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patientlywaiting.
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October 9, 2008 at 4:10 PM #284692October 9, 2008 at 7:54 PM #284560
Anonymous
GuestThere’s no easy solution but McCain’s proposal is garbage. All it does is bail out the lenders. Let/encourage the upside-down homeowners to walk. In this economic environment it’s (in my opinion) quite likely that housing prices are going to fall until they reach their intrinsic value, i.e., where they “pencil out” as rental properties. Although the prices may “overshoot” there are still lots of people with money that will, in one way or another, buy these houses and turn them into rentals. This will form the new bottom for houses and where they go from there depends on how incomes increase over time.
A better solution would be to sponsor/underwrite lower interest rate loans for qualified buyers, or for refinance, or for investors. One effect of this is that it would increase the price at which the properties “pencil out” and arrest the price fall sooner and at a higher price level. It’s also inherently fairer in that it would also reward responsible homewoners that are fiscally responsible (e.g., those with high down payments, that did not cash out refi, pursued 15 year loans, improved the property).
October 9, 2008 at 7:54 PM #284849GuestThere’s no easy solution but McCain’s proposal is garbage. All it does is bail out the lenders. Let/encourage the upside-down homeowners to walk. In this economic environment it’s (in my opinion) quite likely that housing prices are going to fall until they reach their intrinsic value, i.e., where they “pencil out” as rental properties. Although the prices may “overshoot” there are still lots of people with money that will, in one way or another, buy these houses and turn them into rentals. This will form the new bottom for houses and where they go from there depends on how incomes increase over time.
A better solution would be to sponsor/underwrite lower interest rate loans for qualified buyers, or for refinance, or for investors. One effect of this is that it would increase the price at which the properties “pencil out” and arrest the price fall sooner and at a higher price level. It’s also inherently fairer in that it would also reward responsible homewoners that are fiscally responsible (e.g., those with high down payments, that did not cash out refi, pursued 15 year loans, improved the property).
October 9, 2008 at 7:54 PM #284872GuestThere’s no easy solution but McCain’s proposal is garbage. All it does is bail out the lenders. Let/encourage the upside-down homeowners to walk. In this economic environment it’s (in my opinion) quite likely that housing prices are going to fall until they reach their intrinsic value, i.e., where they “pencil out” as rental properties. Although the prices may “overshoot” there are still lots of people with money that will, in one way or another, buy these houses and turn them into rentals. This will form the new bottom for houses and where they go from there depends on how incomes increase over time.
A better solution would be to sponsor/underwrite lower interest rate loans for qualified buyers, or for refinance, or for investors. One effect of this is that it would increase the price at which the properties “pencil out” and arrest the price fall sooner and at a higher price level. It’s also inherently fairer in that it would also reward responsible homewoners that are fiscally responsible (e.g., those with high down payments, that did not cash out refi, pursued 15 year loans, improved the property).
October 9, 2008 at 7:54 PM #284892GuestThere’s no easy solution but McCain’s proposal is garbage. All it does is bail out the lenders. Let/encourage the upside-down homeowners to walk. In this economic environment it’s (in my opinion) quite likely that housing prices are going to fall until they reach their intrinsic value, i.e., where they “pencil out” as rental properties. Although the prices may “overshoot” there are still lots of people with money that will, in one way or another, buy these houses and turn them into rentals. This will form the new bottom for houses and where they go from there depends on how incomes increase over time.
A better solution would be to sponsor/underwrite lower interest rate loans for qualified buyers, or for refinance, or for investors. One effect of this is that it would increase the price at which the properties “pencil out” and arrest the price fall sooner and at a higher price level. It’s also inherently fairer in that it would also reward responsible homewoners that are fiscally responsible (e.g., those with high down payments, that did not cash out refi, pursued 15 year loans, improved the property).
October 9, 2008 at 7:54 PM #284902GuestThere’s no easy solution but McCain’s proposal is garbage. All it does is bail out the lenders. Let/encourage the upside-down homeowners to walk. In this economic environment it’s (in my opinion) quite likely that housing prices are going to fall until they reach their intrinsic value, i.e., where they “pencil out” as rental properties. Although the prices may “overshoot” there are still lots of people with money that will, in one way or another, buy these houses and turn them into rentals. This will form the new bottom for houses and where they go from there depends on how incomes increase over time.
A better solution would be to sponsor/underwrite lower interest rate loans for qualified buyers, or for refinance, or for investors. One effect of this is that it would increase the price at which the properties “pencil out” and arrest the price fall sooner and at a higher price level. It’s also inherently fairer in that it would also reward responsible homewoners that are fiscally responsible (e.g., those with high down payments, that did not cash out refi, pursued 15 year loans, improved the property).
October 10, 2008 at 7:48 AM #284964patientlywaiting
ParticipantI see more foreclosures on the horizon.
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About 75.5 million U.S. households own the homes they live in. After a housing slump that has pushed values down 30 percent in some areas, roughly 12 million households, or 16 percent, owe more than their homes are worth, according to Moody’s Economy.com.
October 10, 2008 at 7:48 AM #285255ParticipantI see more foreclosures on the horizon.
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About 75.5 million U.S. households own the homes they live in. After a housing slump that has pushed values down 30 percent in some areas, roughly 12 million households, or 16 percent, owe more than their homes are worth, according to Moody’s Economy.com.
October 10, 2008 at 7:48 AM #285276ParticipantI see more foreclosures on the horizon.
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About 75.5 million U.S. households own the homes they live in. After a housing slump that has pushed values down 30 percent in some areas, roughly 12 million households, or 16 percent, owe more than their homes are worth, according to Moody’s Economy.com.
October 10, 2008 at 7:48 AM #285298ParticipantI see more foreclosures on the horizon.
*
About 75.5 million U.S. households own the homes they live in. After a housing slump that has pushed values down 30 percent in some areas, roughly 12 million households, or 16 percent, owe more than their homes are worth, according to Moody’s Economy.com.
October 10, 2008 at 7:48 AM #285307ParticipantI see more foreclosures on the horizon.
*
About 75.5 million U.S. households own the homes they live in. After a housing slump that has pushed values down 30 percent in some areas, roughly 12 million households, or 16 percent, owe more than their homes are worth, according to Moody’s Economy.com.
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