NYT On The Housing Recovery: ‘Homes See Biggest Price Gain in Years, Propelling Stocks’ – ZeroHedge: 3 Big Banks Halt Foreclosures In May, Keeping The ‘Recovery’ Dream Alive

What can you say?


Homes See Biggest Price Gain in Years, Propelling Stocks (New York Times, May 28, 2013):

Americans are in a buying mood, thanks largely to the housing recovery.

The latest sign emerged Tuesday as the Standard & Poor’s Case-Shiller home price index posted the biggest gains in seven years. Housing prices rose in every one of the 20 cities tracked, continuing a trend that began three months ago. Similar strength has appeared in new and existing home sales and in building permits, as rising home prices are encouraging construction firms to accelerate building and hiring.

The broad-based housing improvements appear to be buoying consumer confidence and spending, countering fears earlier this year that many consumers would pull back in response to government austerity measures.

Keeping The ‘Recovery’ Dream Alive; 3 Big Banks Halt Foreclosures In May (ZeroHedge, May 28, 2013):

What is the only thing better than Foreclosure Stuffing to provide an artificial supply-side subsidy to the housing market? How about completely clogging the foreclosure pipeline, by halting all foreclosure sales, which is just what the three TBTF megabanks: Wells Fargo, JPMorgan and Citi have done in recent weeks. Under the guise of ‘ensuring late-stage foreclosure procedures were in accordance with guidelines’, the LA Times reports that these three banks paused sales on May 6th and all but halted foreclosures. Perfectly organic housing recovery – as we noted earlier… and guess what states the greatest number of ‘halts’ are in from these banks – California, Nevada, Arizona – exactly where the surges in price have occurred.

Via The LA Times,

Sales of homes in foreclosure by Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc. ground nearly to a halt after regulators revised their orders on treatment of troubled borrowers during the 60 days before they lose their homes.

The banks said they paused the sales on May 6 to make sure that their late-stage foreclosure procedures were in accordance with the guidelines. The banks wouldn’t say exactly which issues had been under scrutiny.

Wells and Citi were still on hold as of Friday, according to PropertyRadar.com, which tracks foreclosure filings in California, Nevada, Arizona, Oregon and Washington.

“We simply needed to take the time to assure that we can validate and document our compliance,” Wells Fargo added.

At Wells, the biggest mortgage servicer, foreclosure sales in the five Western states fell to 17 for the week beginning Monday, May 6, from 298 the previous week,

A bank official predicted Wells would soon resume selling the houses of defaulted borrowers. “It won’t be long,”

1 thought on “NYT On The Housing Recovery: ‘Homes See Biggest Price Gain in Years, Propelling Stocks’ – ZeroHedge: 3 Big Banks Halt Foreclosures In May, Keeping The ‘Recovery’ Dream Alive

  1. Up to 90% of all foreclosed homes are being held off the market to try and establish a bottom. It is totally rigged, most people cannot get financing, need to use cash. If you have cash, now is the time. But, at some point, all those empty houses are going to impact the market.

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