Foreclosure Rate In The Pudget Sound Area

[Marc Martyn]

Has anyone seen any foreclosure rates for the Sound area? Right now, CA & FL are leading the nation. AZ & NV are right behind them. So far, I don't think Spokane has been extraordinarily high. Just wondering what is going on over there.

[fishnislife]

My wife and I are looking at a foreclosed home over here on the Pennisula. They are around but it's not as bad as Cali and Florida. Soon they will be coming up like crazy. We're always a little bit behind the nation average. Just like the housing market in those areas started to drop significantly earlier last year, the Seattle area is still experiencing record highs with just recent slowing. It's coming for sure. Home prices have plateaued and if your in the market for one your time is coming. I have seen a lot of reduced prices around my area.




fishnislife

[Gisteppo]

Marc, as you know, new housing starts are in the toilet in Spokane.

Our foreclosures aren't as prevalent because most of the foreclosure crisis is due to the speculative purchasing of a house thats too expensive for the owner, using a no-down/interest-only loan. As the value dropped, and interest rates cause the payment to spike, nobody could sell their homes for what the loan value was. Default was the only option.

Spokane was such a devalued area (My house is a perfect example. Waterfront home for $290k) that the bubble just brought values up to market standard. Not too many people bought over-valued homes, so our foreclosures weren't too bad (less than 5%).

Seattle should be much worse, as many homes were extremely expensive given their location, and Im sure the speculators were probably buying everything up trying to make a quick buck.

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[Marc Martyn]

That is a very good point, Eric. Another effect of this crazy speculative market is in rentals. One of the saddest things that is happening is renters are being pushed out of their homes on moments notice because the landlord is either behind on his payments or not making them at all and the property is being foreclosed.

My son lives over in Burlington in a newer rental. The complex is being converted into condos and his rent is starting to climb rapidly. I makes me think that the present owner of the property originally bought it to sell the units as condos. Since only a few of the units are selling, I am wondering if the complex owner is close to foreclosure on the entire complex.

I am afraid to say this, but the worst has yet to come. I feel the overall outcome of this mess is going to effect almost everyone and it will take a long time to recover from.

[Gisteppo]

I find the supposed bailout by the federal government to be of the most interest. They play this off as such a benefit for the poor homeowner, but it has just slightly less than nothing to do with John Q Public. It has everything to do with corporate lending and protecting corporations who sold thse garbage mortgages ( remember the Junk Bonds of the '80s? Same people, same problem). I am looking forward to getting a few politicians in office (one in particular) who have less to do with corporate influence and more to do with real change.

I think as an investor, Id be getting myself some rentals right about now. Marc is right that this is just the precipice. Affordable housing needs to come of age again, with a fair number of rentals to help those in foreclosure and those who just can't afford a home.

Scary financial times, especially when compounded with fuel prices (thanks Big Oil!)

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[Marc Martyn]

Just in....... should be an interesting morning on Wall Street tomorrow-

http://www6.comcast.net/news/articles/g ... r.Stearns/

[Gisteppo]

Uh oh, Chase Manhattan is who holds my current mortgage...... Hope they dont buy too much paper from Bear Stearns and sink themselves at the same time.....

I wonder how the foreign markets tolerate it tonight. Should definitely be an interesting selloff in the morning.

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