Halcyon Days - Walt Whitman

Not from successful love alone,
Nor wealth, nor honor'd middle age, nor victories of politics or war;
But as life wanes, and all the turbulent passions calm,
As gorgeous, vapory, silent hues cover the evening sky,
As softness, fulness, rest, suffuse the frame, like freshier, balmier air,
As the days take on a mellower light, and the apple at last hangs
really finish'd and indolent-ripe on the tree,
Then for the teeming quietest, happiest days of all!
The brooding and blissful halcyon days!

Thursday, June 16, 2011

Still reaching for some good news about housing? Here it isn't!

I just finished reading another article desperately seeking good news on the housing front.   The other day, there was one about the fact that "new build" building permits for May were up from year ago.  I can attest to that as a local builder has ramped up construction on the final phase of my subdivision after about a six year standstill.  That's decent news, although I really can't see the benefit of putting more new homes into the marketplace in most cities right now.  

Today's article began by boasting how foreclosure notices fell to their lowest level since 2006!  What they are measuring is the required default notice that is sent by the bank at the beginning of the foreclosure process.  If the bank does not send this notice out, it can't proceed (in most jurisdictions) with the foreclosure.   If anyone thinks this is good news they are not thinking straight.  What this is a strong indicator of is that the Banks (B of A, Wells Fargo, etc.) have had to grind their foreclosures to a halt in some places.  I have had more than one client tell me that a representative of their Bank told them that "After further review, the Bank has decided that it is not in their best interests to foreclosure on your home."   This is after my client have not paid their mortgages in over a year.   It is no longer worth it to the bank to foreclosure because they don't want to own the home and can't sell it if they did.  This is now causing urban blight and other problems in certain cities and is guaranteed to affect the housing market negatively for quite a long time.

Sorry about this depressing topic, but if no one talks about it, it will NOT go away.  Feel free to leave a comment with your well thought out solution to the whole mess!!

Next entry will "upbeat"...back to music maybe, it makes everything better.!
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4 comments:

  1. I call it a "power fade"June 17, 2011 at 12:37 AM

    So what happens to these people that the bank deems "unworthy" of foreclosure? They live mortgage-free? THAT SOUNDS AWESOME!!! Are you saying I should stop paying my mortgage, and I will get away with it scott-free??

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  2. UnknownJune 17, 2011 at 8:09 AM

    Good question "fade"! I imagine they will foreclose eventually, but in the meantime, they are living for free. Some people just move out and start over and their houses just sit there empty with no-one taking care of them - not good. There is some incentive to just walk away now if you can't sell.

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  3. AnonymousJune 21, 2011 at 7:51 PM

    Maybe people will begin to realize just how over-spent American consumers really are and take stock of their lives realizing material and financial wealth does not bring contentment? Nah, just get the cheap mcmansion out in the 'burbs and squat til its worth something. OH SHIIIIIIIIIIIIII-

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  4. UnknownJune 22, 2011 at 9:53 AM

    Anonymous - Good point, but I think the horse is out of the barn. People expect to be homeowners now and the market is set up for that. Getting back to basics is not a popular choice for most!

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