http://www.doctorhousingbubble.com/foreclosure-reality-check-16-million-foreclosure-filings-with-5-months-of-data-california-notice-of-defaults-and-foreclosures-skyrocketing/
With two months of data for Q2 we are approaching a new record number of NODs for California if the rate holds. Yet somehow this is the bottom to many even thought the data is assuring us a flood of distressed inventory for the foreseeable future. Alt-A and pay Option ARMs are absolutely the worst mortgage products ever devised. They are creations of the housing bubble and serve no other purpose but to fuel the housing bubble. I love this pamphlet put out by the Federal Reserve back in November of 2006:
I took the liberty of answering the question for you in what the Fed took 17 pages to explain. These monstrosities are toxic like nuclear waste. Now a new argument that I am seeing is that since the actual recast time line pushes things well into 2012, that this unfolding will somehow be methodical and efficient. Really? These people have not been to the Inland Empire or to any current auctions. It is anything but. Some places are selling for whatever they can fetch. First the argument was, “housing will go down but not in California.” Next it was, “housing will go down but not in mid to upper range areas.” Now the argument is, “housing will not go down in prime areas.” The bottom line which people fail over and over to examine is local area incomes do not support prices even today. Period. It wasn’t incomes that supported these home valuations but Chucky Cheese mortgages that allowed fantasies to play out in a debt playground.
Many of you old time Dr. Housing Bubble readers
