Posts tagged Commercial

When reading the applications of foreclosure fell 10% in January from December, and not too emotional. According to Realty Trac, Foreclosures are at a 15% higher than a year ago and is likely to increase in the activity of executions in the coming months, as shit government program modification of the mortgage remains to failure.

James J. Saccacio, CEO of RealtyTrac noted that “if history repeats itself we will see an increase in number in coming months as lenders exclude loans in arrears or that the modification of existing loan programs or write new venda uncovered on-site works foreclosure alternatives. “In other words, another storm is brewing-the housing market.

The continuing reluctance of banks to tackle the problem of exclusion is surprising. There is almost universal agreement that the reduction of capital is the key, but we are left with lame programs, as announced this yesterday CitiMortgage. The so-called “strategic rather than exclusion,” continues “and pretend to extend” policy that bank lenders have pursued over the last year.

From the banks' point of view, the longer it remains on the hook, it is best for them. Avoid clutter of exclusion that allows them to maintain the fictitious valuations on their books and this new program from Citi, says that some of the costs of carrying the loan funds are transferred without the borrower, which in all probability, will eventually breach . Some experts believe that a new round of foreclosure would cause a double drop in housing prices.

As if the mess of exclusion were not sufficient to keep him in the night, now we are also digesting a new report by the Congressional Oversight Group (which Elizabeth Warren & Co., guard dogs TARP) on the storm coming in commercial real estate market. The report predicts a wave of losses, a total of $ 200 – $ 300 million, commercial real estate loans may “cause economic damage that could touch the lives of nearly all Americans.”

Here's how extreme analysis plays out: &# 8220, when no commercial properties, creating a downward spiral of economic contraction: the loss of jobs, deteriorating facades of shops, office buildings and apartments, and the failure of banks that provide service to these communities. “The report reminds us that the failure of community banks may further restrict access to capital for small businesses, the economic recovery is taking place.

Not even two blades keep potential storms might come.