Comments on: Nearly Half Of All Homes Sold Are Foreclosures http://www.realestateradiousa.com/2008/12/21/nearly-half-of-all-homes-sold-are-foreclosures/ Internet Money! Money On The Internet! Fri, 30 Jul 2010 03:52:09 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Real Estate Short Sale Key To Market Normality Says NAR | Real Estate Radio USA http://www.realestateradiousa.com/2008/12/21/nearly-half-of-all-homes-sold-are-foreclosures/comment-page-1/#comment-3622 Real Estate Short Sale Key To Market Normality Says NAR | Real Estate Radio USA Tue, 06 Jan 2009 23:34:41 +0000 http://www.realestateradiousa.com/blog/?p=12174#comment-3622 [...] inventory that is slated to increase exponentially over the next 18 months and is responsible for nearly half of ALL sales being foreclosures or short sales and you are playing house on social media forums talking about baking friggin [...] [...] inventory that is slated to increase exponentially over the next 18 months and is responsible for nearly half of ALL sales being foreclosures or short sales and you are playing house on social media forums talking about baking friggin [...]

]]> By: Real Estate Short Sale Key To Market Normality Says NAR | Real Estate Radio USA http://www.realestateradiousa.com/2008/12/21/nearly-half-of-all-homes-sold-are-foreclosures/comment-page-1/#comment-3623 Real Estate Short Sale Key To Market Normality Says NAR | Real Estate Radio USA Tue, 06 Jan 2009 23:34:41 +0000 http://www.realestateradiousa.com/blog/?p=12174#comment-3623 [...] inventory that is slated to increase exponentially over the next 18 months and is responsible for nearly half of ALL sales being foreclosures or short sales and you are playing house on social media forums talking about baking friggin [...] [...] inventory that is slated to increase exponentially over the next 18 months and is responsible for nearly half of ALL sales being foreclosures or short sales and you are playing house on social media forums talking about baking friggin [...]

]]> By: Chris Whittaker http://www.realestateradiousa.com/2008/12/21/nearly-half-of-all-homes-sold-are-foreclosures/comment-page-1/#comment-3574 Chris Whittaker Tue, 23 Dec 2008 05:58:05 +0000 http://www.realestateradiousa.com/blog/?p=12174#comment-3574 I agree with the above comments and add two more concerns that are unmeasureable. We have no data for the number of homeowners that have money in the bank and excellent FICO scores but are frustrated by seeing home values in their neighborhood plummeting. There will be scores of these owners that buy something for less (possibly smaller, more manageable properties since I think there's a greater consciousness towards living below our means again), and let their property go. There's also the "small business owners" or business owners in general that will consider their home an investment and wake up one day and ask themselves, "why am I throwing good money at bad?" As one of my colleagues in the industry says, "Would you go to work everyday and not get paid?" I'm not saying I agree or condone this belief, but I would guarantee there's people that think and act this way right now. I agree with the above comments and add two more concerns that are unmeasureable. We have no data for the number of homeowners that have money in the bank and excellent FICO scores but are frustrated by seeing home values in their neighborhood plummeting. There will be scores of these owners that buy something for less (possibly smaller, more manageable properties since I think there’s a greater consciousness towards living below our means again), and let their property go. There’s also the “small business owners” or business owners in general that will consider their home an investment and wake up one day and ask themselves, “why am I throwing good money at bad?” As one of my colleagues in the industry says, “Would you go to work everyday and not get paid?” I’m not saying I agree or condone this belief, but I would guarantee there’s people that think and act this way right now.

]]> By: Prof. Samuel D. Bornstein http://www.realestateradiousa.com/2008/12/21/nearly-half-of-all-homes-sold-are-foreclosures/comment-page-1/#comment-3561 Prof. Samuel D. Bornstein Mon, 22 Dec 2008 17:33:24 +0000 http://www.realestateradiousa.com/blog/?p=12174#comment-3561 Barry, It would be my pleasure to speak on this upcomimg nightmare that few see. There is an expression that I always present to my classes... "You only see what you know". Barry,
It would be my pleasure to speak on this upcomimg nightmare that few see. There is an expression that I always present to my classes… “You only see what you know”.

]]> By: Barry Cunningham http://www.realestateradiousa.com/2008/12/21/nearly-half-of-all-homes-sold-are-foreclosures/comment-page-1/#comment-3560 Barry Cunningham Mon, 22 Dec 2008 17:03:30 +0000 http://www.realestateradiousa.com/blog/?p=12174#comment-3560 Professor Bornstein this is absolutely stunning data. I will use it to frame another story around. Would love to speak with you next week for more data on this developing nightmare. Professor Bornstein this is absolutely stunning data. I will use it to frame another story around. Would love to speak with you next week for more data on this developing nightmare.

]]> By: Prof. Samuel D. Bornstein http://www.realestateradiousa.com/2008/12/21/nearly-half-of-all-homes-sold-are-foreclosures/comment-page-1/#comment-3553 Prof. Samuel D. Bornstein Sun, 21 Dec 2008 22:26:41 +0000 http://www.realestateradiousa.com/blog/?p=12174#comment-3553 I would like to bring a very important NASE survey finding to the attention of all. I have been trying to bring this to the attention of Washington because they must address the following topic as quickly as possible. This relates to the upcoming wave of Foreclosures in 2009 that are due to the resetting of the “Toxic” mortgages. Many fail to realize that there are millions of self-employed smaller businesses, who employ from 1-10 employees, that are holding these risky mortgages. So, here we have a major problem… Not only will these small business owners lose their homes, but there will be the resulting JOB LOSSES on their business failure. Note, although President-Elect Obama is stressing the need to create 3 million new jobs, we must understand that “JOB RETENTION IS AS IMPORTANT AS JOB CREATION”. Our priority should be to be PROACTIVE in addressing these small business owners’ need to avoid defaulting on their mortgages. They require “Immediate and Specific Financial Guidance” to weather this storm. The 2nd Wave of Foreclosures has made it to the mainstream Media. CBS’s 60 Minutes had a segment on 12/14/08, but they missed a very important point. Here is a post which may have merit for your blog……. I would like to bring a very important bit of information to your attention that relates to this economic crisis that was overlooked until now. On Sunday, 12/14/08, CBS 60 Minutes aired a segment “The Mortgage Meltdown”. Scott Pelley’s piece on the 2nd Wave of Foreclosures overlooked a critical fact. The segment missed the fact that this next wave of Foreclosures in 2009 Will Take Self-Employed and Smaller Businesses who have these TOXIC mortgages. In fact, ALT-A, Option ARMS, Interest-Only, the TOXIC Mortgages that are considered the “Troubled” assets in TARP were specifically marketed to the self-employed who fell prey to them. The upcoming defaults on these risky “Toxic Mortgages” will result in an increase in foreclosures. But worse, once these small businesses fail, the resulting loss of jobs will cause millions to add to the ranks of the unemployed. Note that self-employed business owners (16.2 million according to the SBA) employ between 1-10 employees. An NASE survey at http://www.nase.org , was the first to provide compelling evidence of small business involvement in the upcoming toxic mortgage crisis. The survey was created by Prof. Samuel D. Bornstein and Jung I. Song, CPA of BornsteinSong Consultants in Oakhurst,NJ,and was conducted by the National Association for the Self-Employed (NASE) which issued a Press Release on November 21, 2008. According to this survey, it is estimated that 3,709,800 small business owners hold Alt-A and other toxic mortgages, and 1,279,800 are already delinquent as they have missed one to three or more monthly mortgage payments at mid-November, before the expected Resets that are scheduled to begin in 4th Quarter 2008 through 2012. These small business owners will be at-risk of payment shock and default as their monthly mortgage payments skyrocket. Small business owners were especially targeted for these Alt-A loans which required little or no documentation of income which appealed to many small business owners who previously were unable to qualify. The resulting defaults will be the cause of the upcoming second tsunami wave of foreclosures that will dwarf the subprime crisis and will take many homeowners, small business owners, and their employees at this critical time when our economy can ill afford it. Thank you, Samuel D. Bornstein Professor of Accounting & Taxation Kean University, School of Business, Union, NJ I would like to bring a very important NASE survey finding to the attention of all. I have been trying to bring this to the attention of Washington because they must address the following topic as quickly as possible.

This relates to the upcoming wave of Foreclosures in 2009 that are due to the resetting of the “Toxic” mortgages.

Many fail to realize that there are millions of self-employed smaller businesses, who employ from 1-10 employees, that are holding these risky mortgages. So, here we have a major problem… Not only will these small business owners lose their homes, but there will be the resulting JOB LOSSES on their business failure. Note, although President-Elect Obama is stressing the need to create 3 million new jobs, we must understand that “JOB RETENTION IS AS IMPORTANT AS JOB CREATION”.

Our priority should be to be PROACTIVE in addressing these small business owners’ need to avoid defaulting on their mortgages. They require “Immediate and Specific Financial Guidance” to weather this storm.

The 2nd Wave of Foreclosures has made it to the mainstream Media. CBS’s 60 Minutes had a segment on 12/14/08, but they missed a very important point. Here is a post which may have merit for your blog…….

I would like to bring a very important bit of information to your attention that relates to this economic crisis that was overlooked until now.

On Sunday, 12/14/08, CBS 60 Minutes aired a segment “The Mortgage Meltdown”.

Scott Pelley’s piece on the 2nd Wave of Foreclosures overlooked a critical fact.

The segment missed the fact that this next wave of Foreclosures in 2009 Will Take Self-Employed and Smaller Businesses who have these TOXIC mortgages. In fact, ALT-A, Option ARMS, Interest-Only, the TOXIC Mortgages that are considered the “Troubled” assets in TARP were specifically marketed to the self-employed who fell prey to them.

The upcoming defaults on these risky “Toxic Mortgages” will result in an increase in foreclosures. But worse, once these small businesses fail, the resulting loss of jobs will cause millions to add to the ranks of the unemployed. Note that self-employed business owners (16.2 million according to the SBA) employ between 1-10 employees.

An NASE survey at http://www.nase.org , was the first to provide compelling evidence of small business involvement in the upcoming toxic mortgage crisis. The survey was created by Prof. Samuel D. Bornstein and Jung I. Song, CPA of BornsteinSong Consultants in Oakhurst,NJ,and was conducted by the National Association for the Self-Employed (NASE) which issued a Press Release on November 21, 2008.

According to this survey, it is estimated that 3,709,800 small business owners hold Alt-A and other toxic mortgages, and 1,279,800 are already delinquent as they have missed one to three or more monthly mortgage payments at mid-November, before the expected Resets that are scheduled to begin in 4th Quarter 2008 through 2012.

These small business owners will be at-risk of payment shock and default as their monthly mortgage payments skyrocket. Small business owners were especially targeted for these Alt-A loans which required little or no documentation of income which appealed to many small business owners who previously were unable to qualify.

The resulting defaults will be the cause of the upcoming second tsunami wave of foreclosures that will dwarf the subprime crisis and will take many homeowners, small business owners, and their employees at this critical time when our economy can ill afford it.

Thank you,

Samuel D. Bornstein
Professor of Accounting & Taxation
Kean University, School of Business, Union, NJ

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