“short of Charlie Manson moving in — it can’t be any worse,”

[schizo2buyORnot]

This is an actual quote from an Inland Empire homeowner in the middle of an implosion there . . . .

Flips, scams blamed in California housing decline

http://www.reuters.com/article/inDepthNews/idUSN2040778220070827?feedType=RSS&feedName=inDepthNews&rpc=22&sp=true

[HLS]

The Gordons fear they will lose hundreds of thousands of dollars in equity…. We’ll have to live here eight to ten years before we get our equity back,” said Joe.
AND
Bob Taylor….. they didn’t think they would break even after the market turned south.
*******************************************
WHY are people so fixated on “breaking even” ??
With $50K +++ a year in carrying costs, do they figure that they are even if they spend $500K over 10 years and then can sell for what they paid ??

I know that there are people still holding on to tech stocks, and after 8 years, still waiting to get even.
They don’t even know what the wash rule is.

MY Golden Rule: If ya cannot take it back for a refund, it doesn’t matter what you paid. It’s worth what it’s worth.

Not surprising that many property “investors” have never heard of a 1031 exchange either.

So many people are so out of their league.
Where’s Allen from Fallbrook ??
Would you let your Pop Warner kids play on a college team ???

I especially like the clarification of WHO Charles Manson is 🙂

[HLS]

The Gordons fear they will lose hundreds of thousands of dollars in equity…. We’ll have to live here eight to ten years before we get our equity back,” said Joe.
AND
Bob Taylor….. they didn’t think they would break even after the market turned south.
*******************************************
WHY are people so fixated on “breaking even” ??
With $50K +++ a year in carrying costs, do they figure that they are even if they spend $500K over 10 years and then can sell for what they paid ??

I know that there are people still holding on to tech stocks, and after 8 years, still waiting to get even.
They don’t even know what the wash rule is.

MY Golden Rule: If ya cannot take it back for a refund, it doesn’t matter what you paid. It’s worth what it’s worth.

Not surprising that many property “investors” have never heard of a 1031 exchange either.

So many people are so out of their league.
Where’s Allen from Fallbrook ??
Would you let your Pop Warner kids play on a college team ???

I especially like the clarification of WHO Charles Manson is 🙂

[HLS]

The Gordons fear they will lose hundreds of thousands of dollars in equity…. We’ll have to live here eight to ten years before we get our equity back,” said Joe.
AND
Bob Taylor….. they didn’t think they would break even after the market turned south.
*******************************************
WHY are people so fixated on “breaking even” ??
With $50K +++ a year in carrying costs, do they figure that they are even if they spend $500K over 10 years and then can sell for what they paid ??

I know that there are people still holding on to tech stocks, and after 8 years, still waiting to get even.
They don’t even know what the wash rule is.

MY Golden Rule: If ya cannot take it back for a refund, it doesn’t matter what you paid. It’s worth what it’s worth.

Not surprising that many property “investors” have never heard of a 1031 exchange either.

So many people are so out of their league.
Where’s Allen from Fallbrook ??
Would you let your Pop Warner kids play on a college team ???

I especially like the clarification of WHO Charles Manson is 🙂

[no_such_reality]

Actually, the tell tale stereo typical 909 image:

” “We’re not surprised. We had a feeling it was coming,” said Varsha Shah.

They found out which way the wind was blowing about a year ago when several families moved into some of the homes and never bothered to water the grass or pick up beer cans”

and “For the Gordons and Taylors, these are the people who ruined the neighborhood by using their homes like revolving night clubs, cramming cars into the cul de sacs and threatening neighbors who complained.

The Corona Police Department said it was called about neighborhood disturbances on Towne Square’s Summerset St., where the Shahs live, 35 times in 2006.
”

Okay, a street with 10 homes generates 3 calls a month. The next street over generated 2 calls per month. Between the two streets, about 20 homes, they called more tahn once a week!

[no_such_reality]

Actually, the tell tale stereo typical 909 image:

” “We’re not surprised. We had a feeling it was coming,” said Varsha Shah.

They found out which way the wind was blowing about a year ago when several families moved into some of the homes and never bothered to water the grass or pick up beer cans”

and “For the Gordons and Taylors, these are the people who ruined the neighborhood by using their homes like revolving night clubs, cramming cars into the cul de sacs and threatening neighbors who complained.

The Corona Police Department said it was called about neighborhood disturbances on Towne Square’s Summerset St., where the Shahs live, 35 times in 2006.
”

Okay, a street with 10 homes generates 3 calls a month. The next street over generated 2 calls per month. Between the two streets, about 20 homes, they called more tahn once a week!

[no_such_reality]

Actually, the tell tale stereo typical 909 image:

” “We’re not surprised. We had a feeling it was coming,” said Varsha Shah.

They found out which way the wind was blowing about a year ago when several families moved into some of the homes and never bothered to water the grass or pick up beer cans”

and “For the Gordons and Taylors, these are the people who ruined the neighborhood by using their homes like revolving night clubs, cramming cars into the cul de sacs and threatening neighbors who complained.

The Corona Police Department said it was called about neighborhood disturbances on Towne Square’s Summerset St., where the Shahs live, 35 times in 2006.
”

Okay, a street with 10 homes generates 3 calls a month. The next street over generated 2 calls per month. Between the two streets, about 20 homes, they called more tahn once a week!

[Bugs]

“With $50K +++ a year in carrying costs, do they figure that they are even if they spend $500K over 10 years and then can sell for what they paid ??”

If the $50k is above and beyond what they would normally pay for rental housing in the same unit that’s true. If the actual “lost income” was limited to only $1,000/month the analysis would still hold true but to a much lesser degree.

[Bugs]

“With $50K +++ a year in carrying costs, do they figure that they are even if they spend $500K over 10 years and then can sell for what they paid ??”

If the $50k is above and beyond what they would normally pay for rental housing in the same unit that’s true. If the actual “lost income” was limited to only $1,000/month the analysis would still hold true but to a much lesser degree.

[Bugs]

“With $50K +++ a year in carrying costs, do they figure that they are even if they spend $500K over 10 years and then can sell for what they paid ??”

If the $50k is above and beyond what they would normally pay for rental housing in the same unit that’s true. If the actual “lost income” was limited to only $1,000/month the analysis would still hold true but to a much lesser degree.

[farbet]

When trailer trash move in- Look out.
Some greater fool will show up and bail them out.HEH HEH

[farbet]

When trailer trash move in- Look out.
Some greater fool will show up and bail them out.HEH HEH

[farbet]

When trailer trash move in- Look out.
Some greater fool will show up and bail them out.HEH HEH

[Allan from Fallbrook]

HLS: This entire housing boom was predicated on the buyer’s inability to do even basic math.

Who in their right mind would buy into a 100% LTV 2/28 loan for a home that was substantially overvalued by any meaningful economic set of standards?

I hear your argument, but it is flawed in one significant way: It contains logic.

Add in the emotional component to home ownership and you have people like this; people who will hold on till the bitter end, and will believe any piece of good news the MSM or NAR or MBA feeds them. But, at some point, it all comes apart. And that is when things are gonna get real ugly.

[Allan from Fallbrook]

HLS: This entire housing boom was predicated on the buyer’s inability to do even basic math.

Who in their right mind would buy into a 100% LTV 2/28 loan for a home that was substantially overvalued by any meaningful economic set of standards?

I hear your argument, but it is flawed in one significant way: It contains logic.

Add in the emotional component to home ownership and you have people like this; people who will hold on till the bitter end, and will believe any piece of good news the MSM or NAR or MBA feeds them. But, at some point, it all comes apart. And that is when things are gonna get real ugly.

[Author]

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