Seems all are not doing as well your area
Million Dollar Homes in Foreclosure
November 16, 2006
As previous downturns in the real estate cycle have proven, foreclosure can reclaim a home no matter where it is located, what price range it falls into, or the income bracket of the owner. Although it may be hard to believe, even celebrities are not immune from defaulting on loans.
Over the past five years, home prices have appreciated at double-digit rates and many homebuyers have taken on more risky loans just to enter the market. The activity level in the housing market was a key economic driver during that time as well.
The housing market surged to such a crescendo, in fact, that it overheated the economy and the Federal Reserve had to step in - raising short-term interest rates for 17 consecutive months beginning in June 2004. It took until August of this year before the Fed put the brakes on further rate increases. Taking a wait and see stance on further increases - due in large part to a "cooling of the housing market" - Fed Chairman Ben Bernanke is taking his time to observe and analyze the outcome of his agency's actions.
In the meantime, as inflation continues to be a worrisome consideration in the future actions of the Fed, homeowners who took out so-called "exotic" adjustable-rate mortgages such as interest-only and option loans are running for cover, looking to refinance to some other loan product - be it fixed-rate or otherwise - in hopes of avoiding foreclosure as interest rates reset on up to an estimated $1 trillion of such loans over the next couple of years. For homeowners who may be stuck paying up to 50 percent more on their mortgage payments when their interest rate resets, foreclosure may be the only alternative available, whether the home is a million-dollar property or not.
Now with the housing market slowing and interest rates rising, many homeowners are paying higher monthly payments for a house that is not appreciating rapidly and could take a long time to sell given the large inventory of homes for sale. Those market conditions mean it's easier than ever to locate bargains - even on high-end homes. RealtyTrac's national database includes many homes worth a million dollars or more that are in some stage of foreclosure and could be excellent purchase opportunities for both real estate investors and potential homebuyers looking for the American dream of homeownership at a more affordable price.
and then this company does not feel good about this so called boom either
Countrywide says housing slump has a year to go
Tuesday November 14, 1:00 pm ET
NEW YORK (Reuters) - The slowdown of the U.S. housing market will last through 2007 as inventories are pared enough to prompt a change in consumer psychology, the chief executive officer of the nation's biggest mortgage lender said on Tuesday. }
Mortgage lending has slowed as rising inventories in the housing market led to a "hard landing" for the industry after a decade of strong growth, Countrywide Financial Corp. (NYSE:CFC
) CEO Angelo Mozilo said at a Merrill Lynch & Co. conference in New York.
"We have another year of adjustment, or transition" in the industry until consumers believe home prices won't decline, Mozilo said. "Various events will make the change take place and one of them is" a decline in available homes, he said.
Mozilo said he expects the industry will see lending volume grow progressively from 2008 to 2010 because of a build-up of demand. Until then, the industry will continue to consolidate and eliminate excess capacities.
Calabasas, California-based Countrywide last week said it has funded $375 billion in residential mortgage loans in the year through October, down 7 percent from the same period of 2005. Its pipeline of mortgages that haven't yet closed totaled $61 billion in October, down 14 percent from a year earlier.
Countrywide has also said it would trim more than $500 million of annual costs by year end, in part by firing more than 2,500 employees.