No-Money-Down Loans That Sank U.K. Housing Return With Government Lending Oct 9, 2009
When property prices decline, homeowners with higher percentage mortgages are more likely to fall into negative equity, where the loan is greater than the value of the house ... The plan reduces the chance of negative equity because the amount owed to the government and developer will fall if the value of the home declines. (Bloomberg -- UK)
Every 13 seconds there is a foreclosures filing in US Oct 9, 2009
Rising joblessness combined with a large degree of negative equity are going to cause foreclosures to increase. . (The Star Online, Malaysia -- Business)
Some IRS Balm for Short Sales of Homes Oct 8, 2009
These sellers have negative equity a condition known colloquially as being upside down or underwater. Legislation that went on the books at the start of 2007 significantly benefits some upside downers and does absolutely nothing for others. (RealtyTimes)
U.S. Treasury Set to Finalize Home "Short Sales" Plan Oct 3, 2009
Unlike most modifications, "short sales" eliminate the problem of negative equity that has become a big reason for defaults as home prices have plunged. The incentives, first announced in May, would expand the government's Home Affordable Modification Program that has seen limited success in lowering payments for hundreds of thousands of homeowners deemed eligible. (ABC News -- Wire)
More Storm waves as client tells of empty assurances Oct 1, 2009
Bruce Milburn told a Federal Court hearing in Brisbane yesterday he was left with a $300,000 debt he could not repay because Commonwealth Bank failed to issue a margin call before his loan slipped into negative equity late last year. Mr Milburn said Storm founder Emmanuel Cassimatis repeatedly told him he had ''nothing to worry about'' when borrowing to invest in indexed funds as safeguards were in place. (Sydney Morning Herald -- Business)
Is it Morally Wrong to Default on a Mortgage? Sep 30, 2009
But the percentages increased as the negative equity increased. 37% of those who thought that voluntary default would be morally wrong would, nonetheless, walk away from a home that was $200,000 upside down. (RealtyTimes)
Apollo Management seeks redemption in Pliant-Berry tieup Sep 30, 2009
3bn of debt based on its USD 480m LTM EBITDA. Without synergies or top-line growth, a combined entity would still have negative equity given Pliants estimated 2009 EBITDA of USD 111m and USD 340m of post-bankruptcy debt. But if Berry hits its peak EBITDA potential of USD 550m and synergies bump EBITDA from Pliants operations to USD 170m, a very different picture emerges. (FT.com -- Markets)
salvaging postmodernism Sep 25, 2009
That the "trickle-down" effect would mean the passing on of losses through job cuts and negative equity rather than any kind of positive redistribution. Jameson identifies early on the difficulty of seeing the whole situation social and financial and warns us that we must be on our guard against the media, which would have us forget the bad news we heard yesterday in favour of the worse news we hear today: "The informational function of the media would be to help us to forget, to serve as the... (Harper's Magazine)
We rely too much on public housing Sep 25, 2009
And imagine the outcry then when more people are faced with negative equity in their houses ... And both sides are scared to death of presiding over the day the music stops, and negative equity becomes a reality for a significant proportion of those sucked into this mad game of Monopoly we've all been playing. (Sydney Morning Herald -- Opinion)
Macquarie says no to Storm victims Sep 22, 2009
BusinessDay is aware in some instances Macquarie Group margin loans ended in what is known as ''negative equity'' - when the borrowers lost all their money and ended up owing Macquarie Group extra money. There are also signs Macquarie, which is bound by a responsible lending clause in the bankers' code of conduct, paid little attention to Storm Financial clients' ability to repay the loan. (Sydney Morning Herald -- Business)
The questions Macquarie won't answer Sep 21, 2009
I understand some Macquarie margin loan customers experienced negative equity ... Were Macquaries systems able to cope with the volume of margin calls last year, given at least some of Storms clients experienced negative equity. (Sydney Morning Herald -- Business)
Unlikely suspects walk away from mortgages Sep 21, 2009
But they see it as the most practical solution under the circumstances, and they won't have to deal with their negative equity albatross any further. The Experian-Wyman study does not attempt to explore the ethical or legal aspects of mortgage walkaways. (San Francisco Chronicle)
60-Day General Motors Car Return P... Sep 19, 2009
such as:any other taxes, licensing, titling or registration fees, insurance, accessories, dealer fees, extended warranties, finance charges, negative equity or any other expenses incurred by the customer at the time of taking delivery of the new vehicle. Normal wear and tear is acceptable, and total damages under $200 are covered. (Suite101.com)
Strategic Defaults: When Homeowners Walk Away From Mortgages They Can Afford Sep 15, 2009
But, if the negative equity is increased to $100,000, 22% of the "moral" ones would. At $200,000 upside-down, 37% said they would walk even though they thought it was morally wrong. (RealtyTimes)
More surveyors report price rises Sep 15, 2009
Page last updated at 23:11 GMT, Monday, 14 September 2009 00:11 UK. The UK housing market has shown signs of revival. (BBC News -- Business)
Recession of '09 takes its toll on Americans Sep 14, 2009
"We were finding that customers who came in for Cash for Clunkers were people who had no negative equity on their vehicles," said AutoNation chief executive Mike Jackson. "They were people who held on to their vehicles for a long time. They had good credit. They were basically people who were frugal and conservative who didn't see the need to get a new car every five years.". (Honolulu Advertiser)
U.K. Housing Slump Will Resume in 2010 on Mortgage Squeeze, Item Club Says Sep 14, 2009
Price rises largely reflect the acute shortage of available properties, with many homeowners either trapped in negative equity or reluctant to sell for fear of locking in the losses of the past two years. . (Bloomberg -- UK)
Housing prices up for big test Sep 12, 2009
Money Managers director Kevin Bailey warned buyers the property market rally might not be sustainable and those who buy now risk having negative equity in their homes by next year. The question is not whether lots of people are gullible enough to be rushing out and buying property this month or next month,'' he said. (Sydney Morning Herald -- Australia)
Cap'n Manny and his crazy crew Sep 5, 2009
Some investors were sold out with negative equity of up to 143 per cent - meaning they ended up owing their margin lenders. Yesterday the chairman, Bernie Ripoll, asked about other irregularities, including one investor. (Sydney Morning Herald -- Business)
Capmark in Berkshire Asset Deal, May Go Bankrupt Sep 3, 2009
It said stockholders had negative equity of $1. 14 billion as of June 30. (ABC News -- Wire)
Foul-up, conspiracy or greed? Storm probe nears an answer Sep 3, 2009
He also described a meeting in Sydney with Colonial Geared Investments late last year in which Mr Cassimatis tried ''a last throw of the dice'', arguing Storm should assume the $40 million or so in negative equity built up by about 400 clients. But Mr Cassimatis could only do this if the Commonwealth Bank loaned him the money, Mr McCulloch said. (Sydney Morning Herald -- Business)
Margin loans to blame: Storm adviser Sep 2, 2009
Mr Dalle Cort, who termed himself ''Cairns's biggest loser'' after he was left with negative equity of more than $450,000, blamed the collapse on the ''product failure'' of margin loans. We couldn't possibly know,'' Mr Dalle Cort said yesterday. (Sydney Morning Herald -- Business)
Storm blames banks for margin call fiasco Sep 2, 2009
Many who had margin loans through Storm had "negative equity" due to the loans not being called in quickly enough, leaving their homes at risk. Former Commonwealth Bank and Storm staff Carmela Richards and Kristy Devney said it was their understanding banks were responsible for making margin calls, based on what had happened with margin calls in 2003. (Sydney Morning Herald -- Business)
Spotlight on Storm debacle Sep 2, 2009
Worse, in an estimated 500 cases, investors lost all their cash buffer and were left owing money to margin lenders, or "negative equity". "I still believe that we should not have been left in negative equity. How did this happen? Who was involved? The answers should come out in the Senate inquiry," Jack and Frances Dale, who are due to give evidence in Cairns today, wrote in their submission. (Sydney Morning Herald -- Business)
I'm a big loser too: Storm boss Sep 1, 2009
He also said he was caught out personally, terming himself "the biggest loser in Cairns" because he ended up with negative equity of more than $450,000 from his own margin loan. Mr Dalle Cort blames what he terms as "product failure" for Storm Financial's collapse, particularly the failure to call in margin loans before they reached negative equity. (Sydney Morning Herald -- Business)
The good, the bad and the bizarre Aug 29, 2009
However, there were some companies which got so excited about write-downs they managed to join the very small ''negative equity club'' even though the directors and investors clearly think they are solvent and offer some residual value ... 5 billion loss in 2008-09, which delivered a balance sheet showing negative equity of 00004000 $613 million ... 48 billion released on August 27, which was way over the odds given it now has negative equity of $660 million and a positive market capitalisation... (Sydney Morning Herald -- Business)
Postal Service Offers $15,000 Buyouts Aug 26, 2009
some of those were million dollar houses and what id like to know is how much negative equity the USPS bought. the whole thing smells. (CBS News)
Commercial real-estate crisis to worsen Aug 26, 2009
For a commercial-loan modification to work, it must adequately address the problems of affordability, negative equity and maturity, Kline said. In other words, the monthly payment must be doable, the loan has got to be worth repaying, and there can't be a balloon payment due within the next three years, during which time the lending situation is not expected to improve. (AZCentral -- Business)
When home is a debt trap Aug 26, 2009
The risk of unemployment combined with negative equity could catch out young borrowers ... The worst-case scenario for recent homebuyers is that some will end up with negative equity owing more than their property is worth and be forced to sell into a weak market ... This will ease, and prices may slip, so negative equity is a possibility for some. (Sydney Morning Herald -- Business)
Where it all began Aug 25, 2009
The rise in negative equity when a borrower s mortgage debt exceeds the value of his home is also fuelling foreclosures, not least because many would rather walk away than keep making payments on a home that is worth much less than the sum owed on it ... Deutsche Bank s securitisation team expects negative equity to peak at 48% of total homes by 2011 ... This matters because negative equity weighs doubly heavily on home prices, by both weakening demand (it traps potential buyers in their homes)... (The Economist)
Tampa home prices fall Aug 25, 2009
2 percent of all mortgaged properties, were in a negative equity position, down slightly from the 32. 5 percent listed from the end of March. (Tampa Bay Business Journal, FL)
Area home price decline eases Aug 25, 2009
2 percent of all mortgaged properties, were in negative equity position -- in which homes were worth less than the mortgage -- as of June 2009, according to First American CoreLogic s research. June s negative equity share was slightly lower than the 32. (Milwaukee Business Journal, WI)
Daily chart: Shaky foundations Aug 22, 2009
Deutsche Bank s securitisation team expects negative equity to peak at 48% of total homes by 2011. AP. (The Economist)
Survey: Homeowners becoming more realistic Aug 19, 2009
Despite some signs of slowing depreciation in many markets in the second quarter the height of the 2009 home-buying season there are many market fundamentals that will challenge home prices in the near-term: High for-sale inventory levels, foreclosures, negative equity and price-to-rent ratios that still aren t back to historical levels yet. Zillow worked with to conduct the online survey from July 7 - 9. (Columbus Business First, OH)
Almost 38% of homes are "underwater" Aug 18, 2009
8 percent of mortgaged homes in the Denver-Aurora-Broomfield area of Colorado had negative equity in the second quarter, ended June 30, according to a study released Monday by First American CoreLogic Inc. ... In the Denver-Aurora-Broomfield area, 241,722 of all properties with a mortgage had negative equity in the second quarter ... A mortgage with negative equity also referred to as being underwater or upside down means a borrower owes more on the mortgage than the home is worth. (Denver Business Journal, CO)
Americans optimistic about home values Aug 18, 2009
He noted that, despite some signs of slowing depreciation in many markets in the second quarter, the growing number of foreclosures, negative equity and price-to-rent ratios will continue to impact that. Fewer people are willing to consider that their home will continue to lose value. (South Florida Business Journal, FL)
Fresno Co. home prices draw buyers Aug 18, 2009
Home Values Flatten in Short Term; Yearly Declines Shrink, but High Rates of Foreclosure, Negative Equity Expected to Delay True Recovery ... -- Negative equity: More than one-fifth (23 percent) of all owners of single family homes with mortgages owe more on a mortgage than their home is currently worth. (Fresno Bee -- Local)
Report shows many state mortgages upside down Aug 16, 2009
reports that almost 57,000 of the 225,000 mortgages in the state fall into "negative equity." ... Nationally, CoreLogic reports almost one-third of mortgages were categorized as being in negative equity. (KSLA.com, LA)
Delinquencies in UK buy-to-let mortgages fall Aug 15, 2009
Standard & Poors still has concerns on the market, estimating that the number of borrowers in negative equity would rise significantly even for comparatively small further falls in house prices. The Financial Times Limited 2009. (FT.com -- Markets)
Report finds 1 in 5 Triangle mortgages 'upside-down' Aug 15, 2009
Nationally, the firm says, 32 percent of 15 million mortgaged properties were in negative equity position. The state with the highest percentage of underwater properties, American First reported, was Nevada at 65 percent. (Triangle Business Journal)
Hong Kong emerges from recession Aug 15, 2009
But for the majority still in jobs, and without negative equity given the continued buoyancy of Hong Kong's property market, there has not been an obvious recessionary feeling. A recent survey suggested Hong Kongers were spending - and saving - as much as usual. (BBC News -- Business)
Rival banks battle over Mastro bankruptcy Aug 15, 2009
With the sharp decline in commercial property values, creditors like Golf are increasingly worried that Mastro has negative equity in properties that underpin their loans ... 9 million, resulting in negative equity that could exceed $1. (Puget Sound Business Journal, WA)
Report: 40% of Columbus-area mortgages underwater Aug 15, 2009
-based First American CoreLogic said it found that 160,216, or 40 percent, of all properties with a mortgage in the Columbus area were in negative equity, or underwater, as of June. An additional 28,000 mortgages are nearing the point of negative equity ... 2 million mortgages, or nearly a third of all mortgaged properties, are underwater, while the percentage of homes in or near negative equity climbs to 38 percent. (Columbus Business First, OH)
Report: Twenty-six percent of Houston-area mortgages underwater Aug 15, 2009
More than a quarter of all mortgaged properties in the Houston-Sugar Land-Baytown are in negative equity, according to new data from. Negative equity means the borrower owes more on their mortgage than the home is worth ... 15 percent, were in negative equity as of June 30, 2009, while 310,715 mortgages, or 33. (Houston Business Journal, TX)
Feds shut down Hill District S&L Aug 15, 2009
Dwelling House was the lender of first and last resort for two generations of black families in the Pittsburgh community, but it suffered a severe blow to its stability late last year when federal auditors discovered that about $3 million had been drained out of its capital account and the bank was actually operating with $500,000 in negative equity. Bank officers blamed the heavy losses on the work of a ring of cyber thieves. (Pittsburgh Post-Gazette, PA)
Cincy MSA: 37% of mortgages underwater Aug 15, 2009
25 percent of all mortgages, are in negative equity, First American said in a news release ... Negative equity, also known as underwater, is when a homeowner owes more on the mortgage than the house is worth ... 8 percent, are either in or within 5 percent of being in negative equity. (Cincinnati Business Courier, OH)
Notice change in housing market? Aug 13, 2009
With the possiblity of taking on negative equity ... I think it is fair to saddle someone with negative equity. (Atlanta Journal-Constitution -- Business)
FULL STORY-> Aug 12, 2009
"There are still many hurdles to true market recovery. Foreclosure re-sales are buoying overall sales numbers, but their low prices are keeping home values down. Reports of increasing mortgage defaults signal that foreclosures are likely to increase again and peak in mid-2010. With increasing unemployment and high rates of negative equity, we have a fertile breeding ground for even more foreclosures, which add to the already-high level of for-sale inventory that needs to be cleared before values... (RealtyTimes)
U.S. home prices fall, but rate slows: report Aug 11, 2009
Increasing unemployment and high rates of negative equity should spur even more foreclosures, which will add to the already-high level of for-sale inventory that needs to be cleared before values begin to rise, he said ... Negative equity has been one of the biggest banes for many homeowners, making them unable to refinance their loans and preventing some from selling their homes. (Yahoo News -- Press Releases)
U.S. Q2 Home Prices Fall, but Rate Slows: Report Aug 11, 2009
Increasing unemployment and high rates of negative equity should spur even more foreclosures, which will add to the already-high level of for-sale inventory that needs to be cleared before values begin to rise, he said. 1. (ABC News -- Wire)
Home value declines ease Aug 11, 2009
Negative equity continues to plague homeowners, with 23 percent of all single-family homeowners owing more than what their home is worth ... He notes that foreclosures are keeping home values down, and increasing unemployment, coupled with higher rates of negative equity, will create fertile breeding ground for more foreclosures. (South Florida Business Journal, FL)
Irwin Financial loses $57 million in 2Q Aug 6, 2009
The corporation s negative equity has no immediate impact on its subsidiary banks because the banks do not rely on the corporation for funding, Irwin Financial said in the release. Reader Comments. (Louisville Business First, KY)
Investing in Bank Owned and Short-Sale Residential Properties Aug 6, 2009
However, the owner is in a negative equity situation (the sales price less closing costs is less than the debt on the property) and needs lender approval to affect the sale. Paperwork / Rules for Offer Submission: A standard purchase and sale agreement is used along with an addendum acknowledging the fact that this is a short-sale transaction. (RealtyTimes)
Northern Rock Reports Wider First-Half Loss as Arrears on Mortgages Climb Aug 4, 2009
About 15 percent of U.K. mortgages have slipped into so-called negative equity, and this figure may climb to 34 percent if house prices fall in line with expectations, Fitch Ratings said in June. To contact the reporter on this story: in London at. (Bloomberg -- UK)
Royal Bank of Scotland, Lloyds May Write Down $29 Billion of Property Debt Aug 4, 2009
An additional 15 percent decline in British house prices would leave 90 billion pounds of Lloydss mortgages in so-called negative equity, where the loans are worth more than the property, he said. Such mortgages wouldnt be covered by the government insurance program, he added. (Bloomberg -- UK)
* Toxic assets continue to poison bank accounts Aug 3, 2009
For example, falling home prices put more families in negative equity X mortgages worth more than the home. This creates an incentive to default, which increases foreclosures and lowers the value of the mortgage-backed securities on financial firms books. (Taipei Times, Taiwan -- World)
House prices 'to recover slowly' Aug 3, 2009
But the group, which represents housing associations, said English homeowners who bought at the market peak could be in negative equity for five years ... That would mean that English homeowners who bought at the height of the property boom would be in negative equity until 2014. (BBC News)
The Hidden Reason for All Those Jul 28, 2009
Zingales, along with colleagues Paola Sapienza, who teaches at the Kellogg School of Management, and Luigi Guiso, professor at the European Institute, found that people rarely default if the negative equity in their home is 10% or less ... In their research paper Moral and Social Constraints to Strategic Default on Mortgages, the professors point out that no attempt has been made to resolve the negative equity problem, i.e. the fact that 22% of U.S. households have a mortgage that is... (Fox News)
Rebalancing global growth: A long way to go Jul 25, 2009
Millions of people with negative equity in their homes, for instance, cannot move to get a new job. The to-do list is a long one, the risk of missteps is high, and it will take years to complete. (The Economist)
Owners Torching Cars to Collect Insurance Jul 17, 2009
"Most people can't afford the car payment. A lot of it is the nature of cars. A lot of negative equity is built into cars and they just feel like they can't afford that payment anymore," said Brian Kunzi with the Nevada Attorney General's Division of Insurance Fraud. Kunzi says on average, the AG's Office sees four to five intentional car blazes a year. (KLAS-TV.com, NV)
Washington Report: Home Affordable Refinance Program Jul 14, 2009
Under the original rules for the program, the cutoff point was just five percent negative equity -- or a "loan to value" (LTV) ratio of 105 percent ... com estimates that nationwide, 22 percent of all owners have negative equity in their properties - many of them by more than five percent. (RealtyTimes)
26% of home mortgage defaults 'strategic' Jul 13, 2009
The study found that 26 percent of the record numbers of home mortgage defaults across the country are "strategic" - that is, calculated economic decisions to bail out of loans by owners who actually have the money to make the payments but can't handle the negative equity they're carrying caused by local property value declines ... com, 22 percent of all homeowners were in negative equity positions during the first quarter of 2009 - "underwater," with mortgage debts that exceed their home values... (San Francisco Chronicle)
Nationwide offers 125% mortgage Jul 9, 2009
It will only be available to existing customers in negative equity who want to move house. Negative equity means that the value of someone's home is less than the amount they owe on their mortgage ... Nationwide said the deal was a very "niche offer" and that not everyone in negative equity would qualify. (BBC News -- UK)
Economist: Subprime Borrowers Not At Fault Jul 8, 2009
And the 12 percent of homes in Liebowitzs analysis that had negative equity comprised 47 percent of all foreclosures. Loan defaults are up sharply, and with many government and banks self-imposed foreclosure moratoriums expiring, the biggest lenders indicated they are likely to move more aggressively to clear up a backlog of troubled mortgages. (Newsmax)
Mortgage Defaults: Many Are Intentional, Study Finds Jul 7, 2009
The current approach focuses on whether or not homeowners can afford their monthly payments, and largely ignores the fact that some 20% of homeowners owe more than their house is worth a situation known as negative equity, or being "underwater," which, according to the paper's findings, may itself trigger default ... The hesitation to intentionally default when the theoretical amount of negative equity was $50,000, even when representing the same percentage of a home's value, may relate to the... (Time.com)
