Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Las Vegas Bubble Bursting-- Reposessions Up 99%

Recommended Posts

The decline and fall of the great Las Vegas housing bubble and the certainty of losing when you buy low but fail to sell high (or quit while you are ahead), a lesson for TTRTR in the era when its TTRTRates:

http://uk.us.biz.yahoo.com/prnews/060418/sftu120.html?.v=43

Press Release Source: American Mortgage Educators
'Las Vegas Homeowners Fight Back'
Tuesday April 18, 8:58 pm ET
LAS VEGAS, April 18 /PRNewswire/ -- The threat of a HOUSING MARKET CRASH in Las Vegas is so real that on March 23, 2006, over 30 people gathered to discuss how they could help avert this crisis. Present at the gathering were insurance agents, a chef, a former U.S. Attorney, parents, realtors, loan officers, escrow agents and other Las Vegas residents. The host of the gathering, Rob Rozzen, owner of Sin City Sweets and one of Nevada's top realtors, said,
"We have a moral responsibility to tell homeowners the TRUTH about this impending crisis."
The consensus among the attendees was to educate Las Vegas residents.
According to the latest FDIC findings,
61.3% of Nevadans have an exotic mortgage that will put them at risk of foreclosure in the event of a housing market crash
.
Channel 8 KLAS CBS affiliate reported Friday April 14, 2006 that
foreclosures are up 99% from January to February 2006.

Shows you that even a crash scenario can be a nice earner if you are in the right racket at the right time!

Share this post


Link to post
Share on other sites

Channel 8 KLAS CBS affiliate reported Friday April 14, 2006 that foreclosures are up 99% from January to February 2006.[/indent]

Shows you that even a crash scenario can be a nice earner if you are in the right racket at the right time!

Quoting a 99% increase is meaningless as it could simply be an increase from 1 to 2.

Think it is time you got a proper job and not spend all day scouring the web for stories with references to property which suit your theory/wishes.

Share this post


Link to post
Share on other sites

Quoting a 99% increase is meaningless as it could simply be an increase from 1 to 2.

Think it is time you got a proper job and not spend all day scouring the web for stories with references to property which suit your theory/wishes.

These kinds of news stories are scary for the bulls, I know. But what are the bears to do? Just post VI articles? Forums are for both sides of the argument, JIYDK.

Share this post


Link to post
Share on other sites

Quoting a 99% increase is meaningless as it could simply be an increase from 1 to 2.

Think it is time you got a proper job and not spend all day scouring the web for stories with references to property which suit your theory/wishes.

Vegas was at the forefront of the US housing Bubble and is probably at the front of the burst.

As for meaningless it depends on the size of the survey. If I said that in a tiny hamlet of 200 houses there was a rise of 100% yes its meaningless.

However in a town of at least 176750 homes a 100% increase in a single month is a meanful statistic simply because of the size of the sample (oh and the size of the last set of published figures for Q4 2005).

Share this post


Link to post
Share on other sites

Quoting a 99% increase is meaningless as it could simply be an increase from 1 to 2.

Think it is time you got a proper job and not spend all day scouring the web for stories with references to property which suit your theory/wishes.

Er no. Your grasp of maths is poor. An increase from 1 to 2 is a 100% increase.

Think about it.

Share this post


Link to post
Share on other sites

Er no. Your grasp of maths is poor. An increase from 1 to 2 is a 100% increase.

Think about it.

But you are not going to repo 0.99 of a property so I am not going to say increase from 1 to 1.99 is 99%.

Without knowing the base number quoting %'s is pointless irrespective of how high the % is.

Share this post


Link to post
Share on other sites

But you are not going to repo 0.99 of a property so I am not going to say increase from 1 to 1.99 is 99%.

Without knowing the base number quoting %'s is pointless irrespective of how high the % is.

I think a 99% increase must mean there were at least 100 properties involved.

Share this post


Link to post
Share on other sites

I think a 99% increase must mean there were at least 100 properties involved.

You can interpret the 99% whichever way you like, even 100 is actually meaningless as it doesn't show what number this is derived from.

I would never assume if someone quotes 99% or similar that this means the base figure is at least 100.

Share this post


Link to post
Share on other sites

I was intruiged by the term "exotic mortgages". Can anyone enlighten me as to what they might be? Are they dodgy in some way?

Share this post


Link to post
Share on other sites

I was intruiged by the term "exotic mortgages". Can anyone enlighten me as to what they might be? Are they dodgy in some way?

Mainly IO (interest only). Some might have other forms of dodginess such as early baloon payment or massive surrender charges.

Bottom line: they are the kinds of loans that only people who cannot afford to buy the homes with conventional 15 to 30 years fixed rate financing are using. The problme is that are are more expensive than conventional financing after the intro period comes to an end. This is why so many are being repossessed.

I think we have much the same problem in the UK.

Edited by Realistbear

Share this post


Link to post
Share on other sites

Mainly IO (interest only). Some might have other forms of dodginess such as early baloon payment or massive surrender charges.

Bottom line: they are the kinds of loans that only people who cannot afford to buy the homes with conventional 15 to 30 years fixed rate financing are using. The problme is that are are more expensive than conventional financing after the intro period comes to an end. This is why so many are being repossessed.

I think we have much the same problem in the UK.

I'm sure we do. Many thanks for the explanation. Exotic mortgage - what a great name for them though.

Share this post


Link to post
Share on other sites

I'm sure we do. Many thanks for the explanation. Exotic mortgage - what a great name for them though.

Actually exotic mortgages in the States can be exotic. One example where the initial payment is kept low by adding some of the interest to the borrowed amount for the 1st two years (i.e. you pay only $1000 of the $1500 monthly interest charge with the other $500 added to the debt).

http://another******edborrower.blogspot.com/...or-surreal.html has some examples about it.

Share this post


Link to post
Share on other sites

But you are not going to repo 0.99 of a property so I am not going to say increase from 1 to 1.99 is 99%.

Without knowing the base number quoting %'s is pointless irrespective of how high the % is.

Oh get back to work. Haven't you got some SOLD signs to put up ransomly? And I might point out this site is called HousePriceCrash - posting articles about Housepricecrashes is sort of the point.

Hey - why not keep posting on this site? It's great fun and you'll make loads of friends!

Share this post


Link to post
Share on other sites

Oh get back to work. Haven't you got some SOLD signs to put up ransomly? And I might point out this site is called HousePriceCrash - posting articles about Housepricecrashes is sort of the point.

Hey - why not keep posting on this site? It's great fun and you'll make loads of friends!

Not an estate agent.

I am interested in the various opinions about the property market but posting misleading or inaccurate information is daft and does not achieve anything and hugely devalues this site.

Share this post


Link to post
Share on other sites

You can interpret the 99% whichever way you like

I would never assume if someone quotes 99% or similar that this means the base figure is at least 100.

No, it means that the previous figure must have been at least 67 (and since risen to 133).

Share this post


Link to post
Share on other sites

61.3% of Nevadans have an exotic mortgage that will put them at risk of foreclosure in the event of a housing market crash.

Channel 8 KLAS CBS affiliate reported Friday April 14, 2006 that foreclosures are up 99% from January to February 2006.[/indent]

Shows you that even a crash scenario can be a nice earner if you are in the right racket at the right time!

These 'exotic' type mortgages are probably variations of ARM's or Adjustable Rate Mortgages... which is the majority of the market over here.

ARM's in the US are used to cover a proportion of the mortgage which is not available to the buyer - essentially a second mortgage on a section of the property i.e. 20%.

A typical case in point would be a new buyer in the 100% mortgage or 0% down brigade who has taken out a mortgage with an ARM element... often is something like an 80/20 split between the two.

So 80% is the typical US long term 25/30 year flat rate mortgage and the other 20% is a higher charge IR ARM which is substantially more susceptable to Fed base rate changes.

Bascially this articale is saying that the US market in LV is in trouble partly because people have adopted a UK style approach to their mortgages and that the short term fixed periods are coming to an end... much the same as over here.

The bubble in the US is currently slowly deflatingin some regions... it might just go POP!

- Pye (Property Specualtion Ninja :ph34r: )

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.