[quote=CA renter]
Also, just in case I’m coming across as a perma-bear; I’ve said since at least summer of 2008 that things were looking fairly realistic in the harder-hit areas.
Unfortunately, with all of the various credit/mortgage “stimuli” and supply manipulation (moratoriums, encouraging deadbeats, etc.), it looks like the govt will succeed in forming another bubble, especially in the lower-priced areas. Too much speculation going on again, which was one of the red flags during the bubble. This next batch of foreclosures will absolutely be on the govt tab, so not quite sure how they plan to deal with that in the future.
[/quote]
I would have to say I agree w/you on this also. I see people doing the FHA, 8k credit and squeeze their way into a place b/c of fear. Fear prices are going to shoot back up. Fear this is their last chance. These people barely have any savings and still plenty of debt w/cards, cars, loans, etc., w/questionable job security/income.
I can easily see a few of these could be in some trouble down the road. But at this point, w/the way the gov and banks are behaving, might end up being a good thing if they default, since they can live there for free.
And yet, I can’t bring myself to get on board w/this. In the end, you are stuck w/the place and debt or the headache/credit hit.
Edit: I have a friend (couple) who did a major short sale on the condo they bought at peak. They are renting and waiting it out. Yet I have another friend (couple) that have been renting out the bubble and now in panic mode about buying something quickly. I get worried when I see frenzy. Multiple bids doesn’t make me think bottom. But what do I know. Maybe now this is just the norm and the way things will be from here on out.
