{"id":6124,"date":"2008-12-13T14:10:21","date_gmt":"2008-12-13T21:10:21","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=6124"},"modified":"2008-12-13T14:10:23","modified_gmt":"2008-12-13T21:10:23","slug":"for-some-the-most-financially-astute-course-of-action-may-be-to-fake-their-way-to-foreclosure","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6124\/for-some-the-most-financially-astute-course-of-action-may-be-to-fake-their-way-to-foreclosure\/","title":{"rendered":"For some, the most financially-astute course of action may be to fake their way to foreclosure"},"content":{"rendered":"

This is my column for this week from the Arizona Republic<\/i> (permanent link<\/a>).<\/p>\n

 
For some, the most financially-astute course of action may be to fake their way to foreclosure<\/strong><\/p>\n

Looking for some good news in the Phoenix residential real estate market? So is everyone else.<\/p>\n

New foreclosures are down, as are new foreclosure filings. Lenders are working with homeowners to help them stay in their homes, just in time for Christmas. That’s good news right?<\/p>\n

Maybe. It turns out that, of the folks who negotiated loan workouts in the first quarter of 2008, 60% are back in default on their loans.<\/p>\n

It gets worse. The typical newer stucco and tile West Valley tract home lost 7.41% of its value. In November. Year-over-year, that house is down 35.46%. Compared to its high in December of 2005, that property is down 48%.<\/p>\n

Now there is a silver lining. If you bought your home in 2003 or before, and if you have resisted the impulse to refinance it, you’re probably still ahead of the game, at least by a little bit. And with interest rates at historic lows, this might be the time, finally, to refinance to lower payment.<\/p>\n

And investors and first-time homebuyers could not have things better: The selection of available homes is still very broad, prices are below replacement costs, and interest rates are deliciously low.<\/p>\n

Better news — for people who don’t own homes: Prices could go a lot lower, and interest rates could drop even more.<\/p>\n

But what, then, is the implication for loan workouts? Until home prices stabilize and start to rise again, a loan workout against substantial negative equity might not make the best financial sense.<\/p>\n

As we talked about last week, the hit on your credit rating from a foreclosure is a terrible thing. But it’s plausible to me that you could recover from that faster than your home will once again be worth what you’re paying for it.<\/p>\n

And that’s the worst news of all: We have mismanaged our economy so dreadfully that, for many people, the most financially-astute course of action they can take is to pretend to be deadbeats, to fake their way to Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column for this week from the Arizona Republic (permanent link).  For some, the most financially-astute course of action may be to fake their way to foreclosure Looking for some good news in the Phoenix residential real estate market? So is everyone else. New foreclosures are down, as are new foreclosure filings. Lenders […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,5],"tags":[],"class_list":{"0":"post-6124","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-marketing","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":680,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/680\/amazingly-low-foreclosure-rate-at-a-two-year-high\/","url_meta":{"origin":6124,"position":0},"title":"Amazingly low foreclosure rate at a two year high . . .","author":"Greg Swann","date":"November 25, 2006","format":false,"excerpt":"It's Saturday, the Arizona Republic's favorite day to piss on the real estate market. Today ace reporter Catherine Reagor informs us that foreclosures are up. \"By how much?\" you ask. You don't read the Republic much, do you? Instead of actual numbers we get all manner of obfuscation, scary anecdotes,\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5965,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5965\/seriously-whos-a-better-risk-for-a-mortgage-than-someone-who-has-already-lost-a-home-to-foreclosure\/","url_meta":{"origin":6124,"position":1},"title":"Seriously,\u00a0who’s a better risk for a mortgage than someone who has already lost a home to foreclosure?","author":"Greg Swann","date":"December 6, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Seriously, who's a better risk for a mortgage than someone who has already lost a home to foreclosure? We talked last week about credit flexibility among merchants as they try to find ways around the banking crunch.\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5613,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5613\/a-workout-loan-can-be-a-win-win-solution-to-avoiding-foreclosure\/","url_meta":{"origin":6124,"position":2},"title":"A workout loan can be a win-win solution to avoiding foreclosure","author":"Greg Swann","date":"November 15, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0A workout loan can be a win-win solution to avoiding foreclosure We talked last week about lender \"workout\" loans -- a scheme lenders have come up to keep homes from falling into foreclosure. The premise is simple:\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5199,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5199\/foreclosure-homes-are-sold-as-is-but-most-need-only-minor-restoration-to-bring-them-back-to-fully-livable-condition\/","url_meta":{"origin":6124,"position":3},"title":"Foreclosure homes are sold “as-is” — but most need only minor restoration to bring them back to fully-livable condition","author":"Greg Swann","date":"October 25, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Foreclosure homes are sold \"as-is\" -- but most need only minor restoration to bring them back to fully-livable condition If we were to have a contest for the Valley's most-gutted home, judging might take a while. A\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4418,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4418\/fannie-and-freddie-fall-to-foreclosure-but-still-lenders-lend\/","url_meta":{"origin":6124,"position":4},"title":"Fannie and Freddie fall to foreclosure, but, still, lenders lend","author":"Greg Swann","date":"September 14, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Fannie and Freddie fall to foreclosure, but, still, lenders lend I write this column at the beginning of the week, and it appears at the end of the week. My topics are usually timeless, but, if I\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13385,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13385\/bofa-is-back-in-the-foreclosure-business\/","url_meta":{"origin":6124,"position":5},"title":"BofA is back in the foreclosure business…","author":"Greg Swann","date":"October 18, 2010","format":false,"excerpt":"Wall Street Journal. Flip side: Pimco, NY Fed Said to Seek BofA Repurchase of Mortgages.","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=6124"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6124\/revisions"}],"predecessor-version":[{"id":6125,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6124\/revisions\/6125"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=6124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=6124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=6124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}