Comments on: The Treacherous Path for Housing – 42 Percent of California Mortgages with Negative Equity: $1 Trillion in Mortgages Submerged Underwater in California. $3 Trillion in U.S. Mortgages Underwater and Risking Foreclosure. http://www.doctorhousingbubble.com/real-estate-the-treacherous-path-for-housing-42-percent-of-california-mortgages-with-negative-equity-1-trillion-in-mortgages-submerged-underwater-in-california-3-trillion-in-us-mortgages-underwater-an/ How I Learned to Love Southern California and Forget the Housing Bubble Thu, 09 Feb 2012 15:03:51 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Robert http://www.doctorhousingbubble.com/real-estate-the-treacherous-path-for-housing-42-percent-of-california-mortgages-with-negative-equity-1-trillion-in-mortgages-submerged-underwater-in-california-3-trillion-in-us-mortgages-underwater-an/#comment-38919 Robert Wed, 19 Aug 2009 23:00:02 +0000 http://www.doctorhousingbubble.com/?p=2190#comment-38919 Bankruptcy filings per quarter for California: 2001 38,543 42,616 35,485 33,819 2002 37,510 38,411 37,032 36,897 2003 36,622 38,052 34,511 32,417 2004 32,863 32,638 29,927 27,050 2005 29,593 35,812 43,358 57,946 2006 6,543 9,704 10,983 12,055 2007 15,041 17,050 18,778 21,758 2008 25,727  32,387  37,083 38,011 2009   42,992 53,505  The spike at the end of 2005 and subsequent plunge are due to the bankruptcy law reform at the end of 2005 that made it much more difficult to file for personal bankruptcy to escape your debts. People with disposable income were allowed to keep their assets but still had to repay their debts - you can see how appealing this option was! How about "Bankruptcies up 717%" for a headline? Bankruptcy filings per quarter for California:

2001 38,543 42,616 35,485 33,819
2002 37,510 38,411 37,032 36,897
2003 36,622 38,052 34,511 32,417
2004 32,863 32,638 29,927 27,050
2005 29,593 35,812 43,358 57,946
2006 6,543 9,704 10,983 12,055
2007 15,041 17,050 18,778 21,758
2008 25,727  32,387  37,083 38,011
2009   42,992 53,505 

The spike at the end of 2005 and subsequent plunge are due to the bankruptcy law reform at the end of 2005 that made it much more difficult to file for personal bankruptcy to escape your debts. People with disposable income were allowed to keep their assets but still had to repay their debts – you can see how appealing this option was!

How about “Bankruptcies up 717%” for a headline?

]]> By: Hap Hazard http://www.doctorhousingbubble.com/real-estate-the-treacherous-path-for-housing-42-percent-of-california-mortgages-with-negative-equity-1-trillion-in-mortgages-submerged-underwater-in-california-3-trillion-in-us-mortgages-underwater-an/#comment-38918 Hap Hazard Wed, 19 Aug 2009 22:41:47 +0000 http://www.doctorhousingbubble.com/?p=2190#comment-38918 In California, it doesn't matter if a bank characterizes a loan as a non-recourse loan. If the loan was made at the time of the home purchase, and the proceeds of the loan were purchase money funds, then the mortgage/deed of trust on that laon is automatically a non-recourse loan. In California, it doesn’t matter if a bank characterizes a loan as a non-recourse loan. If the loan was made at the time of the home purchase, and the proceeds of the loan were purchase money funds, then the mortgage/deed of trust on that laon is automatically a non-recourse loan.

]]> By: Robert http://www.doctorhousingbubble.com/real-estate-the-treacherous-path-for-housing-42-percent-of-california-mortgages-with-negative-equity-1-trillion-in-mortgages-submerged-underwater-in-california-3-trillion-in-us-mortgages-underwater-an/#comment-38917 Robert Wed, 19 Aug 2009 22:40:44 +0000 http://www.doctorhousingbubble.com/?p=2190#comment-38917 Jonah wrote "If you take out equity from a house it turns into a recourse loan." That's interesting. A study came out a few weeks ago showing that most foreclosures were the result of people taking out massive equity, not due to people buying at the peak of the boom. These people must have had their savings wiped out or been bankrupted in many cases. Have personal bankruptcies shown a big spike then? Jonah wrote “If you take out equity from a house it turns into a recourse loan.”

That’s interesting. A study came out a few weeks ago showing that most foreclosures were the result of people taking out massive equity, not due to people buying at the peak of the boom. These people must have had their savings wiped out or been bankrupted in many cases.

Have personal bankruptcies shown a big spike then?

]]> By: Melanie http://www.doctorhousingbubble.com/real-estate-the-treacherous-path-for-housing-42-percent-of-california-mortgages-with-negative-equity-1-trillion-in-mortgages-submerged-underwater-in-california-3-trillion-in-us-mortgages-underwater-an/#comment-38909 Melanie Wed, 19 Aug 2009 20:20:02 +0000 http://www.doctorhousingbubble.com/?p=2190#comment-38909 What is a co-op city? What is a co-op city?

]]> By: maria http://www.doctorhousingbubble.com/real-estate-the-treacherous-path-for-housing-42-percent-of-california-mortgages-with-negative-equity-1-trillion-in-mortgages-submerged-underwater-in-california-3-trillion-in-us-mortgages-underwater-an/#comment-38865 maria Wed, 19 Aug 2009 05:58:08 +0000 http://www.doctorhousingbubble.com/?p=2190#comment-38865 doc, what about Venice??? There's no or very little inventory on the market and with so many Venice mortgages under & banks not reacting I foresee one huge co-op city in the very near future. doc, what about Venice??? There’s no or very little inventory on the market and with so many Venice mortgages under & banks not reacting I foresee one huge co-op city in the very near future.

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