ok – the subprime people who CAN’T qualify for a loan – unless they lie about income/debts etc will be out of luck period.
But the people who CAN get loans, who see thier 500k investment suddenly worth $200k….are now $300k in the hole..on something worth $200k…
if they find a $350k house that “used” to be $800k+ and is their “dream” home…and they can qualify for $350k… what would stop that person from buying the 350k home…lying about the prior one being “rented” and lie about the “rent” to GET IN the new home – then to just walk away from the $300k LOSS??
I have heard of people doing this in the last bust. if people are willing to fudge on loan apps, buy 8 houses on zero income – do you really think that SOME people won’t perpetrate another form of fraud to unload their bad decision and simultaneously “upgrade” to a better house?
i know one person who bought house #2 while owning house #1 hosue #1 was NOT rented, but he lied and said it was. he had EXCELLENT credit, a HIGH income…but was living in house #1 while he was trying to close a deal on house #2. he actually had the cash to float both until he WAS able to rent #1…and ultimately it all worked out. he now has TWO houses…one is rented..but at the time of hte loan app..there was fraud going on. and he was NOT s subprime person.
who’s to say that when the $hit hits the fan – you won’t have these same peple doing the same thing, only not even bothering to rent out the old one..they get thehouse they want…and then they just let the old one go…
i think the 1900-2200 sq ft stuff in Harveston will be at the 300a-325k point.
the prescott homes are a bit larger – but the location within harveston sucks. the meritage homes – the small ones are too small. they are sub 2000 sq ft, they feel even smaller, and they are alrady at the 400k point. i personally think these will also fall down to the low 300s.
the larger 2500+ sq ft homes are not going to fall as low as 300k flat. maybe 400?
last time i checked, the Larger meritage homes were not in the low 400s..they were in the upper 400s to low 500s. have they come down since i last looked? they are larger homes…closer to 3000 sq ft on average…only downside is once again they are not walking distance to the lake and they are very close to date street which means you will get road noise in your backyard. Date st will eventually connect to the freeway – and will be very busy.
i just don’t see prices tanking as bad as the average piggington person. i think they will drop..but i think the drops will be smaller. the builders are making some big drops…but the only ones i’ve seen come down substantially are the ones that either WAY overpriced, or in areas that are less desirable. like the DR horton ones. bad area within tem/murr. i would not want to live in that area. it’s not THAT far from harveston, but far enough. id’ rather be in temecula than murrieta anyway.
i haven’t seen anything in harveston that was under 400k. i saw one short sale advertised at 399k…but no idea if that is a legit deal or a low asking price to stimulate offers..who knows if the bank will even tak eit..i’ve seen cottages OFF the lak in the low 400s. most other ones in the 1900-2200 sq ft range are mid 400s to high 400s.
the larger homes…the ones that are 2400-2500+ are 500k+ still. i don’t see any of those homes slashing prices 100k.
