2007 USA Realty Meltdown

(CNBC)Financials have taken a big hit related to subprime problems, but now it's looking like no firm is safe — the mortgage mess is now having an impact on a number of other sectors. They're not taking multi-billion-dollar charges like the financial firms, but plenty of companies in industries ranging from pharma to tech are getting pinched by subprime. And they're getting pinched where they'd least expect it — in their cash accounts. These firms bought auction-rate securities — bonds created from pools of long-term debt. They don't pay a fixed rate, rather a lower, rolling rate that's reset through a Dutch auction every ... Read Full Story

Dear Banks, The streets are full of your irresponsible lending practices. When checking the MLS this evening and pulling up homes built from 2004 till now in just Sacramento County , there were 182 homes listed as short sales . This figure doesn’t account for those homes that have already been repossessed and are now owned by the Bank, nor does it account for the homes that you have sold when hiring an auction company. The figure only accounts for today’s actively listed houses that are new and in short sale . The families that bought these homes bought them in good faith, thinking ... Read Full Story

I have been predicting that this would occur.  This week's report on the huge down swing in retail sales with normally strong retailers like Wal-Mart, Target, Macy's, etc. has the analysts on Wall Street beginning to see the possibility of the R word - recession before the end of 2007. It is my contention as a former econ college student that the slow down of homes across the USA has caused the Domino Effect that we learned could occur.  Would you agree? Read Full Story

October's home sales numbers are certainly no surprise. Santa Maria and Lompoc have been experiencing foreclosures and REO sales that have been inhibiting the number of real estate sales in these areas. There were 95 sales recorded this year compared to 133 sales in October of 2006. That is over a 28% decrease in home sales. Lompoc was hit the hardest with only 22 sales this year compared to 53 in October of 2006. Santa Maria was pretty close to last years number of 80, there were 73 for October 2007. In looking at the November and December numbers the last few years there ... Read Full Story

Yes, with the gas prices shooting out of sight and closer and closer to $4 per gallon people are looking at ways to cut back so they can continue to drive their vehicles.  I predict that we will see a spike in late mortgage payments as they begin to juggle their money. Hey watch out Starbucks! People may also for go those expensive lattes! Read Full Story