Sunday, November 26, 2006

New Yorkers struggling with mortgage payments

New Yorkers missing mortgage payments in increasing numbers in last quarter

In the third quarter of this year, the number of city residents who had missed more than three months of mortgage payments jumped by 20 percent compared with the same quarter a year ago. Still, New Yorkers often have more time to try to hold onto their homes than homeowners in the rest of the country.

Posted by converted lurker @ 08:08 PM (474 views)
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12 thoughts on “New Yorkers struggling with mortgage payments

  • Talk to your local court officer if you know him/her and ask them how many repo’s they are completing. Up here in the Northwest miles away from Boom Central (the SE) 5 out of 10 court proceedings are ending up in a repossession order, a couple of years ago the typical figure was 1 in 10. The obvious conclusion is that a lot of people are seriously broke and the lenders are very anxious to get their hands on the property so they can sell them quick.

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  • glorious sunshine says:

    Looks to me like a VI point of view. By that I mean it’s a HPC poster quoting a firstrung reporters web page.

    Forgive me for the obvious but, that firstrung reporter is just that, a reporter making up headlines for the majority (read naive saps) to ‘buy into’ and increase their sites hit rate. As for 5/10 cases in repossession? I am surprised it isn’t higher! Its not about court outcomes its about the % of the population that need to go to court in the first place and there are loads of BTLers gagging to snap up FTB type properties for a song…

    Dream on HPCers them prices will not fall…

    Something crossed my mind again
    You were in my eyes It was somewhere that I’ve already been
    Telling my love lies
    But I demand and you demand
    And there ain’t no mistake
    And we could take it anywhere
    But the one thing we can’t fake

    There’s just two ways to play
    Just two ways to play
    And I don’t wanna stay
    There’s just two ways to play

    And I’m gonna play it right this time

    There’s always the easy numbers
    And there’s those hard ways, too
    And there’s those cheaters among us
    It’s either one or two
    But fortune telling’s mesmerizing
    In the game of chance
    But rolling dice ain’t sympathizing
    When you play romance

    There’s just two ways to play
    Just two ways to play
    And I don’t wanna stay
    There’s just two ways to play

    I can’t control those numbers
    Can’t control your sexy ways
    I can’t control my inner thunder
    That makes me wonder round for days

    Two ways to play
    There’s just two ways to play
    There’s just two ways to play
    There’s just two ways to play
    I’m gonna play it right this time

    There’s two to play
    There’s just two ways to play
    There’s two to play
    There’s just two ways to play

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  • Glorious,

    Enough of this tit-for-tat. Feed my curiosity with some logical responses:

    *Do you disagree with the notion that economy is by its very nature cyclical?
    *Why DON’T you see it likely that history will repeat itself as it has several times before?
    *What is your alternative view on how the current house price phenomenon will pad out in the next 5 years?

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  • Why do people stop payments altogether? Surely they can still afford the rates they got when they first took out their mortgage even if that was the maximum they could. The current repossessions are sorting out the amateurs from the savvy. I don’t think it shows that everyone is very stretched as the properties repossessed will be bought up by the more savvy. What we are seeing now is the thickos and amateurs being flushed out of the market.

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  • NoHPC …I remember the last crash. Some people who were repossessed did not even know they were suppose to make repayments…incredible that may seem…so yes it is some sorting of the thickos from the savvy. But someone who is real savvy will have their emigration visa to go to Australia, take out one of these 125% mortgages that are now up for grabs, and dissapear. They can pocket the 25% and leave the banks to sell the repossession at a loss…illegal, but tempting!

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  • Just read the article properly and it’s a bit pathetic. 20 % increase is 1200 – 1400 people. Only 200 more people defaulting this year compared to last year. Hardly a significant number when you take into account the number of homeowners in new york

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  • If you lose your job you have no income so no way of paying the bills. I agree though mostly with the comments – I had trouble nearly 20 years ago, but always kept paying the mortgage – bank and council and others took me to court, and it took many years to get any credit again but I got there eventually. Also many other problems starting to hit the UK which will have an impact such as gambling addiction. Interesting time ahead, as there is no question things are going to get tough for many.

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  • If you lose your job you have no income so no way of paying the bills. I agree though mostly with the comments – I had trouble nearly 20 years ago, but always kept paying the mortgage – bank and council and others took me to court, and it took many years to get any credit again but I got there eventually. Also many other problems starting to hit the UK which will have an impact such as gambling addiction. Interesting time ahead, as there is no question things are going to get tough for many.

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  • Nohpc, I’m sure you’re right that people must surely be able to afford the rates they got when they first took out their mortgage.

    Unfortunately after 13 interest rate rises, that is not the rate they are on. Does that make it a little clearer?

    “Why do people stop payments altogether? ” because you either pay all that you owe or you get repo’d. If you’re going to get repo’d you may as well pay nothing.

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  • Dohousescrashinthewoods says:

    Thanks, Glorious, the lyrics are helpful.

    I think the anecdotals are useful, particularly when there is little [desire for] reality in media or government.

    They may not give the big picture, but they are at least testable facts that people can investigate for themselves.
    That gives us a lot more to go on than Murdoch, Brown or the Beach Boys (et al.).

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  • Perhaps indiablue can share a little native knowledge here but my impression is the majority of US mortgages are fixed for the lifetime of the mortgage. IOLs and ARMs are a relatively new thing to their mortgage market so 13 interest rate rises are more likely to impact FTBers and those seeking to refinance.

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  • Monty….
    Adjustable rates have been in the picture for a couple decades that I know of and were instantly popular, as is MEWing and home equity credit, for at least twenty five or so years that I know of. I would imagine that many are caught out by rates adjusting, just as they were in the late 80s and early 90s with the crash of the Federal Savings and Loans Banks. What I have heard from the States these past few weeks is the continued agony of falling prices and rising payments — from people who were around twenty years ago and should have known better. They were mesmerised by the idea of “flipping” properties in Florida and other quick-build resort projects. Now they are stuck with IOLs [also a long time stand-by of the imprudent investor/home owner] and even %125 loans which bought furniture and fridge-freezers for primary residents and BTLers alike, all a scenario which I well remember from the past crash over there. This is exactly the same slaughter Fannie Mae and Freddie Mac led in the past. And to those on this site who proclaim that “banks won’t go under” because they are solid, I can only point to the past debacle of the Savings and Loan crash and closures in the USA only sixteen years ago.

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