{"id":13731,"date":"2010-12-20T11:31:08","date_gmt":"2010-12-20T19:31:08","guid":{"rendered":"http:\/\/seattlebubble.com\/blog\/?p=13731"},"modified":"2010-12-20T13:21:21","modified_gmt":"2010-12-20T21:21:21","slug":"seattle-cash-out-refinance-foreclosure-capital","status":"publish","type":"post","link":"https:\/\/seattlebubble.com\/blog\/2010\/12\/20\/seattle-cash-out-refinance-foreclosure-capital\/","title":{"rendered":"Seattle: Cash Out Refinance Foreclosure Capital?"},"content":{"rendered":"<p>The Seattle Times <a href=\"http:\/\/seattletimes.nwsource.com\/html\/localnews\/2013713579_foreclosures19m.html\" title=\"Foreclosures don't always follow script\">ran a story on Saturday<\/a> that is worth it&#8217;s own post here.  While the narrative consists mostly of the usual &#8220;personal interest&#8221; angle stuff (single mom finds her fourth home in foreclosure when she loses her $800,000 per year job as a mortgage executive, etc.), the attached Tableau interactive tells a much more interesting story:<\/p>\n<div style=\"width:600px; height:495px;\">\n<script type=\"text\/javascript\" src=\"http:\/\/public.tableausoftware.com\/javascripts\/api\/viz_v1.js\"><\/script><object class=\"tableauViz\" width=\"604\" height=\"469\" style=\"display:none;\"><param name=\"name\" value=\"SeattleTimes-Foreclosures\/Foreclosures\" \/><param name=\"toolbar\" value=\"yes\" \/><param name=\"tabs\" value=\"no\" \/><\/object><noscript>How foreclosures played out in three countiesA database of foreclosures in Seattle, Baltimore and Phoenix areas reveals some differences &#038; surprises: Many homeowners in foreclosure were middle-aged, avoided a foreclosure auction, &#038; didn&#8217;t have predatory<br \/><a href=\"http:\/\/seattlebubble.com\/blog\/2010\/12\/20\/seattle-cash-out-refinance-foreclosure-capital\/\"><img loading=\"lazy\" decoding=\"async\" alt=\"How foreclosures played out in three countiesA database of foreclosures in Seattle, Baltimore and Phoenix areas reveals some differences &#038; surprises: Many homeowners in foreclosure were middle-aged, avoided a foreclosure auction, &#038; didn't have predatory\" src=\"http:\/\/public.tableausoftware.com\/static\/images\/Se\/SeattleTimes-Foreclosures\/Foreclosures\/1_rss.png\" height=\"420\" width=\"584\" style=\"border:0;\" \/><\/a><\/noscript><\/p>\n<div style=\"width:604px;height:22px;padding:0px 10px 0px 0px; color:black;font:normal 8pt verdana,helvetica,arial,sans-serif;\">\n<div style=\"float:right; padding-right:8px;\"><a href=\"http:\/\/www.tableausoftware.com\/public?ref=http:\/\/public.tableausoftware.com\/views\/SeattleTimes-Foreclosures\/Foreclosures\" target=\"_blank\">Powered by Tableau<\/a><\/div>\n<\/div>\n<\/div>\n<blockquote><p>Home values in King County grew nearly three times faster than household income from 2000 to 2008, with barely a lull after the dot-com bust at the beginning of the decade.<\/p>\n<p>About 40 percent of homeowners in the Seattle-area foreclosure data had owned their houses for more than five years. One out of five had owned for a decade or longer \u2014 long enough to build up substantial equity.<\/p>\n<p>That may help to explain one defining aspect of the Seattle-area foreclosures: About half involved refinancing, the data show, a much higher rate than in the Phoenix or Baltimore areas.<\/p>\n<p>The most common loan? A hybrid adjustable-rate mortgage that resets to higher payments after two years, a product that encouraged repeat refinancing.<\/p>\n<p>Some homeowners cashed out equity to pay debt, make home improvements or finance a business. Homeowners also lost equity as refinancing added loan fees.<\/p><\/blockquote>\n<p>I assume they selected Baltimore as a comparison because it&#8217;s <a href=\"http:\/\/seattlebubble.com\/blog\/2007\/02\/13\/what-cities-does-seattle-compare-to\/\" title=\"What Cities Does Seattle Compare To?\">fairly close to Seattle<\/a> in population, geographic size, and density.  Phoenix was of course the &#8220;extreme&#8221; comparison point.<\/p>\n<p>Although their analysis was only based on a sample of 400 foreclosures per market, this data does explain why it is so ridiculously easy to find <a href=\"http:\/\/seattlebubble.com\/blog\/2010\/02\/08\/housing-atm-we-have-a-winner\/\" title=\"Housing ATM: We Have a Winner\">outrageous examples of equity withdrawl gone wild<\/a>.<\/p>\n<blockquote><p>Lili Sotelo, managing attorney at Northwest Justice Project, said she&#8217;s seen thousands of homeowners who got caught up in the refinancing frenzy.<\/p>\n<p>&#8220;[Borrowers] thought they had to get on the equity train,&#8221; she said. &#8220;No one thought the train was going to crash.&#8221;<\/p><\/blockquote>\n<p><a href=\"http:\/\/seattlebubble.com\/blog\/2005\/08\/20\/zealous-optimism-growing-equity-borrowing\/\" title=\"Zealous Optimism = Growing Equity Borrowing\">Well<\/a>&#8230;  <a href=\"http:\/\/seattlebubble.com\/blog\/2006\/05\/17\/typical-seattle-story\/\" title=\"Typical Seattle Story\">not<\/a> <a href=\"http:\/\/seattlebubble.com\/blog\/2006\/10\/03\/prices-plateau-as-incomes-catch-back-up\/\" title=\"&quot;Prices plateau as incomes catch back up&quot;\">exactly<\/a> <em>no one<\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Seattle Times ran a story on Saturday that is worth it&#8217;s own post here. While the narrative consists mostly of the usual &#8220;personal interest&#8221; angle stuff (single mom finds her fourth home in foreclosure when she loses her $800,000 per year job as a mortgage executive, etc.), the attached Tableau interactive tells a much&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[612,198],"tags":[7,31,531],"coauthors":[],"class_list":["post-13731","post","type-post","status-publish","format-standard","hentry","category-local","category-news","tag-foreclosures","tag-seattle_times","tag-tableau"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Seattle: Cash Out Refinance Foreclosure Capital? \u2022 Seattle Bubble<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/seattlebubble.com\/blog\/2010\/12\/20\/seattle-cash-out-refinance-foreclosure-capital\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Seattle: Cash Out Refinance Foreclosure Capital? \u2022 Seattle Bubble\" \/>\n<meta name=\"twitter:description\" content=\"The Seattle Times ran a story on Saturday that is worth it&#8217;s own post here. 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