Coganomics: Recession is OVER!!!!(Series-20)
Now, Today’s August 13, 2009 ….
Did you hear the freak’en awesome news? We’re out of the recession! YIPPIEEE… Or at least that’s what the major media outlets and the Federal Reserves seem to be telling us today, right now. Yet the same media outlets are telling us that foreclosures are still a plague and are occurring at, once again, a record pace.
That’s right. For instance there was 360,000 workers foreclosure filings in July and that’s an increase of 7% since June, and a 32% increase from July of 08 according to RealtyTrac. Now right now, one in every 355 homes have had at least one filing during the month of July, alone. Further, through the end of July, there has been over 464,000 actual foreclosures; meaning these guys had to pack their crap and hit the streets. And as foreclosures just speed up, talk of recovery just seems a little overly optimistic to us.
U.S. home loans failed at a record pace in July despite ongoing federal and state programs to avoid foreclosures, which have severely strained housing and the economy.
Foreclosure activity jumped 7 percent in July from June and 32 percent from a year earlier as one in every 355 households with a loan got a foreclosure filing, RealtyTrac said on Thursday. Filings — including notices of default, auction and bank repossession — have escalated with unemployment.
Listen. Most of these major media outlets are talking about foreclosures picking up speed in a surprised tone; and I’ve been saying it over the past year that this whole thing was inevitable. I really saw it coming. I”ve talked about the desire of first Bush Administration, but even more so the Obama Administration’s desire to keep more of the houses regardless of the homeowners’ desire to make the payments.
I’ve talked about State and Federal Moratorium foreclosures — There’s been cases across the country where sheriffs won’t follow through with their convictions and in some instances, judges won’t follow through with the letter of the Law. I also brought you stories where lender didn’t even want to foreclose on properties, because the city and county paid fines that were imposed on them that were just too high for them to pay. Simply put, it was easier just to let them, the people, live there instead of kicking them out.
I also brought you new language over the last year. The big one being “RE-Modification” and then “RE-RE-Modification,” and those terms didn’t even exist 5 years ago. Everything I just stated is an example of people not making their house payments. That’s it. And when people don’t make their house payments, you will eventually have to foreclose on them. That’s it. Plain and simple!
I”ve seen and talked about this extensively over the past year and it really isn’t a secret to anyone. In fact, I think that most of you are aware of what’s going on here. It’s just surprising to me to see the largest media outlets out there acting surprised. You know, I’ve been accused lately, a little bit, by some people of being negative, but it’s not that I’m trying to be negative. I’m not trying to do that at all. I’m just being real in our opinion.
OTHER NEGATIVE STORY =)
This just in! Retail sales posted a surprising drop. Retail sales unexpectedly fell in July from June. The Commerce Department says that sales edged out 1% by revised income, increased from June 1.8%. It is expected a pretty hefty increase of 0.7%, but got it all wrong. Go figure, and not surprisingly, the first time jobless claims also unexpectedly rose to the final 158,000. These numbers seem to go hand in hand with retail sales. You know, you’d think Bernanke would’ve snuck a peek at these numbers before his decree yesterday.
Bad retail sales mean more inventory, which means lower prices for you and I. And first time jobless claims? Well, that’s just more time to polish up the old resume find a better job!
WASHINGTON – Retail sales disappointed in July and the number of newly laid-off Americans filing claims for unemployment benefits rose unexpectedly last week. The latest government reports reinforced concerns about how quickly consumers will be able to contribute to a broad economic recovery.
“There is really no positive spin to put on these numbers,” Jennifer Lee, an economist with BMO Capital Markets, wrote in a research note. “The U.S. consumer remains very weak. The jobs situation, while slowly improving, is still dismal.”
Quick Short Sale Tips & Tricks:
Close out your clients loan modification file before you submit your short sale package. Remember – lenders will not work on both a loan modification and a short sale at the same time. It’s either one or the other.
Tags: foreclosure moratorium, jeff coga, reail sales drop, record foreclosure, record loan failure, Short Sale Samurai, short sale tips and tricks, Unemployment Rate
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