Foreclosures May Hit 1.5 Million in U.S. Housing Bust (Bloomberg)

[IChing]

March 12 (Bloomberg) -- Hold on to your assets. The deepest housing decline in 16 years is about to get worse.

As many as 1.5 million more Americans may lose their homes, another 100,000 people in housing-related industries could be fired, and an estimated 100 additional subprime mortgage companies that lend money to people with bad or limited credit may go under, according to realtors, economists, analysts and a Federal Reserve governor. Financial stocks also could extend their declines over mortgage default worries.

The spring buying season, when more than half of all U.S. home sales are made, has been so disappointing that the National Association of Home Builders in Washington now expects purchases to fall for the sixth consecutive quarter after it predicted a gain just last month.

``The correction will last another year,'' said Mark Zandi, chief economist for Moody's Economy.com in West Chester, Pennsylvania. ``Fewer people qualifying for mortgages means there will be less borrowers, and that will weigh on demand.''>>>>snip

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahwzaBwuNaII&refer=home

[Warpy]

1. Subprime lenders are going to go bust all over the place

and companies like Merrill Lynch and Wells Fargo, who bought up a lot of those lenders, will be pretty badly scarred by the time this is over.

Then there is the fallout of all those people out there who fell for the teaser rates and the myth that the balloon payments would never happen because they'd sell for a quick buck losing everything.

Plus, there are the ripples throughout the economy from a huge number of people who are desperately trying to save their homes by cutting back on everything but poor folks' food.

Then there are manufacturing jobs (which will be lost mostly abroad, thank goodness) for all the large appliances, construction gear, and everything else building a new house demanded.

This is likely to get nastier and remain nasty for a long time.

[IChing]

3. this guy doesn't like new construction-off topic

This is in Chongqing, China.

The problem was this. The owner of the house would not leave without getting paid a large sum of money, how much? 20,000,000RMB, that's about $2mil. No one is living in there, but the owner would not move unless the money is paid. And house owner claims to have connections with the officials, and dares anyone who destroys his house.

http://news.cq.soufun.com/2007-03-11/975176.htm

anyway the US construction news is not good

[Eurobabe]

2. I knew there was a good reason to wait until Fall 07 to sign a contract

My gut says wait, wait!! I fear losing the money that we have built up over the past 10 years.

My gut is always right. Phew.

[OrangeCountyDemocrat]

9. Too Soon

The collapse will just be picking up steam in Fall '07. Methinks it's going to be at least 2009 before things start to level off.

Fall '07 is when they'll perhaps begin to admit that they were WRONG about the slowdown and it's duration. Right now we're supposedly still in a "soft landing." Fucking SPINSTERS.

[Eurobabe]

11. You think that long??

I guess when the final shakeout is done, maybe it is better to not own anything in the US at ALL. But this is difficult for me, psychologically speaking. Unless one of my daughters takes pity on me and gives me a "room" at their apt. or house down the road.

[Robbien]

4. Notice that all the stories are about the lenders, builders, creditors,

investors and hedgers.

The poor guy down at the bottom of the heap who is losing his place to live due to predatory lenders is ignored in all the stories.

[soothsayer]

5. mebbe the ridiculous housing prices will start to come back to

reality

[Systematic Chaos]

6. Already posted earlier in GD

Check this thread.

[OhioChick]

7. Thanks...

It got locked here in LBN this morning. :shrug:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2764141

[Systematic Chaos]

8. I was wondering why myself.

n/t

[diamidue]

10. Probably more jobs will be lost than they are saying.

..."100,000 people in housing-related industries could be fired, and an estimated 100 additional subprime mortgage companies that lend money to people with bad or limited credit may go under.."

That number is probably very optimistic. Here's another article that is a bit more negative. It's predicting a loss of 900,000 lending/housing-related jobs this year.


http://www.marketwatch.com/News/Story/many-layoffs-coming-housing-economists/story.aspx?guid={102B585B-9CC4-49B5-954B-5706815027D7}&dist=TNMostMailed

[sarcasmo]

12. I wonder how many of these were McMansions. Kick

[sarcasmo]

13. Self Delete/ Dupe