How bad is the mortgage crisis in CA and FL

From investment news I read that

California has 445,678 subprime loans with an average balance of 327,081 dollars, the average loan is 31 months and 49.5% are w/current payment.

California has 699,337 alt a loans with and average balance of 441,665, the average loan is 29 months old and 76.6% are current.

Was this bailout engineered

Alex Jones' Infowars: There's a war on for your mind!

Kurt Nimmo
Infowars
September 23, 2008

According to a recent Rasmussen Reports survey, 28% of Americans support the banker bailout plan and another 35% are not sure what to think. “Adding weight to the large number of undecideds is the finding that 82% of Americans are following the bailout story, including 44% who say they are following it very closely. Sixty-five percent (65%) say they are at least somewhat confident they understand the reasons why the plan is being proposed.”

Hank Paulson

Goldman Sachs chairman Paulson’s appointment was no mistake and it surely wasn’t a conflict of interest.


In fact, most people have no idea what’s behind the plan because the corporate media is not telling them the whole story. Most do not realize there is a crash right around the corner and it is part of the New International Economic Order — synonymous with the phrase New World Order — proposed by the Trilateral Commission, a coterie of bankers and directors of transnational corporations headed up by the chairman of Chase Manhattan Bank and a central figure in the Council on Foreign Relations, David Rockefeller.

“The Trilateral Commission is international and is intended to be the vehicle for multinational consolidation of the commercial and banking interests by seizing control of the political government of the United States,” Barry Goldwater wrote in 1979.

How best to realize this multinational consolidation? Break the bank — or rather the U.S. Treasury. In 2005, writing for the Federal Reserve, Dr. Laurence J. Kotlikoff noted: “Countries can and do go bankrupt. The United States, with its $65 trillion fiscal gap, seems clearly headed down that path.”

One year after Kotlikoff wrote this, the Bush administration sacked Treasury Secretary John Snow and replaced him with Hank Paulson, chairman of Goldman Sachs, one of a small number of institutions allowed to purchase bills, bonds, and notes directly form the Treasury. Paulson’s appointment was no mistake and it surely wasn’t a conflict of interest.

On March 31, 2008, Paulson released a 200 page document titled, “Blueprint for a Modernized Regulatory Structure.” It calls for the complete restructuring of U.S. markets and their regulatory structures to meet new “global standards,” that is to say bring them in line with the New International Economic Order, i.e., the New World Order.

Under Paulson’s “Proposed Treasury Authority to Purchase Troubled Assets,” (see the Fact Sheet on the U.S. Treasury’s website), the “Secretary will have the discretion, in consultation with the Chairman of the Federal Reserve, to purchase other assets, as deemed necessary to effectively stabilize financial markets.”

In other words, if passed by Congress, Paulson and Bernanke will have the authority to intervene in the markets as they — as minions of the global elite — deem necessary. It is not a stretch to imagine the outcome: a cornering of the gold, silver, or platinum markets, the snatching up of prime real estate and corporations, running the competition out of business. In essence, this represents the sovietization of the U.S. economy. It is central planning as envisioned by the global elite. It is a triumph for the New International Economic Order.

It is a fait accompli for the globalists.

Not that you can do anything about it, at least nothing legal. “The bill would bar courts from reviewing actions taken under its authority,” reports Bloomberg. “This is a much-needed declaration of power for the Treasury secretary,” remarked historian John Steele Gordon, author of “Hamilton’s Blessing.” (Alexander Hamilton was a blessing for the bankers — he conceived the First Bank of the United States, modeled after the Bank of England.) Frank Razzano, a former assistant chief trial attorney at the Securities and Exchange Commission, told Bloomberg the Bush administration wants “dictatorial power unreviewable by the third branch of government, the courts.”

“This is not a monarchy,” economist Nouriel Roubini complained earlier this week.




No, it’s not a monarchy — instead, it’s shaping up to be a fascist dictatorship as Mussolini, the father of fascism, understood it: an absolutist state controlled by corporations and international bankers.

“If Wall Street gets away with this,” writes William Greider for The Nation, “I predict it will become a transforming event in American politics — exposing the deep deformities in our democracy and launching a tidal wave of righteous anger and popular rebellion.”

Mr. Greider may not know it, but the globalists are one step ahead of him. These would-be rebels will have to deal with the 3rd Infantry Division’s 1st Brigade Combat Team and other components of Northern Command, soon to be “an on-call federal response force for natural or manmade emergencies and disasters, including terrorist attacks,” according to the Army Times. It’s an “enduring mission,” dealing with terrorists who are opposed to being reduced to chattel slaves for the bankers and global elite.

“This is not a plan aimed at reviving the economy,” remarked Robert Brusca, chief economist of Fact and Opinion Economics.

Brusca’s right. It’s a plan designed by bankers to steal wealth through bankruptcy and economic depression. It’s designed to reduce you to serfdom and make you a peon to the New International Economic Order, aka the New World Order.

Finally, Council on Foreign Relations insider Carroll Quigley warned us about this back in 1966 when he wrote:

The powers of financial capitalism had (a) far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank… sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.

Pending homes sales decline in California

Gmail - C.A.R. Newsline - jmcconnin@gmail.com

PENDING HOME SALES DECLINE 3.2 PERCENT IN JULY
Signed contracts for existing homes in July fell 3.2 percent, according to the latest Pending Home Sales Index from NAR, released Tuesday, reflecting a sharper-than-expected decline in purchase activity for the period. On a seasonally adjusted basis, the pending sales index declined to 86.5 from a revised June reading of 89.4, representing a 6.8 percent decline from a year ago, NAR reported.

"Even with the latest pullback, pending home sales have been fairly stable on a national basis for nearly a year, with dramatic local market differences continuing," said Lawrence Yun, NAR's chief economist. "Contract signings have been steaming ahead, nearly doubling in activity from a year before in several California and Florida markets."

Forclosure rates in California

America's Most Distressed Housing Markets - Forbes.com

California is a non-judicial state. This means that once a homeowner fails to remedy defaults within 117 days, his or her lender can publicly list and sell the property.

The result? In California markets like Riverside, Sacramento and Los Angeles, homes sold while in some stage of foreclosure represent 50%, 39% and 38% of total sales, respectively. That's bad for the people selling the homes, but good for the overall market's recovery as excess inventory gets burned off.

More on Loan Modification

Calculated Risk: IndyMac Mods: Principal Forbearance Vs. Reduction

First, the interest rate is lowered to the current Freddie Mac survey rate for fixed rate mortgages, and fully amortized as a fixed rate loan. As far as I can tell, at this initial step, the loan is amortized over its remaining term, whatever that is.

If that is not enough to achieve 38% HTI, then the interest rate is "stepped" for up to five years. That means that the initial rate is set no lower than 3.00% for the first year, and increased each year by no more than 1.00% per year, until it hits the Freddie Mac survey rate (which was 6.50% at the time FDIC published). This does not make the loan an ARM or subject it to negative amortization; the payment is re-amortized each year after the interest rate "steps up" until it hits the permanent rate. That means that the loan is always paying some principal from the inception of the mod.

Remember that ARMs involve potential rate increases; whether they happen or not, and how far they go, depend on future (unknown) movements in the underlying index. A "step loan," which is what I understand these mods to be, has scheduled rate increases that are exactly specified in the modification agreement, and which are not subject to future market rate fluctuations: each loan will "step up" to the permanent rate, regardless of what happens in a year or four to market interest rates. So the borrower gets the same kind of long-term "rate lock" of a fixed rate loan--the rate will never be higher than 6.50% (or whatever the Freddie rate is on the day the mod is drawn up), and after the initial "step" period it will never be lower than that. The step period simply "ramps" the borrower into the fully-amortized payment at 6.50% by starting out with a fully-amortized payment at a lower rate and slowly increasing that rate each year until the final rate is achieved.

Loan Modification for Distressed Indymac Mortgage Loans

FDIC: Loan Modification Program for Distressed Indymac Mortgage Loans

Loan Modification Program for Distressed Indymac Mortgage Loans
IndyMac Federal Bank, FSB (“Indymac Federal”) will implement a new program to systematically modify troubled mortgages. The program is designed to achieve affordable and sustainable mortgage payments for borrowers and increase the value of distressed mortgages by rehabilitating them into performing loans. This in turn will maximize value for the FDIC, as well as improve returns to the creditors of the former IndyMac Bank and to investors in those mortgages. The new program will help IndyMac Federal improve its mortgage portfolio and servicing by modifying troubled mortgages, where appropriate, into performing mortgages.

Below are some questions and answers regarding the program:

What loans are eligible?
What is the timeline for rollout of offers?
How will you determine which loans receive modification proposals first?
What modification options will be available to borrowers?
How does the IndyMac Federal determine whether the modified mortgage is affordable to the borrower?
How do borrowers apply for the program?
Where should borrowers interested in the program call to apply?

What loans are eligible?
The streamlined loan modifications will be available for most borrowers who have a first mortgage owned or securitized and serviced by IndyMac Federal where the borrower is seriously delinquent or in default. IndyMac Federal also will seek to work with others who are unable to pay their mortgages due to payment resets or changes in the borrowers’ repayment capacities. This streamlined approach applies only to mortgages for the borrower’s primary residence. As with all modifications, borrowers will have to demonstrate their financial hardship by documenting their income.

Assumable mortgages

This is an interesting fact to consider but before you let someone assume mortage speak with a real estate attorney.

REALTOR® Magazine-Daily News-Sellers May Want to Offer Assumable Mortgage

Sellers May Want to Offer Assumable Mortgage

Sellers who can’t find a buyer should look at the terms of their mortgage and, if it is permitted in their area, offer to let a buyer assume their loan.

Assumable mortgages made in recent years generally carry interests rates below current market rates. Plus, a buyer who can qualify with the lender can step into a mortgage without having to come up with a down payment or pay hefty closing costs.

The Website HomeAssume.com matches buyers and sellers. FHA and VA mortgages are assumable, as are many conventional adjustable-rate mortgages.