Day of reckoning will it come?

[mixxalot]

With future bailouts coming will there ever be a day of reckoning? Also will prices come down or just go up? It will be interesting to see if the suicide loans evaporate or if the Fed and big biz allow bad loans to continue.

I would like a small home or condo in San Diego but cannot see the logic in paying 4x what my rent is right now for a place.

[kev374]

Bailout will not happen. There is no broad support for this kind of bailout and even the President has indicated that it is not going to be happening. By the time a new administration comes after the ’08 elections it would be way to late to salvage anything.

Currently Hillary Clinton and Senator Dodd are the only 2 buffoons calling for this bailout nonsense.

[SD Realtor]

Kev I very much hope you are right. However Hillary may very well be our president. If this depreciation cycle mimics the others then she will be walking into the white house right when we are at maximum you know what hitting the fan. I am not ready to discount how much damage she can do…

Hang in there mixx…

SD Realtor

[PerryChase]

If you look back at the history of the last Real Estate crash in the 1990s, Bush (the father) loss the 1992 elections mostly because of the recession. Bill Clinton was then an unknown Southern governor.

This time the Republicans will loose because of a recession also. By the time a Democrat gets into the White house in 2009, it’ll be too late to do anything but clean up the mess.

Bill Clinton is the one who cleaned up the S&L mess and gave us welfare reform in 1996. The Republicans are like Realtors, they give us a lot of lip service positive spin but produce little (I don’t mean the Piggington Realtors). I think Republicans get votes because they are like motivational speakers who make people feel good for a short while. You invest in their schemes and you feel wealthy for a while until you go bankrupt.

[Ash Housewares]

There is not CURRENTLY broad support for a bail-out. I wouldn’t be surprised if that changed in the future as more and more people are affected by this. I hope I’m wrong.

[sddreaming]

SD Realtor, interesting point about Hilary. I tend to view issues, such as bailout, in terms of who would profit the most. If the real estate market continues to decay, where will we be the summer before the next presidential cycle? Who will be the presidential candidates? How will these individuals gain from the real estate debacle? Perhaps these questions will clue us into the future of San Diego real estate.

[mixxalot]

Well judging from the fact that Hillary and Obama are bigtime corporate lawyers and with the past story of Whitewater I would not be surprised if these guys try to play a 3 card monte on the people in this country. I trust most lawyers and politicians as far as I can throw them in same category as used cars salesmen and insurance sales people and most real estate con artists. Not good.

If Hillary gets elected major tax hikes.

[SD Realtor]

I have never expressed my political views on this site and will not start now. Anyways Hillary does have alot of money behind her so that is what prompted my earlier comment.

sddreaming my read on the cycle is that I believe it will be a 6 year cycle and we are in year 2. As you have seen there are those that have posted thoughts (sdrealtor and dacounselor) that the banks and lending institutions are mobilizing forces to deal with the wave of possible foreclosures. I for one absolutely agree with these thoughts. There is way way way to much money involved to assume these powers that be will let so many foreclosures occur. Concho is another who has posted his thoughts and while may seem cycnical I rally have a hard time disagreeing with him as well. To much money is at stake.

By the summer of 2008 we should be well past the 1996 figure for total foreclosures. If this is allowed to happen with little to no government interference, and if the banks, lenders, hedge funds stave off a percentage of them, but not a high percentage, then we “should” see another price decline from where we are today. I would guess it will be in single digits.

When you say who will gain from the debacle I assume you mean which presidential candidates? I guess the ones that politicize the debacle the best. Hillary and Obama will most likely be best suited to gain the most out of it.

Just my guess…

SD Realtor

[Cow_tipping]

The whole political stance is to give the impression that they are doing something for their voters while helping their contributors and friends.
By the time 09 comes about, it will be futile to do anything because the dumping of houses will at that time be a flood. People know they can rent the same damn thing they dumped. Ultimately there will come a time when people let their house go and move into the one next door as a rental cos that one went through foreclosure and came back on the market at 1/4th their payment. They may dump theirs. rent the next one, and buy theirs back for less.
Cool.
Cow_tipping.

[PerryChase]

If I remember well, a poster previously said that’s what he and his relatives did in the 1990s — walk away from mortgages and buy other houses at 1/3 off. Yes, it’s different this time. The numbers are larger so there’ll be even more incentives to let upside-down houses go back to the bank.

By the way, there’s nothing wrong (legally or ethically) with letting the lender foreclose. It’s one of the terms of mortgage contract and going into foreclosure is simply abiding by the terms of the agreement, nothing more, nothing less.

[kicksavedave]

Hillary or Obama, Democrat or Republican, it doesn’t matter. The latest poll we saw about a bailout was 91% to 9% against it. Americans are never so united as a 9 to 1 support for or against anything… except this. No matter how many FBs are subject to a bailout, the number of everyone else who either rents and saves, or has an appropriate mortgage, will far outnumber the FBs. So any bailout would serve a small minority of Americans, while benefitting primarily a tiny fraction of super rich bank execs.

Any politician who would support such a bailout does so at their own tremendous political peril. I’ll be writing a letter to any pol who even mentions supporting it, that it will cost them my vote.

91% of voters are against it… I’m not sure even Dick Cheney could muster enough balls to support bailing out nothing but bank millionaires in the face of that much unanimous voter opposition.

[PerryChase]

” Ameriquest’s top executive, Roland Arnall, also has been one of President Bush’s top fundraisers, generating $12 million for the president’s political efforts during the past four years. On July 28, Bush nominated Arnall, a billionaire who was ranked No. 106 in the 2004 Forbes magazine list of the wealthiest Americans, as ambassador to the Netherlands.”

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/08/12/MNG7UE70IF1.DTL

http://netherlands.usembassy.gov/biography.html

I think that if there’s a bailout, the money will all go to the lenders rather than the homeowners.

How can you extend toxic mortgages that are interest-only, negative-amortization, low teaser rates, option-ARMs? By definition, the monthly mortgage payments on these loans hardly pay the interest and the loans balances are growing, not being paid down.

[kev374]

bottom line is these a-holes who are crying about their home need to accept the fact that they made a bad decision by not understanding or being indifferent to the terms of their loan. The consequence is to lose their home and move onto a rental where they belonged in the first place. These losers along with the politicians crying for their cause act like a home is their entitlement.

A lot of us can infact stretch and buy places but we choose to be judicious and careful. Those that have been reckless or indifferent should be accountable for those actions.

Losing a home is not the end of the world, they can move on to a rental instead of being arrogant jerks thinking they are entitled to special treatment.

Rewarding reckless behavior by a bailout is nothing short of an outrage.

[LookoutBelow]

 

 From what I heard….36 million of these letters went out last week, hopefully you didn't get one

 

Dear fool with the ARM:

PARTY'S OVER ….time to give all of that money back to me and my small group of family's that actually control the world and the Fed….(well, you call it the "Federal Reserve" Which it is neither, its our own personal ATM/printing press)

Hope you had fun "holding" our dough for the last 3 years…now back to work you lazy dock monkeys !! ..the PARTY is OVER

 

Sincerely,

M. Bilderberger

CC. A. Rothschild

M. Krupp

[poorgradstudent]

I think kicksavedave nailed it. Who is going to favor a bailout? FBs. Who is going to be against it? Everyone else, including my rather sizable demographic, renters.

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