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I JUST CAN'T TAKE IT NO MORE

By Robin Basichis

Real Estate Agent with Rosen Company West/Diversified Real Estate Consultants L.L.C

November 20, 2009 07:53 AM

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If were to combine mortgage delinquencies with foreclosures as of today you would come up with a 14.50% national total. This is the highest percentage total on record in.

Nevada, Florida and Arizona make up 43% of the national total.

Things are likely got get worse before they get better. Stuff like jobs and employment have to come back. Hopefully jobs will start coming back to Las Vegas.

Didn't the current administration say it was going to help homeowners who were in trouble? What happened to the $50 billion dollars worth of TARP money that was supposed to be earmarked for the Housing Affordability Stability Play (HASP)?

This plan promised to help between 3 to 4 million homeowners. What happened? What happened to all the campaign spiels that led all the way up to Obama's inauguration where he promised Bruce Springsteen and James Taylor that he was going to help at least 9 million homeowners?

So now what? More defaults - more foreclosures? I guess so. Things won't start to turn around until we see new jobs being created. We need to expand and improve commerce in Las Vegas. We need to somehow stabilize the declining real estate market in order to survive this downturn. I do not believe the government is going to help solve our problems. It is up to us to work together through our businesses and communities and make a full fledged effort to pull ourselves out of this mess. There is strength in numbers and together we can do it.

If you life in Las Vegas or anywhere in the country and you are having problems keeping your home - call me. If you are facing foreclosure call me. If you have an investment property that you are upside down on and it's bleeding you - please call me.

Call Robin Basichis - at CBC Property Solutions and I will try and help you any way I can. "I'm mad and I'm angry and I'm not going to take it anymore."

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James Collins

BERKSHIRE HATHAWAY HOMESERVICES - Walnut Creek, CA

And yet we are seeing 3% down buyers buying right back in. Will that help or hurt our market in the next few years?

See my blog about what the current FHA buyers are doing.

Nov 20, 2009 08:00 AM

Robin Basichis

Rosen Company West/Diversified Real Estate Consultants L.L.C - Las Vegas, NV

I wouldn't get too warm and fuzzy yet James.

The Federal Housing Administration, more commonly known as FHA is the insurer of about $750 billion in outstanding mortgages. A HUD Audit on FHA found their cash reserve fund is rapidly depleting and may drop below its Congressionally mandated 2% of insurance liabilities by the end of the year.

At a 50 to 1 leverage ratio, the FHA will soon have a smaller capital cushion than did investment bank Bear Stearns on the eve of its crash. FHA is now dealing with a 14% thirty day or more late rate. This is three times more than conventional mortgages. FHA'S cash reserve ration has fallen over two-thirds in the last three years

Why is this happening to FHA? They are the only one's taking on sticky loans. Conventional Banks will not loan without a substantial down-payment and a stellar credit score. FHA has now placed itself in the position that the secondary lenders were in a couple of years back. Too bad they can't dump their portfolios onto the stock market like the sub-prime lenders did. At least when the smoke clears somebody walks away with a trunk full of cash and there's a good story to tell. This won't happen with FHA. If they go under the tax payer is going to have to pick up the bill.

Out of every four loans currently being written FHA is writing one. Back in 2006 the ratio was 50 to 1. FHA is gambling with public money. If property values continue to decline then we can wave bye-bye to FHA

Nov 22, 2009 10:00 AM

Dale Terry

Yadkinville, NC

It is only going to get worse. One of the things that puzzles me is why Realtors are so out of touch with it all. You would think that home values will be back where they were in just a few more months. Home prices will not be going up more than just a few percentage points for years to come. There is still too much supply and in many areas, there is more than a couple of years worth. Add to the mix the millions of jobs that are permanently gone, and you have a crisis that no one is ready to tackle. Also, the health care bill will be huge if it passes. The actions of our leaders are exactly the same as they were in previous times and they didn't work then. FHA will go down, there are millions of homes that could be foreclosed on, but the banks don't want the liability to show on their books. Another stimulus is probably coming.

BAck to FHA. A decline of just 5 percent in home values put, by definition, all FHA loans under water. Where is the debate about that?

Nov 22, 2009 11:12 AM

There is no debate about what can happen to FHA if property values should decline - and most likely they will unless some miracle befalls us. I do not understand what is going on in the Activerain community and other real estate professional communites. Can't they see the forrest before the trees? Are they in denial? Or is everyone keeping a secret that I know nothing about. The guy in the vest up there. I don't know your name - how come you know abou this stuff?

Nov 23, 2009 04:49 AM

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