat: the increases are driven by seasonal adjustment, which should probably be taken with a grain of salt given the huge shifts in this sector over the past few years.
Mortgage delinquencies: 10.06% in Q1 (Q4: 9.47%).
Mortgages in foreclosure: 4.63% in Q1 (Q4: 4.58%).
KEY POINTS:
1. The Mortgage Bankers' Assn Q1 report shows a further rise in delinquent mortgages, even in the 30-60 day range, somewhat surprising given the improvement in the economy and labor market in recent months. The increases are spread among both fixed and adjustable-rate mortgages, both prime and subprime; only FHA mortgages saw a lower delinquency rate than the prior quarter. One issue here is that the delinquency figures incorporate a positive seasonal adjustment, which should probably be taken with a grain of salt given the seismic shifts in this sector over the past few years (in fact, the MBA itself notes this issue; see http://www.mbaa.org/NewsandMedia/PressCenter/72906.htm (http://www.mbaa.org/NewsandMedia/PressCenter/72906.htm)). Before seasonal adjustment, the figures generally show improvement.
2. New foreclosures continue at a substantial rate of 1.23%, the 9th consecutive quarter where at least 1% of mortgages went into foreclosure. The total inventory of foreclosures (non-seasonally adjusted) rose to 4.63% of the stock of housing in the MBA's survey (just over 2 million homes in foreclosure).[/quote]
Commercial foreclosures in Tarrant County double in first half of 2010
http://www.star-telegram.com/2010/05/20/2205793/commercial-foreclosures-in-tarrant.html (http://www.star-telegram.com/2010/05/20/2205793/commercial-foreclosures-in-tarrant.html)
The number of foreclosure postings on commercial properties in Tarrant County nearly doubled in the first half of 2010 compared with the same period a year ago, a report showed Thursday.
In all, 638 postings have been filed for auctions held from January to June. That's a 98 percent increase from the first six months of 2009, when Tarrant County postings totaled 322, the Addison-based Foreclosure Listing Service report shows. The filing deadline for the June 1 auction has passed.
Despite the “skyrocketing†numbers, the commercial foreclosure picture still isn't as bad as it was in the real estate crisis of the late 1980s, “when around 8,000 commercial postings were filed in one year†for the four-county North Texas region, said George Roddy, president of Foreclosure Listing Service.
That doesn't mean we're out of the woods, either, Roddy said. That may not happen until the first quarter of 2011.
“I don't think we're done,†he said.
Driving the posting increase is lenders who are still reluctant to free up money for buyers and investors who are still deciding the best time to jump in the market, Roddy said.
The Tarrant County increase far surpasses Dallas, Collin and Denton counties. Collin County's increase was 66 percent, followed by Dallas and Denton counties, both at 32 percent.
In the four-county region, postings for the first six months of 2010 were 1,659, a 58 percent increase from the 1,050 postings in January to June 2009. (cont.)
...just a quick bump-er-roonie to keep folks abreast of the progress in our "recovery". ;)
"New Home Sales Plummet 13% To 284,000 Annualized Rate, 19K Actual Homes Sold Lowest Monthly Ever"Quote"Sales of new single-family houses in January 2011 were at a seasonally adjusted annual rate of 284,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 12.6 percent (±11.2%) below the revised December rate of 325,000 and is 18.6 percent (±15.4%) below the January 2010 estimate of 349,000. The median sales price of new houses sold in January 2011 was $230,600; the average sales price was $260,300. The seasonally adjusted estimate of new houses for sale at the end of January was 188,000. This represents a supply of 7.9 months at the current sales rate." Less than 500 homes (Z) sold in the over $750,000. And the stunner: only 19k non-annualized homes were sold. The lowest monthly total ever. (and as JT Smith points out, of the 19K, 53% were vacant lots or under construction)...
http://www.zerohedge.com/article/new-home-sales-plummet-13-284000-annualized-rate-19k-actual-homes-sold-lowest-monthly-ever (http://www.zerohedge.com/article/new-home-sales-plummet-13-284000-annualized-rate-19k-actual-homes-sold-lowest-monthly-ever)
4.5 years, two hard money loans down, and I'm still here. The bankers that told me they would help me out with a straight refinance at the end of my current loan kept their word. I met my financial goals and they said my package looks good. I should have term options next week. Woohoo!
That's good to hear. Congratulations [thumbsup]