Over 1500 Homes in Webb County are Now in Foreclosure

 

This number could soar to well over 3000 by the end of this year.

 

Over 5000 Sub-prime & Alt A Loans were written in Webb County by the end of 2007. 

 

2000 of those were Adjustable Rate Mortgages

800 of these ARMs will reset in the Next 12 mo.

300 of these are now 90+ Past Due

1500 have missed at least 1 payment in the past 12 mo.

 

Our numbers are conservatively estimated based on Federal Reserve Data.

 

An estimated 1744 Webb County Homes were reported to be in Foreclosure 2007 with that number likely to increase by 2008 due the resetting of Adjustable Rate Mortgages.

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In our table below we have conservatively estimated the number of Laredo Households based on 2005 data to be at 60,000.

 

The Data on the table show a combination of Sub-Prime and Alt A Loans written in Webb County.  Alt-A loans are a notch above Sub-Prime where the loan applicant has better credit than would warrant a Sub-prime loan but not quite good enough to obtain conventional lending.

 

The reported column is what is showing on the New York Federal Reserves books, and the estimated column is derived from multiplying the reported numbers by 1.53 to factor the Feds estimate that their numbers only reflect 47% of the true number of loans out there.  The numbers we used at the beginning of this article were somewhere between what was reported to the Fed and what the Feds estimate is.  Note* where the word loan is used it means (Sub-P)+(Alt A)

 

Webb County Subprime Loan Data
Based on Estimated 60,0000 Laredo Households
	Sub P & Alt A	Report	Est
# of Loans per 1000 Households	56.9	3414	5018
% of Loans Currently in Foreclosure	1.9	1140	1675
% of Loans Now Taken over by Bank (REO)	1.3	780	367
% of Loans Written as ARMS	43.1	1468	2157
% of ARMS Resetting to Higher Interest Rate w/in 12 mo	38.2	557	819
% of Loans that are 90+ Days overdue	7.4	252	370
% of Loans Written-No Doc	62.5	2116	3110
% of loans With at least 1 late payment in past 12 months.	34.5	1177	1730

 

Goldman Sachs Group Inc. analyst Arjun N. Murti is now stating publicly what we here at The Laredo Chameleon have been telling our readers for months…That the price of a barrel of oil was headed for $150.00!

“Goldman's Murti Says Oil `Likely' to Reach $150-$200 by Nesa Subrahmaniyan May 6 (Bloomberg) –

“Crude oil may rise to between $150 and $200 a barrel within two years as growth in supply fails to keep pace with increased demand from developing nations, Goldman analysts led by Arjun N. Murti  said in a report.

``The possibility of $150-$200 per barrel seems increasingly likely over the next six-24 months, though predicting the ultimate peak in oil prices as well as the remaining duration of the up cycle remains a major uncertainty,'' the Goldman analysts wrote in the report dated May 5.”

When we informed our readers of our own prediction back in January, received a few emails letting us know we were off our rockers and that oil prices would never reach $150 a barrel as quickly as we were predicting because that would been the dollar would be wiped out and we would be in a depression and that there was no way in hell we will be paying $6-$9.00 per gallon of gas….

Let me state it again…with great clarity this time….hell, let me shout it at the top of my lungs this time:

We will soon be in a Depression.

The U.S. Dollar will be wiped out unless drastic action is taken right now.

We will be paying $6-$9.00 per gallon at the pumps sooner than you can say…what was it Jack was ranting on about this time?

Our Electricity bills will double over the next 24 Months.

The Price of our food will double over the next 24 Months

Crime in Laredo will soon be at record highs.

The Stock Market will send the Dow Jones roaring through 16,000 and many folks will be lulled into a false & misguided sense of security based on the unfounded belief that the worst is over when in fact it is just beginning…and no sooner shall the market hit the 16,000 level that will it implode and send shock waves around the world!

If that is not clear enough for you, then I do not know how to make it any clearer.  If you are wealthy and have your money sitting in a bank in US Dollars you are about to lose 30-50% of your wealth over the next couple of years. 

There are steps you can take to protect your wealth and keep this from happening.  We are currently preparing a research paper entitled Defensive Economics for Pre-Depression Planning which will be made available to anyone that is interested for a fee of $499.00. 

This is serious business for serious minded people.  If you are stuck in the world of disbelief and skepticism you will do nothing.

Smart people will profit during the upcoming decade. 

Yet, the middle-class will be officially knocked off of their pedestal in the social-economic strata as the gap between poor and middle class blends together in one large bleeding mass.

We mentioned earlier that the Government could possibly save this from happening…the problem is…They won’t…as they are too impotent to act due to years of the mindless conditioning of self-service politics will which ultimately lead to their own demise as the upcoming Citizen backlash will knock many of them out of office. 

With a federal election on the calendar, we are quite certain they will not act this year, and when they attempt it next year, it will be too late…it will be time to pay the piper.