Real Estate Crash: New Century Gets Default Claims
 

http://quote.bloomberg.com/apps/news...d=aY3mu1qdRq94

I never thought I would see this company go under. Trading stopped today and it's just astounding things actually got this bad for them.

I believe Lensman had predicted something like this a while back and put up a thread about the coming real estate crash. I have to admit I was at a meeting last fall and the avalanche prediction was indeed for March 18 of 2007. According to the pros, that's when millions of families will go into default.

Th US is at 4.5% unemployment, the economy is strong, the so-called housing bubble didn't really burst except a few over-heated markets had moderate set-backs, the subprime issue is a small segment of the market and it is healthy that the story is already out there so it won't now cause panic... I am staying fully invested in equities.

That's not really the concern... Something like 2 billion in 'teaser rates' adjust to the full rate this year, and a significant amount of people are unlikely to be able to service the debt at the adjusted rates.

The US real estate market is absolutely, positively going to crash and the US economy with it. I'll be happy to have an intelligent convo with anybody interested, but carpal tunnel keeps me from explaining here, yet again.

Something to enjoy - http://www.mortgageimplode.com/

jack welch was predicting an economic slowdown followed by an interest rate cut.

The Fed has enough gun powder to lower interest rates rapidly in case of contagion spilling over from the sub-prime mess. That will go a long way to help borrowers out.

Sounds like you absolutely positively are convinced of that, kind of like the 9/11 conspiracy types who it is pointless to have an intelligent convo with too.

so does this mean now would be a good time to buy? :]

so does this mean now would be a good time to buy? :]

From what I am seeing, it is just the sub-prime lenders that are up shit crick. Think about, would you loan money to someone with iffy credit scores that is just promising you that they have enough income to pay back the loan? Hell no!

Personally I am looking for partners with cash to invest, and properties that are headed into foreclosure to buy at below market prices. So if you are wanting in on the Seattle market, which is still strong, give me a shout!

Already seeing it here in Vegas. One of the States largest mortgage companies closed 2 weeks ago, Silver State, and defaults are at 30%.
2 years ago, a home for sale stayed on the market hours, today there are 38,000 homes for sale.

Headpimp, you're singin' my song! NW was an area I was looking at. Only caveate is the changing weather patterns of late. That area can handle some rain but even the NW can't handle it too much. Should there be a drought or other bizarre weather pattern that would change the pricing and upkeep costs.

The sub prime market is 100% trashed now, this was booming like 3 years ago
This means alot more houses on the market

I wouldn't buy yet, I would wait, I think it'll go lower

The market has started to "Level out" in my area.

damn.. I've just bought 3 mill house last week

I've been saving cash - just waiting for some good RE deals! Unfortuately, I live in an area with a LOT of retirees - most paid cash for their homes. Not many foreclosures. At least not yet.....I know the land auctions that used to be quite frequent have slacked off tremendously in the last 2 years.

One thing I just found out (and if they're reading this, thanks for the info :) ): apparently one of the biggest land owners in the county got his land because he owns a funeral home Family has acreage they've had for years, sometimes generations. The person living on the property dies, no money for a funeral, badda boom, badda bing, he takes the land in lieu of payments for a funeral. The most recent was amazing - 15 acres of PRIME land for 2 funerals, probably costing $20K tops. The kids are too stupid to borrow on the land, pay the funeral costs off and make some $$$$ too.

That's how I got the lot next to me - parents died, kids didn't want to deal with it. They let it go to auction even though I and the previous owners tried for YEARS to buy it from them where they'd have the liens paid AND CASH. Nothing. Oh well. I paid $1000 for it and it's worth around $65K now and just going up since it's waterfront. I can live with that :)

I really don't mind making money on other's stupid decisions so I welcome the foreclosures. I'm going to try to grab a small house/condo closer to ATL too for convenience (can stay there on late nights and weekends when I don't want to drive home) and investment.

Stock market took a big hit again. Haliburton moves to Dubai.

I got me a feeling that there's gonna be a stock market crash and the Bush/Cheney gang are going to attempt to clean up by buying up everyone's shit on the downlow real estate is gonna go haywire.

http://biz.yahoo.com/ap/070313/late_...ges.html?.v=11

Foreclosures at an all time high and growing according to that story.

Foreign stock markets take a hit too. The next few days will determine which direction we'll be going in regarding global economics. So many people have their investments in the subprime market including the big unions.