First Half Foreclosures, Recovery Signs and Commercial Loans

First Half 2009 Foreclosure Numbers No Surprise
July 30, 2009

Las Vegas (7.5%) and Cape Coral-Fort Myers (7.2%) led the way in foreclosures during the first two quarters this year, according to this week’s RealtyTrac report. CEO James Saccachio noted that new cities like Provo and Boise have seen large increases as some of last year’s hardest hit saw some bottomed out a bit.

Kentucky Takeaway: With Louisville ranking #131 and Lexington ranking #182 on the list of metropolitan areas hardest hit by foreclosure, the closest hot spot is really Cincinnati at #73. All in all, it could be worse.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aZejjD7U1FNw


Inman’s Look at 2009’s First Half
July 30, 2009

As noted repeatedly in earlier Uvestor reports, RealtyTrac CEO James Saccacio notes that unemployment is now the main foreclosure factor rather than the subprime and adjustable-rate mortgages that triggered the crash. That has led to an overall shift in where foreclosures are happening. Essentially, follow the unemployment numbers to get a clear picture.

Kentucky Takeaway: Kentucky has double-digit unemployment, which will lead to some stress on homeowners. The state emerged from the first wave of foreclosures in relatively good shape, though, so 2009 may seem worse by comparison.
http://www.inman.com/news/2009/07/30/foreclosures-not-same-old-story


What The Housing Bottom Means To You
July 30, 2009

This article points out that not only are those who speculate on the housing market usually biased in some way, they also are not always talking about the same thing. For example, though we may already have found a housing sales bottom, we may not necessarily have found a corresponding bottom in housing prices.

Kentucky Takeaway: Though buyers have reentered the market, the supply may dictate that prices keep coming down for a good while.
http://seekingalpha.com/article/152476-has-the-housing-market-hit-bottom


Signs Of Recovery In Housing Market
July 29, 2009

According to the Lender Processing Services Mortgage Monitor, June saw some positive housing market indicators. New delinquencies were down. Loans by and large did not roll over to more delinquent statuses. Good loans are catching up with bad loans, and new originations were up over last year for the first half of 2009.

Kentucky Takeaway: Low rates, more available credit, and federal aid have all helped bolster a market that has struggled mightily and will continue to do so for 2009. Kentucky generally remains more stable than a lot of other states.
http://nationalmortgageprofessional.com/news13071/lps-report-shows-signs-life-us-housing-market


$2.2 Trillion On The Line
July 29, 2009

The past five years have not been good to commercial property values and now threaten to create an all new foreclosure epidemic, this according to a report released by Real Capital Analytics. $2.2 trillion of property values have decreased in the past five years since they were bought, creating a concerning gulf in equity. These numbers even exclude hotels, which certainly are in rough shape, as well.

Kentucky Takeaway: The most striking part of the article may be the idea that “pretend and extend” is now becoming a commonplace phrase, as lenders are slow to take action against commercial owners. As unemployment goes, so will a number of commercial ventures, and Kentucky is certainly not immune to that risk.
http://www.bloomberg.com/apps/news?pid=20601087&sid=agyb1t2XNasM