Is there a storm coming ?

[Ron Bibler]

Is there a storm coming ? Ive been looking at the for some time. None of the News programs are talking about it or providing any info. The question is how long can they prop of the home market?

Fed Officials Divided on When to Stop Propping Up the Mortgage Market | Mortgage 101 Blog (http://blog.mortgage101.com/2010/01/09/fed-officials-divided-on-when-to-stop-propping-up-the-mortgage-market/)

Is the storm down the road.

Best

Ron

[Markus Keller]

Ron, of course there is a storm coming. Not that I am a doom and gloom guy but what I see on the street level does not look promising.
The RES market will stabilize this year, just as the Comm market starts to blow up. All those little strip malls and such that have all kinds of vacancy are going to start to go into foreclosure.
I don't know how much longer Banks will be able to keep 'probable' foreclosures off the lists. At least around here Banks are re-negotiating larger loans on a monthly basis to keep having to show them as in default.
From what I hear Banks are also keeping a lot of iffy loans in the loan mod pipeline to keep from having to list them as in foreclosure.
Once the loans are in foreclosure the institution has to increase reserves, which of course would put the Banks in more trouble.
Being in the big City, it looks a little funkier.

[Nick Ostrowski]

I am expecting a drop off when these buyer credits eventually come to a end which is I believe on April 30th. Hopefully the normal uptick of the spring buying season will help offset the inevitable slow down.