patrick.net

Does anyone know what the foreclosure count is for San Jose/Santa Clara?

I would be really interested.

Why is this so easy to find homes for sale for free and all foreclosure listing sites demand payment?

Sorry Claire --check the newslinks on Patrick's main page, might be something there.

Now, can anyone tell me why this makes sense?
Federal Reserve says super SIV requiress less capital

WASHINGTON, Nov 2 (Reuters) - Banks that back a proposed new multi-billion dollar investment fund that may purchase risky mortgage-related assets will need only one tenth of the capital they would need if they were to take the assets onto their own balance sheets, the Federal Reserve has said.

Hmmm... let me get this straight. The toxic waste the banks are holding in the form of MBSs CDOs & various other NINJA-mortgage derivatives is so radioactive, they have to get it off their own books ASAP and dump it in this wonderful new 'mark-to-myth' creation of financial alchemy, known as a 'Super-SIV' or M-LEC.

So, given that the M-LECs are full of toxic waste by definition (the very reason they were created in the first place is to house non-performing toxic loans/derivatives off bank balance sheets), the Fed figures they're so safe they only need 1/10th of the reserve capital needed if they stayed on the banksters' own books.

Huh??

HARM,
Don't you realize that the "Superfund" is a big huge, stinking con game?

It's nothing more than a bunch of banks up $hit's creek trying to get rid of these bad, bad instruments on their "off balance sheets". So, they come up with a great idea of putting in some chump change, slapping the "Citi" or whatever label on them, and hoping that suckers, er, investors, buy them becuase these banks have a good reputation. All this with the blessing of Hank Paulson.

Well, seeing how Citi is in deep doo-doo, doesn't seem like their "plan" is going to quite work, is it?

@skibum,

Sounds pretty cool --where can I get me some? Can I buy them through my 401k?

Time to start taking out unsecured loans & CCs from Citibank I guess. Doesn't look like they'll be around long enough to collect.

skibum :

I have often wondered if this whole Superfund is just a mental game. I don't think there will be a Superfund. It's just a charade. Just a feeble (and unsuccessful) attempt to show investors that, nothing to worry, these assets will be taken by a Superfund.

Based on the Citi's stock, no one is buying that. (Pun intended)

Completely OT.

I know some people here like photography a lot.

http://sawse.com/2007/11/02/25-photographs-taken-at-the-exact-right-time/

I suspect some are from Video camera and some might be doctored. But nice to look at.

Claire:

Does this help?

http://bubbletracking.blogspot.com/2006/12/tracking-foreclosures-and-pre.html

HARM :

On topic. It still seems like yesterday to me. After having suffered through years of boasting no how people struck a goldmine in their backyard, the quietness of last 12 months is not long enough.

After having lost serious money in dot com, I used to participate in similar discussions - "My loss is bigger than yours". It was a way of trying to laugh away your problems, some consolation.

I bet those days are returning to the savvy people who won the bidding wars.

Thanks Random User

from that site: first number foreclosures, second number pre-foreclosures

Santa Clara County
10/31/06: 79/1,293 (6.1%)
11/30/06: 101/1,347 (7.5%)
12/30/06: 119/1,195 (10.0%)
01/30/07: 140/1,205 (11.6%)
02/27/07: 161/1,217 (13.2%)
03/30/07: 201/1,253 (16.0%)
04/30/07: 313/1,402 (22.3%)
05/30/07: 392/1,554 (25.2%)
06/30/07: 503/1,698 (29.6%)
07/30/07: 473/1,771 (26.7%)
09/07/07: 534/1,972 (27.1%)
09/30/07: 638/2,106 (30.3%)
10/31/07: 658/2,243

People are starting to fold!

The fund will require a government subsidy and will eventually become part of the national balance sheet. It will then just become part of the national debt.

These types of insane measures would normally cause partisan outcry, but the silence and subtle head nodding by the feds is more frightening. It is worrisome because we can start inferring from this appeasement that the situation has become so grave, policymakers are starting to resemble crack addicts.

I have often wondered if this whole Superfund is just a mental game. I don’t think there will be a Superfund. It’s just a charade.

Superfund is already in Silly.con Valley:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2004/01/30/BUGCJ4JS7N1.DTL

@HARM,

I believe it means the entire financial system is facing solvency issues with major players potentially failing. The FRB is scared to death now.
Northern Rock was just a precusor of many bad things to come to their country and ours.

For humanity sake I hope I am entirely wrong!

The crash is only just beginning.........

Paul I hope you are wrong and I am wrong, but I have a feeling we're not wrong....

Paul and Ex,

You are not wrong.
There is a massive leverage unwind that will roild the financial markets.
That problem will cause massive local polical fall-out. I would say protectionism and massive governement regulation are two obvious outcomes.

Uhg!

Iran is next, I guess.

They will kick our asses.

Well this time it's a credit union that has folded:
www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/11/04/BA7FT67CK.DTL

"The weight of defaults on real estate loans has forced the Bay Area-based Cal State 9 Credit Union into federal conservatorship.

The state Department of Financial Institutions announced late Friday that it was putting the National Credit Union Administration - the federal agency that regulates and insures credit agencies - in charge of Cal State 9 operations. "

Bap33 if I understant correctly, how it works right now is you walk away from your stucco shitbox and if the debt is forgiven, you have to declare it as income and pay tax on it.

Talk about a way to hit someone who's down, kicking the wounded is after all The American Way.

I think by the time the FB has walked away from their stucco shitbox, they've likely sold the widescreen TV, the Harley, the jet-skis, etc. They've usually lost their job, health, spouse, maybe all three. The owed tax on the "income" will end up being defaulted on also. This just results in a few years' worth of paperwork and wrangling for the IRS, for no return.

I personally hope the bill passes. Yeah a few will scam the system but they will be a tiny minority in this Greatest Depression we're just entering.

ex-sunnyvale-renter

I am not sure it is going to work the way you think it will. Many loans were taken out with piggy back on top of the main mortage. These people who end up in foreclosure will still be liable for these piggy back loans even after the home is sold. The bank will graciously let you convert the Heloc loan into a line of credit at a higher interest rate. There is no escape for many people. The new bankrupcy laws will make this worst than in years past.

The main morgage will be taken care of with the sale at the sheriff's auction. If the home was bought with an 80/20 loan, the bank will get the money. Even with a 20% hair cut on the home price, the bank will break even on the main loan. This leaves the poor FBers in ruin as debt serfs.