Ohio bailing out foreclosures

[kewp]

I agree that there simply isn’t enough money to bail out California at this point.

The *best* thing that can happen is a quick, fast crash that gets prices somewhere near reasonable in SoCal and folks start buying and moving in. This will take the edge of any major local recession.

Unfortunately, I have feeling we are going to see stagnation and slow deflation over at least the next five to ten years, which is going to hang heavy on the San Diego economy.

[Cow_tipping]

Ohio is one of those states that used to be an industrial hot spot in the 60’s and 70’s. So a lot of older people lived and worked there. Now they are retiring and getting out, presumably to FL. Of course some of them cant sell and there fore cant buy in FL, the rest have sold or listed it and bought elsewhere anyway …
If CA crashes hard and fast and starts to recover before 2010 – 2011 it will have some semblence of recovery going before Ohio and michigan’s problem repeats itself. If not, its going to be a looooong 30 or 40 years and the landscape of real estate is going to be changed for ever (and I dont mean a “permanently high plateau” either) baby boomers retire and dump their built in the 70’s crap in record numbers on the market. Prices drop and still most of that crap doesn’t sell. RE depression spreading to the whole market. we slowly start making more of the things we need instead of buying it off china cos cost of living has dropped here and slowly everything starts selling but at a much much lower price.
Cool.
Cow_tipping.

[Anonymous]

But then Ohio needs to find the FBs a good paying job too.
Otherwise, they’ll default on the new mortgage just as quick.

[SHILOH]

“I thought foreclosure *was* the bailout. It relieves the debtor from the responsibility of paying off the debt, and the house is given to the lien holder, the bank.”

Even a foreclosed property must be maintained, taxed,etc…while just sitting there sliding down in price. Not to mention the money already lost via HELOCs used to finance extravagance.

“If this double-bailout is in effect, it will only serve to keep prices inflated.”

Prices cannot be sustained if no one (ie the middle class) cannot afford to buy.
Unless…the goal here is for a paradigm —middle class home ownership as generational indentured servitude.

The problem for all this blood sucking is that..people who do not have $ cannot spend $. Or ” you can’t squeeze blood out of a turnip.” And credit only goes so far if you aren’t paying back. SO to the extent that you are strapped to your house…you cannot spend in other areas of the economy.

THerefore – this current housing market will suck the life out of the middle class unless it falls way down to traditional workable fundamentals.

[drunkle]

i hope the administration of this bail out is as stupid as the bail out itself. that is, bonds are sold and money disbursed directly to the “homeowners”. guess where the money goes from there? that’s right, in a continuation of this fraud/fiasco, these “homeowners” pocket the money and split.

even better, i hope there’s provisions for the “homeowners” who have already been foreclosed upon. so that they too can have a slice. and if there isn’t, they should sue.

come 6 months to a year, decent ohioans get medieval on these idiot politicians, dust off the tar and feathers and run them out of town.

[bob007]

I am a highly paid software engineer. I rent a one bedroom apartment because I think it is stupid to buy a home at current prices. It is unaffordable.

[noone]

even better, i hope there’s provisions for the “homeowners” who have already been foreclosed upon. so that they too can have a slice. and if there isn’t, they should sue.

And how about those who could have taken out one of these ridiculous loans but realized that it would end up in foreclosure? They should each get $100 grand too!

[Author]

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