- This topic has 90 replies, 13 voices, and was last updated 15 years, 3 months ago by
NotCranky.
-
AuthorPosts
-
-
December 7, 2007 at 12:41 PM #11130
-
December 7, 2007 at 2:39 PM #111596
pepsi
ParticipantIf the rate freeze works, then the MBS investors will ask for high rates for their money, which will price even more people (even with excellent credit scores) out of market.
When even $150K income can not afford the $600K house, because of tighten lending standard and interest spread, the house price will goes even lower and over-correct……
The end result will be more default and more inventory on the market.
No matter what you do, the price has to go back to the norm. Better no bailout and let the market find its way out than having the bailout and blocking the most efficient way to the recovery.
-
December 7, 2007 at 3:14 PM #111611
Ash Housewares
ParticipantThis is the article/reporter whom I posted was looking for people to talk to. Only had one taker.
-
December 7, 2007 at 3:14 PM #111724
Ash Housewares
ParticipantThis is the article/reporter whom I posted was looking for people to talk to. Only had one taker.
-
December 7, 2007 at 3:14 PM #111767
Ash Housewares
ParticipantThis is the article/reporter whom I posted was looking for people to talk to. Only had one taker.
-
December 7, 2007 at 3:14 PM #111778
Ash Housewares
ParticipantThis is the article/reporter whom I posted was looking for people to talk to. Only had one taker.
-
December 7, 2007 at 3:14 PM #111807
Ash Housewares
ParticipantThis is the article/reporter whom I posted was looking for people to talk to. Only had one taker.
-
December 7, 2007 at 3:25 PM #111622
kev374
ParticipantThis is an interesting read on the long term effects of such a plan:
http://www.cnbc.com/id/22150432
IMHO, home prices will continue to decline rapidly with or without the freeze. Freezing rates doesn’t stop the market from declining. Those that NEED to sell set the comps not those that are off the market.
This freeze will ACCELERATE the decline, why? Because lending will become MUCH tighter in effect further reducing the pool of those who qualify to buy. Less people to buy, lower prices go 🙂
-
December 7, 2007 at 4:27 PM #111696
rocket science
ParticipantSome of these points are similar to Rich’s latest write up.But there is another article right next to this one in the LA Times with a Q&A on the process.Cash-strapped borrowers gain time to improve credit, equityhttp://www.latimes.com/business/la-fi-subprimeqa7dec07,1,380708.story?coll=la-headlines-business&ctrack=5&cset=trueOne excerptWho qualifies for the rate freeze?
First, the residence must be owner-occupied. The borrower must be no more than 30 days late on his or her mortgage payments and have a FICO credit score of 660 or less. The loan must have been originated in January 2005 to July 2007 and have an initial reset date of January 2008 to July 2010. Also, the borrower must have less than 3% equity in the home.And then they include an example where the borrower will pay ~$28,300 less per $100K of loan for the 30 year loan with the freeze, assuming they are paying P&I. Or in other words the bank gets ~$28,300K LESS per $100K of loan for the 30 year loan. Are a lot of lenders going to buy into this?And of course we can surely assume they are most likely a large percentage of interest only loans.And the instigators of this apparently didn’t read this article (courtesy of gary_broker, not sure if it has been in another thread) http://finance.yahoo.com/real-estate/article/103872/Real-Estate:-Buy,-Sell,-or-Hold;_ylt=AoYhL5ognSwCfrwaIJ3.KbC7YWsAwhich uses the rental ratio concept analysis to predict that anyone w/o any equity in their house now (see less tna 3% to qualify above) is sure to be way underwater in 5 years when it is time to reset! Bingo! Almost guarantees they all get foreclosed because they can’t refi then w/o equity!
And then the third LA Times article in today’s paper right next to the other two is the coup de gras.All this might just be too late……. Mortgage delinquency rate risesThe number of Americans who fell behind on their mortgage payments rose to a 20-year high in the third quarter as borrowers were unable to refinance or sell their homes…http://www.latimes.com/business/la-fi-foreclose7dec07,1,6968753.story?coll=la-headlines-business&ctrack=8&cset=true
rs
-
December 7, 2007 at 8:58 PM #111756
cr
ParticipantI just wonder what % of the population is actually in support of something like this.
The perma-bulls of housing argue that 98% or more of homeowners are paying on time. If so, then why all this trouble for the irresponsible 2%?
They should make this a vote, not election year propaganda. Alt-A and Prime will make sub-prime problems look like the good ‘ol days.
-
December 7, 2007 at 10:26 PM #111780
paramount
ParticipantIf there is one thing I have learned in the last 5 years with the housing bubble, it’s that the financial system is rigged and engineered.
-
December 7, 2007 at 10:34 PM #111785
kev374
Participantplease watch this, 20 minutes…very good analysis!!!
-
December 7, 2007 at 10:34 PM #111902
kev374
Participantplease watch this, 20 minutes…very good analysis!!!
-
December 7, 2007 at 10:34 PM #111941
kev374
Participantplease watch this, 20 minutes…very good analysis!!!
-
December 7, 2007 at 10:34 PM #111950
kev374
Participantplease watch this, 20 minutes…very good analysis!!!
-
December 7, 2007 at 10:34 PM #111983
kev374
Participantplease watch this, 20 minutes…very good analysis!!!
-
December 7, 2007 at 10:26 PM #111897
paramount
ParticipantIf there is one thing I have learned in the last 5 years with the housing bubble, it’s that the financial system is rigged and engineered.
-
December 7, 2007 at 10:26 PM #111936
paramount
ParticipantIf there is one thing I have learned in the last 5 years with the housing bubble, it’s that the financial system is rigged and engineered.
-
December 7, 2007 at 10:26 PM #111945
paramount
ParticipantIf there is one thing I have learned in the last 5 years with the housing bubble, it’s that the financial system is rigged and engineered.
-
December 7, 2007 at 10:26 PM #111978
paramount
ParticipantIf there is one thing I have learned in the last 5 years with the housing bubble, it’s that the financial system is rigged and engineered.
-
December 8, 2007 at 8:23 AM #111869
Arraya
Participant“I just wonder what % of the population is actually in support of something like this.”
The only percentage that matters is the tiny percentage of people on Wall Street that wrote it.
This a nothing more than a skillful ruse to keep FBs that are upside down on their homes to keep paying. If they knew what was good for them they would run as far away from that house as possible.
Do we really think the BK law that was changed back in 05 was a coincidence. It is just more leverage to keep them in their homes.
-
December 8, 2007 at 11:58 AM #111924
rocket science
ParticipantAnother article in the LA Times today.
Tom PetrunoThe success of the Bush administration's plan to stem home foreclosures will hinge in large part on whether the investors who own sub-prime mortgages will play along and accept lower interest payments to keep people in their houses.He quotes one of the guys from the video link in the kev374 post above.
Josh Rosner, suggests that a rash of legal challenges to loan modificaions is inevitable.
rs
-
December 8, 2007 at 1:29 PM #111939
Arraya
ParticipantWhat is better for the investor to take posession of an asset that they could sell for 30-50% less or have some fool pay a lower interest rate on the full vaue. Those are the investor’s choices.
-
December 8, 2007 at 1:53 PM #111964
bobby
Participantyup. I agree with araya.
as long as it doesn’t involve tax money in this “bail out”, I don’t care if interest rate if frozen or vaporized.
the banks will be even more careful than needed when lending out money now. i.e less buyers and decreased price.
market forces are still at work. -
December 8, 2007 at 2:56 PM #111980
TheBreeze
ParticipantYeah, this is actually a pretty good plan. The politicians get to look like they’re doing something and no taxpayer money is involved. This is possibly the most intelligent thing the Bush administration has ever done. I wish politicians always came up with plans like this. Could you imagine how much better off we’d be if Bush was still talking about invading Iraq instead of actually having done it?
I kind of wonder if this plan wasn’t floated out there to get the public’s reaction. If the public had clamored for a bigger bailout, then Paulson probably would have floated a new plan that involved taxpayer monies. As it is, it looks like the public is against a bailout so maybe a huge taxpayer-funded bailout won’t happen.
Of course, I also wonder if this plan isn’t just a destraction. The real bailout may be happening out of site with the changing of how the GSEs, the FHA, and the Federal Home Loan Banks operate.
-
December 8, 2007 at 2:56 PM #112095
TheBreeze
ParticipantYeah, this is actually a pretty good plan. The politicians get to look like they’re doing something and no taxpayer money is involved. This is possibly the most intelligent thing the Bush administration has ever done. I wish politicians always came up with plans like this. Could you imagine how much better off we’d be if Bush was still talking about invading Iraq instead of actually having done it?
I kind of wonder if this plan wasn’t floated out there to get the public’s reaction. If the public had clamored for a bigger bailout, then Paulson probably would have floated a new plan that involved taxpayer monies. As it is, it looks like the public is against a bailout so maybe a huge taxpayer-funded bailout won’t happen.
Of course, I also wonder if this plan isn’t just a destraction. The real bailout may be happening out of site with the changing of how the GSEs, the FHA, and the Federal Home Loan Banks operate.
-
December 8, 2007 at 2:56 PM #112137
TheBreeze
ParticipantYeah, this is actually a pretty good plan. The politicians get to look like they’re doing something and no taxpayer money is involved. This is possibly the most intelligent thing the Bush administration has ever done. I wish politicians always came up with plans like this. Could you imagine how much better off we’d be if Bush was still talking about invading Iraq instead of actually having done it?
I kind of wonder if this plan wasn’t floated out there to get the public’s reaction. If the public had clamored for a bigger bailout, then Paulson probably would have floated a new plan that involved taxpayer monies. As it is, it looks like the public is against a bailout so maybe a huge taxpayer-funded bailout won’t happen.
Of course, I also wonder if this plan isn’t just a destraction. The real bailout may be happening out of site with the changing of how the GSEs, the FHA, and the Federal Home Loan Banks operate.
-
December 8, 2007 at 2:56 PM #112146
TheBreeze
ParticipantYeah, this is actually a pretty good plan. The politicians get to look like they’re doing something and no taxpayer money is involved. This is possibly the most intelligent thing the Bush administration has ever done. I wish politicians always came up with plans like this. Could you imagine how much better off we’d be if Bush was still talking about invading Iraq instead of actually having done it?
I kind of wonder if this plan wasn’t floated out there to get the public’s reaction. If the public had clamored for a bigger bailout, then Paulson probably would have floated a new plan that involved taxpayer monies. As it is, it looks like the public is against a bailout so maybe a huge taxpayer-funded bailout won’t happen.
Of course, I also wonder if this plan isn’t just a destraction. The real bailout may be happening out of site with the changing of how the GSEs, the FHA, and the Federal Home Loan Banks operate.
-
December 8, 2007 at 2:56 PM #112176
TheBreeze
ParticipantYeah, this is actually a pretty good plan. The politicians get to look like they’re doing something and no taxpayer money is involved. This is possibly the most intelligent thing the Bush administration has ever done. I wish politicians always came up with plans like this. Could you imagine how much better off we’d be if Bush was still talking about invading Iraq instead of actually having done it?
I kind of wonder if this plan wasn’t floated out there to get the public’s reaction. If the public had clamored for a bigger bailout, then Paulson probably would have floated a new plan that involved taxpayer monies. As it is, it looks like the public is against a bailout so maybe a huge taxpayer-funded bailout won’t happen.
Of course, I also wonder if this plan isn’t just a destraction. The real bailout may be happening out of site with the changing of how the GSEs, the FHA, and the Federal Home Loan Banks operate.
-
December 8, 2007 at 1:53 PM #112083
bobby
Participantyup. I agree with araya.
as long as it doesn’t involve tax money in this “bail out”, I don’t care if interest rate if frozen or vaporized.
the banks will be even more careful than needed when lending out money now. i.e less buyers and decreased price.
market forces are still at work. -
December 8, 2007 at 1:53 PM #112122
bobby
Participantyup. I agree with araya.
as long as it doesn’t involve tax money in this “bail out”, I don’t care if interest rate if frozen or vaporized.
the banks will be even more careful than needed when lending out money now. i.e less buyers and decreased price.
market forces are still at work. -
December 8, 2007 at 1:53 PM #112131
bobby
Participantyup. I agree with araya.
as long as it doesn’t involve tax money in this “bail out”, I don’t care if interest rate if frozen or vaporized.
the banks will be even more careful than needed when lending out money now. i.e less buyers and decreased price.
market forces are still at work. -
December 8, 2007 at 1:53 PM #112162
bobby
Participantyup. I agree with araya.
as long as it doesn’t involve tax money in this “bail out”, I don’t care if interest rate if frozen or vaporized.
the banks will be even more careful than needed when lending out money now. i.e less buyers and decreased price.
market forces are still at work. -
December 8, 2007 at 1:29 PM #112058
Arraya
ParticipantWhat is better for the investor to take posession of an asset that they could sell for 30-50% less or have some fool pay a lower interest rate on the full vaue. Those are the investor’s choices.
-
December 8, 2007 at 1:29 PM #112094
Arraya
ParticipantWhat is better for the investor to take posession of an asset that they could sell for 30-50% less or have some fool pay a lower interest rate on the full vaue. Those are the investor’s choices.
-
December 8, 2007 at 1:29 PM #112104
Arraya
ParticipantWhat is better for the investor to take posession of an asset that they could sell for 30-50% less or have some fool pay a lower interest rate on the full vaue. Those are the investor’s choices.
-
December 8, 2007 at 1:29 PM #112138
Arraya
ParticipantWhat is better for the investor to take posession of an asset that they could sell for 30-50% less or have some fool pay a lower interest rate on the full vaue. Those are the investor’s choices.
-
December 8, 2007 at 11:58 AM #112043
rocket science
ParticipantAnother article in the LA Times today.
Tom PetrunoThe success of the Bush administration's plan to stem home foreclosures will hinge in large part on whether the investors who own sub-prime mortgages will play along and accept lower interest payments to keep people in their houses.He quotes one of the guys from the video link in the kev374 post above.
Josh Rosner, suggests that a rash of legal challenges to loan modificaions is inevitable.
rs
-
December 8, 2007 at 11:58 AM #112080
rocket science
ParticipantAnother article in the LA Times today.
Tom PetrunoThe success of the Bush administration's plan to stem home foreclosures will hinge in large part on whether the investors who own sub-prime mortgages will play along and accept lower interest payments to keep people in their houses.He quotes one of the guys from the video link in the kev374 post above.
Josh Rosner, suggests that a rash of legal challenges to loan modificaions is inevitable.
rs
-
December 8, 2007 at 11:58 AM #112091
rocket science
ParticipantAnother article in the LA Times today.
Tom PetrunoThe success of the Bush administration's plan to stem home foreclosures will hinge in large part on whether the investors who own sub-prime mortgages will play along and accept lower interest payments to keep people in their houses.He quotes one of the guys from the video link in the kev374 post above.
Josh Rosner, suggests that a rash of legal challenges to loan modificaions is inevitable.
rs
-
December 8, 2007 at 11:58 AM #112123
rocket science
ParticipantAnother article in the LA Times today.
Tom PetrunoThe success of the Bush administration's plan to stem home foreclosures will hinge in large part on whether the investors who own sub-prime mortgages will play along and accept lower interest payments to keep people in their houses.He quotes one of the guys from the video link in the kev374 post above.
Josh Rosner, suggests that a rash of legal challenges to loan modificaions is inevitable.
rs
-
December 8, 2007 at 8:23 AM #111986
Arraya
Participant“I just wonder what % of the population is actually in support of something like this.”
The only percentage that matters is the tiny percentage of people on Wall Street that wrote it.
This a nothing more than a skillful ruse to keep FBs that are upside down on their homes to keep paying. If they knew what was good for them they would run as far away from that house as possible.
Do we really think the BK law that was changed back in 05 was a coincidence. It is just more leverage to keep them in their homes.
-
December 8, 2007 at 8:23 AM #112024
Arraya
Participant“I just wonder what % of the population is actually in support of something like this.”
The only percentage that matters is the tiny percentage of people on Wall Street that wrote it.
This a nothing more than a skillful ruse to keep FBs that are upside down on their homes to keep paying. If they knew what was good for them they would run as far away from that house as possible.
Do we really think the BK law that was changed back in 05 was a coincidence. It is just more leverage to keep them in their homes.
-
December 8, 2007 at 8:23 AM #112035
Arraya
Participant“I just wonder what % of the population is actually in support of something like this.”
The only percentage that matters is the tiny percentage of people on Wall Street that wrote it.
This a nothing more than a skillful ruse to keep FBs that are upside down on their homes to keep paying. If they knew what was good for them they would run as far away from that house as possible.
Do we really think the BK law that was changed back in 05 was a coincidence. It is just more leverage to keep them in their homes.
-
December 8, 2007 at 8:23 AM #112064
Arraya
Participant“I just wonder what % of the population is actually in support of something like this.”
The only percentage that matters is the tiny percentage of people on Wall Street that wrote it.
This a nothing more than a skillful ruse to keep FBs that are upside down on their homes to keep paying. If they knew what was good for them they would run as far away from that house as possible.
Do we really think the BK law that was changed back in 05 was a coincidence. It is just more leverage to keep them in their homes.
-
December 7, 2007 at 8:58 PM #111871
cr
ParticipantI just wonder what % of the population is actually in support of something like this.
The perma-bulls of housing argue that 98% or more of homeowners are paying on time. If so, then why all this trouble for the irresponsible 2%?
They should make this a vote, not election year propaganda. Alt-A and Prime will make sub-prime problems look like the good ‘ol days.
-
December 7, 2007 at 8:58 PM #111910
cr
ParticipantI just wonder what % of the population is actually in support of something like this.
The perma-bulls of housing argue that 98% or more of homeowners are paying on time. If so, then why all this trouble for the irresponsible 2%?
They should make this a vote, not election year propaganda. Alt-A and Prime will make sub-prime problems look like the good ‘ol days.
-
December 7, 2007 at 8:58 PM #111920
cr
ParticipantI just wonder what % of the population is actually in support of something like this.
The perma-bulls of housing argue that 98% or more of homeowners are paying on time. If so, then why all this trouble for the irresponsible 2%?
They should make this a vote, not election year propaganda. Alt-A and Prime will make sub-prime problems look like the good ‘ol days.
-
December 7, 2007 at 8:58 PM #111953
cr
ParticipantI just wonder what % of the population is actually in support of something like this.
The perma-bulls of housing argue that 98% or more of homeowners are paying on time. If so, then why all this trouble for the irresponsible 2%?
They should make this a vote, not election year propaganda. Alt-A and Prime will make sub-prime problems look like the good ‘ol days.
-
December 7, 2007 at 4:27 PM #111812
rocket science
ParticipantSome of these points are similar to Rich’s latest write up.But there is another article right next to this one in the LA Times with a Q&A on the process.Cash-strapped borrowers gain time to improve credit, equityhttp://www.latimes.com/business/la-fi-subprimeqa7dec07,1,380708.story?coll=la-headlines-business&ctrack=5&cset=trueOne excerptWho qualifies for the rate freeze?
First, the residence must be owner-occupied. The borrower must be no more than 30 days late on his or her mortgage payments and have a FICO credit score of 660 or less. The loan must have been originated in January 2005 to July 2007 and have an initial reset date of January 2008 to July 2010. Also, the borrower must have less than 3% equity in the home.And then they include an example where the borrower will pay ~$28,300 less per $100K of loan for the 30 year loan with the freeze, assuming they are paying P&I. Or in other words the bank gets ~$28,300K LESS per $100K of loan for the 30 year loan. Are a lot of lenders going to buy into this?And of course we can surely assume they are most likely a large percentage of interest only loans.And the instigators of this apparently didn’t read this article (courtesy of gary_broker, not sure if it has been in another thread) http://finance.yahoo.com/real-estate/article/103872/Real-Estate:-Buy,-Sell,-or-Hold;_ylt=AoYhL5ognSwCfrwaIJ3.KbC7YWsAwhich uses the rental ratio concept analysis to predict that anyone w/o any equity in their house now (see less tna 3% to qualify above) is sure to be way underwater in 5 years when it is time to reset! Bingo! Almost guarantees they all get foreclosed because they can’t refi then w/o equity!
And then the third LA Times article in today’s paper right next to the other two is the coup de gras.All this might just be too late……. Mortgage delinquency rate risesThe number of Americans who fell behind on their mortgage payments rose to a 20-year high in the third quarter as borrowers were unable to refinance or sell their homes…http://www.latimes.com/business/la-fi-foreclose7dec07,1,6968753.story?coll=la-headlines-business&ctrack=8&cset=true
rs
-
December 7, 2007 at 4:27 PM #111852
rocket science
ParticipantSome of these points are similar to Rich’s latest write up.But there is another article right next to this one in the LA Times with a Q&A on the process.Cash-strapped borrowers gain time to improve credit, equityhttp://www.latimes.com/business/la-fi-subprimeqa7dec07,1,380708.story?coll=la-headlines-business&ctrack=5&cset=trueOne excerptWho qualifies for the rate freeze?
First, the residence must be owner-occupied. The borrower must be no more than 30 days late on his or her mortgage payments and have a FICO credit score of 660 or less. The loan must have been originated in January 2005 to July 2007 and have an initial reset date of January 2008 to July 2010. Also, the borrower must have less than 3% equity in the home.And then they include an example where the borrower will pay ~$28,300 less per $100K of loan for the 30 year loan with the freeze, assuming they are paying P&I. Or in other words the bank gets ~$28,300K LESS per $100K of loan for the 30 year loan. Are a lot of lenders going to buy into this?And of course we can surely assume they are most likely a large percentage of interest only loans.And the instigators of this apparently didn’t read this article (courtesy of gary_broker, not sure if it has been in another thread) http://finance.yahoo.com/real-estate/article/103872/Real-Estate:-Buy,-Sell,-or-Hold;_ylt=AoYhL5ognSwCfrwaIJ3.KbC7YWsAwhich uses the rental ratio concept analysis to predict that anyone w/o any equity in their house now (see less tna 3% to qualify above) is sure to be way underwater in 5 years when it is time to reset! Bingo! Almost guarantees they all get foreclosed because they can’t refi then w/o equity!
And then the third LA Times article in today’s paper right next to the other two is the coup de gras.All this might just be too late……. Mortgage delinquency rate risesThe number of Americans who fell behind on their mortgage payments rose to a 20-year high in the third quarter as borrowers were unable to refinance or sell their homes…http://www.latimes.com/business/la-fi-foreclose7dec07,1,6968753.story?coll=la-headlines-business&ctrack=8&cset=true
rs
-
December 7, 2007 at 4:27 PM #111861
rocket science
ParticipantSome of these points are similar to Rich’s latest write up.But there is another article right next to this one in the LA Times with a Q&A on the process.Cash-strapped borrowers gain time to improve credit, equityhttp://www.latimes.com/business/la-fi-subprimeqa7dec07,1,380708.story?coll=la-headlines-business&ctrack=5&cset=trueOne excerptWho qualifies for the rate freeze?
First, the residence must be owner-occupied. The borrower must be no more than 30 days late on his or her mortgage payments and have a FICO credit score of 660 or less. The loan must have been originated in January 2005 to July 2007 and have an initial reset date of January 2008 to July 2010. Also, the borrower must have less than 3% equity in the home.And then they include an example where the borrower will pay ~$28,300 less per $100K of loan for the 30 year loan with the freeze, assuming they are paying P&I. Or in other words the bank gets ~$28,300K LESS per $100K of loan for the 30 year loan. Are a lot of lenders going to buy into this?And of course we can surely assume they are most likely a large percentage of interest only loans.And the instigators of this apparently didn’t read this article (courtesy of gary_broker, not sure if it has been in another thread) http://finance.yahoo.com/real-estate/article/103872/Real-Estate:-Buy,-Sell,-or-Hold;_ylt=AoYhL5ognSwCfrwaIJ3.KbC7YWsAwhich uses the rental ratio concept analysis to predict that anyone w/o any equity in their house now (see less tna 3% to qualify above) is sure to be way underwater in 5 years when it is time to reset! Bingo! Almost guarantees they all get foreclosed because they can’t refi then w/o equity!
And then the third LA Times article in today’s paper right next to the other two is the coup de gras.All this might just be too late……. Mortgage delinquency rate risesThe number of Americans who fell behind on their mortgage payments rose to a 20-year high in the third quarter as borrowers were unable to refinance or sell their homes…http://www.latimes.com/business/la-fi-foreclose7dec07,1,6968753.story?coll=la-headlines-business&ctrack=8&cset=true
rs
-
December 7, 2007 at 4:27 PM #111893
rocket science
ParticipantSome of these points are similar to Rich’s latest write up.But there is another article right next to this one in the LA Times with a Q&A on the process.Cash-strapped borrowers gain time to improve credit, equityhttp://www.latimes.com/business/la-fi-subprimeqa7dec07,1,380708.story?coll=la-headlines-business&ctrack=5&cset=trueOne excerptWho qualifies for the rate freeze?
First, the residence must be owner-occupied. The borrower must be no more than 30 days late on his or her mortgage payments and have a FICO credit score of 660 or less. The loan must have been originated in January 2005 to July 2007 and have an initial reset date of January 2008 to July 2010. Also, the borrower must have less than 3% equity in the home.And then they include an example where the borrower will pay ~$28,300 less per $100K of loan for the 30 year loan with the freeze, assuming they are paying P&I. Or in other words the bank gets ~$28,300K LESS per $100K of loan for the 30 year loan. Are a lot of lenders going to buy into this?And of course we can surely assume they are most likely a large percentage of interest only loans.And the instigators of this apparently didn’t read this article (courtesy of gary_broker, not sure if it has been in another thread) http://finance.yahoo.com/real-estate/article/103872/Real-Estate:-Buy,-Sell,-or-Hold;_ylt=AoYhL5ognSwCfrwaIJ3.KbC7YWsAwhich uses the rental ratio concept analysis to predict that anyone w/o any equity in their house now (see less tna 3% to qualify above) is sure to be way underwater in 5 years when it is time to reset! Bingo! Almost guarantees they all get foreclosed because they can’t refi then w/o equity!
And then the third LA Times article in today’s paper right next to the other two is the coup de gras.All this might just be too late……. Mortgage delinquency rate risesThe number of Americans who fell behind on their mortgage payments rose to a 20-year high in the third quarter as borrowers were unable to refinance or sell their homes…http://www.latimes.com/business/la-fi-foreclose7dec07,1,6968753.story?coll=la-headlines-business&ctrack=8&cset=true
rs
-
-
December 7, 2007 at 3:25 PM #111734
kev374
ParticipantThis is an interesting read on the long term effects of such a plan:
http://www.cnbc.com/id/22150432
IMHO, home prices will continue to decline rapidly with or without the freeze. Freezing rates doesn’t stop the market from declining. Those that NEED to sell set the comps not those that are off the market.
This freeze will ACCELERATE the decline, why? Because lending will become MUCH tighter in effect further reducing the pool of those who qualify to buy. Less people to buy, lower prices go 🙂
-
December 7, 2007 at 3:25 PM #111777
kev374
ParticipantThis is an interesting read on the long term effects of such a plan:
http://www.cnbc.com/id/22150432
IMHO, home prices will continue to decline rapidly with or without the freeze. Freezing rates doesn’t stop the market from declining. Those that NEED to sell set the comps not those that are off the market.
This freeze will ACCELERATE the decline, why? Because lending will become MUCH tighter in effect further reducing the pool of those who qualify to buy. Less people to buy, lower prices go 🙂
-
December 7, 2007 at 3:25 PM #111788
kev374
ParticipantThis is an interesting read on the long term effects of such a plan:
http://www.cnbc.com/id/22150432
IMHO, home prices will continue to decline rapidly with or without the freeze. Freezing rates doesn’t stop the market from declining. Those that NEED to sell set the comps not those that are off the market.
This freeze will ACCELERATE the decline, why? Because lending will become MUCH tighter in effect further reducing the pool of those who qualify to buy. Less people to buy, lower prices go 🙂
-
December 7, 2007 at 3:25 PM #111816
kev374
ParticipantThis is an interesting read on the long term effects of such a plan:
http://www.cnbc.com/id/22150432
IMHO, home prices will continue to decline rapidly with or without the freeze. Freezing rates doesn’t stop the market from declining. Those that NEED to sell set the comps not those that are off the market.
This freeze will ACCELERATE the decline, why? Because lending will become MUCH tighter in effect further reducing the pool of those who qualify to buy. Less people to buy, lower prices go 🙂
-
December 7, 2007 at 3:26 PM #111617
NeetaT
ParticipantIf you are correct, I will be in low-ball heaven. Of course, it will eat up most of my savings, but none-the-less. If interest rates drive prices, it is a good thing. If a 10% interest rate makes a $500k house a $250k house, then I will pay property tax on $250k. People don’t realize the extent of the property tax burden, because it is absorbed and hidden in the mortgage and thus ignored. I bought my last home with cash and will buy my next home with cash and let me tell you that property tax stings you like a wasp when it is realized.
-
December 7, 2007 at 3:26 PM #111729
NeetaT
ParticipantIf you are correct, I will be in low-ball heaven. Of course, it will eat up most of my savings, but none-the-less. If interest rates drive prices, it is a good thing. If a 10% interest rate makes a $500k house a $250k house, then I will pay property tax on $250k. People don’t realize the extent of the property tax burden, because it is absorbed and hidden in the mortgage and thus ignored. I bought my last home with cash and will buy my next home with cash and let me tell you that property tax stings you like a wasp when it is realized.
-
December 7, 2007 at 3:26 PM #111772
NeetaT
ParticipantIf you are correct, I will be in low-ball heaven. Of course, it will eat up most of my savings, but none-the-less. If interest rates drive prices, it is a good thing. If a 10% interest rate makes a $500k house a $250k house, then I will pay property tax on $250k. People don’t realize the extent of the property tax burden, because it is absorbed and hidden in the mortgage and thus ignored. I bought my last home with cash and will buy my next home with cash and let me tell you that property tax stings you like a wasp when it is realized.
-
December 7, 2007 at 3:26 PM #111783
NeetaT
ParticipantIf you are correct, I will be in low-ball heaven. Of course, it will eat up most of my savings, but none-the-less. If interest rates drive prices, it is a good thing. If a 10% interest rate makes a $500k house a $250k house, then I will pay property tax on $250k. People don’t realize the extent of the property tax burden, because it is absorbed and hidden in the mortgage and thus ignored. I bought my last home with cash and will buy my next home with cash and let me tell you that property tax stings you like a wasp when it is realized.
-
December 7, 2007 at 3:26 PM #111810
NeetaT
ParticipantIf you are correct, I will be in low-ball heaven. Of course, it will eat up most of my savings, but none-the-less. If interest rates drive prices, it is a good thing. If a 10% interest rate makes a $500k house a $250k house, then I will pay property tax on $250k. People don’t realize the extent of the property tax burden, because it is absorbed and hidden in the mortgage and thus ignored. I bought my last home with cash and will buy my next home with cash and let me tell you that property tax stings you like a wasp when it is realized.
-
-
December 7, 2007 at 2:39 PM #111709
pepsi
ParticipantIf the rate freeze works, then the MBS investors will ask for high rates for their money, which will price even more people (even with excellent credit scores) out of market.
When even $150K income can not afford the $600K house, because of tighten lending standard and interest spread, the house price will goes even lower and over-correct……
The end result will be more default and more inventory on the market.
No matter what you do, the price has to go back to the norm. Better no bailout and let the market find its way out than having the bailout and blocking the most efficient way to the recovery.
-
December 7, 2007 at 2:39 PM #111752
pepsi
ParticipantIf the rate freeze works, then the MBS investors will ask for high rates for their money, which will price even more people (even with excellent credit scores) out of market.
When even $150K income can not afford the $600K house, because of tighten lending standard and interest spread, the house price will goes even lower and over-correct……
The end result will be more default and more inventory on the market.
No matter what you do, the price has to go back to the norm. Better no bailout and let the market find its way out than having the bailout and blocking the most efficient way to the recovery.
-
December 7, 2007 at 2:39 PM #111763
pepsi
ParticipantIf the rate freeze works, then the MBS investors will ask for high rates for their money, which will price even more people (even with excellent credit scores) out of market.
When even $150K income can not afford the $600K house, because of tighten lending standard and interest spread, the house price will goes even lower and over-correct……
The end result will be more default and more inventory on the market.
No matter what you do, the price has to go back to the norm. Better no bailout and let the market find its way out than having the bailout and blocking the most efficient way to the recovery.
-
December 7, 2007 at 2:39 PM #111791
pepsi
ParticipantIf the rate freeze works, then the MBS investors will ask for high rates for their money, which will price even more people (even with excellent credit scores) out of market.
When even $150K income can not afford the $600K house, because of tighten lending standard and interest spread, the house price will goes even lower and over-correct……
The end result will be more default and more inventory on the market.
No matter what you do, the price has to go back to the norm. Better no bailout and let the market find its way out than having the bailout and blocking the most efficient way to the recovery.
-
December 8, 2007 at 7:43 PM #112044
CAwireman
ParticipantReally good posts, esp Coop and R Science
The freeze could be largely symbolic and political.
Too much downward real and psychological pressure may be
in effect to bring this aircraft out of a nose dive.Its a measured act of desperation. If the govt wasn’t frightened, the plan wouldn’t have been floated. Its presence merely confirms what we’ve been batting around here for years, loose and deceptive lending by the banks, and reckless spending by home buyers have aligned and the result is dire.
Look at Rich’s report on the September Case-Shiller numbers. Those look bad. Look at the slope of the three tiers. None of those look good. And, they only show activity thru September. Any bets on Oct, Nov, Dec, or in 2008?
We went looking at homes to keep our feelers out last weekend. A seller in CV had listed a home for ~$835K. The down-the-street neighbors who waited for us outside and who also viewed the home, stopped us and said they are selling the same model of home for more like $730K (or lower w/o agents ~$700K?) On the same street, similar model home prices vary by $100K OR MORE!
The mortgage freeze isn’t going to have any significant affect on this market, IMHO. It will continue spiral down.
HiggyBaby
-
December 9, 2007 at 12:08 AM #112145
SD Realtor
ParticipantI got to sneak out and play hockey today… the big conversation amongst the men was this bailout…lots of angst because this crew of guys are all pretty well educated and prudent… most are homeowners although some are renters. In all cases they are all fiscally responsible and everyone was pretty pissed off about the entire shmear…
I am sure you guys have all heard the infamous rumor about Paulson joining the Bush team for future immunity when it is found that GS hoodwinked investors… That one made me laugh today.
At any rate I couldn’t agree more about all of this being
a – about getting votes,
b – having nothing to do with helping people
c – most likely to be challenged by investors
d – not applicable to many people
e – not really having any major effect on the slideHowever as you all know it all does piss me off. Furthermore I think maybe perhaps the backlash to it is something I underestimated which is a very good thing.
Still I am worried about it and the future ploys, announcements, schemes… whatever you want to call them. As long as there are people like Dodd, Schumer, Hillary, Paulson, and others… there will be pandering to lowest common denominator.
SD Realtor
-
December 9, 2007 at 9:24 AM #112175
Arraya
ParticipantAs long as there are people like Dodd, Schumer, Hillary, Paulson, and others… there will be pandering to lowest common denominator.
This is the problem they are all like that. Trciking us that something is good for the populace when it is only good for corporations is the norm in washington. Look at iraq, ethanol subsidies etc… The bottom line is until our politicans stop being corporate slaves nothing will change and they will continue to destroy our country.
IMO most people have their anger misdirected about this subject. They think it is about getting a free lunch. It is obviously not, it is about again tricking financially un-savvy people into a bad idea again. This is what we should all be mad about.
-
December 9, 2007 at 10:20 AM #112206
SD Realtor
ParticipantArraya you have made alot of insightful posts on the subject and I could not agree more with them.
SD Realtor
-
December 9, 2007 at 11:05 AM #112261
NotCranky
ParticipantI wonder what is going to happen when it becomes obvious that the industry is applying a bifurcated rate system with the help of the government. One set of rates for people who can get a welfare rate(to protect the lending system) and another of higher rates, later down the road, for people who behaved responsibly and were not overly leveraged at the time the welfare rates were being given out. So the second group waits for the housing market to fall like it should but pay as much monthly as the welfare cases anyway because of higher rates with no guaranty of when they will come down again. Nice. Unfortuantely I think the group that would be most enfuriated by this is small and resembles many piggs. The rest of us are to some degree conned by the potential benefits or perhaps have the means and can see how to exploit them.
-
December 9, 2007 at 11:05 AM #112376
NotCranky
ParticipantI wonder what is going to happen when it becomes obvious that the industry is applying a bifurcated rate system with the help of the government. One set of rates for people who can get a welfare rate(to protect the lending system) and another of higher rates, later down the road, for people who behaved responsibly and were not overly leveraged at the time the welfare rates were being given out. So the second group waits for the housing market to fall like it should but pay as much monthly as the welfare cases anyway because of higher rates with no guaranty of when they will come down again. Nice. Unfortuantely I think the group that would be most enfuriated by this is small and resembles many piggs. The rest of us are to some degree conned by the potential benefits or perhaps have the means and can see how to exploit them.
-
December 9, 2007 at 11:05 AM #112418
NotCranky
ParticipantI wonder what is going to happen when it becomes obvious that the industry is applying a bifurcated rate system with the help of the government. One set of rates for people who can get a welfare rate(to protect the lending system) and another of higher rates, later down the road, for people who behaved responsibly and were not overly leveraged at the time the welfare rates were being given out. So the second group waits for the housing market to fall like it should but pay as much monthly as the welfare cases anyway because of higher rates with no guaranty of when they will come down again. Nice. Unfortuantely I think the group that would be most enfuriated by this is small and resembles many piggs. The rest of us are to some degree conned by the potential benefits or perhaps have the means and can see how to exploit them.
-
December 9, 2007 at 11:05 AM #112427
NotCranky
ParticipantI wonder what is going to happen when it becomes obvious that the industry is applying a bifurcated rate system with the help of the government. One set of rates for people who can get a welfare rate(to protect the lending system) and another of higher rates, later down the road, for people who behaved responsibly and were not overly leveraged at the time the welfare rates were being given out. So the second group waits for the housing market to fall like it should but pay as much monthly as the welfare cases anyway because of higher rates with no guaranty of when they will come down again. Nice. Unfortuantely I think the group that would be most enfuriated by this is small and resembles many piggs. The rest of us are to some degree conned by the potential benefits or perhaps have the means and can see how to exploit them.
-
December 9, 2007 at 11:05 AM #112460
NotCranky
ParticipantI wonder what is going to happen when it becomes obvious that the industry is applying a bifurcated rate system with the help of the government. One set of rates for people who can get a welfare rate(to protect the lending system) and another of higher rates, later down the road, for people who behaved responsibly and were not overly leveraged at the time the welfare rates were being given out. So the second group waits for the housing market to fall like it should but pay as much monthly as the welfare cases anyway because of higher rates with no guaranty of when they will come down again. Nice. Unfortuantely I think the group that would be most enfuriated by this is small and resembles many piggs. The rest of us are to some degree conned by the potential benefits or perhaps have the means and can see how to exploit them.
-
December 9, 2007 at 10:20 AM #112320
SD Realtor
ParticipantArraya you have made alot of insightful posts on the subject and I could not agree more with them.
SD Realtor
-
December 9, 2007 at 10:20 AM #112362
SD Realtor
ParticipantArraya you have made alot of insightful posts on the subject and I could not agree more with them.
SD Realtor
-
December 9, 2007 at 10:20 AM #112370
SD Realtor
ParticipantArraya you have made alot of insightful posts on the subject and I could not agree more with them.
SD Realtor
-
December 9, 2007 at 10:20 AM #112404
SD Realtor
ParticipantArraya you have made alot of insightful posts on the subject and I could not agree more with them.
SD Realtor
-
December 9, 2007 at 9:24 AM #112292
Arraya
ParticipantAs long as there are people like Dodd, Schumer, Hillary, Paulson, and others… there will be pandering to lowest common denominator.
This is the problem they are all like that. Trciking us that something is good for the populace when it is only good for corporations is the norm in washington. Look at iraq, ethanol subsidies etc… The bottom line is until our politicans stop being corporate slaves nothing will change and they will continue to destroy our country.
IMO most people have their anger misdirected about this subject. They think it is about getting a free lunch. It is obviously not, it is about again tricking financially un-savvy people into a bad idea again. This is what we should all be mad about.
-
December 9, 2007 at 9:24 AM #112330
Arraya
ParticipantAs long as there are people like Dodd, Schumer, Hillary, Paulson, and others… there will be pandering to lowest common denominator.
This is the problem they are all like that. Trciking us that something is good for the populace when it is only good for corporations is the norm in washington. Look at iraq, ethanol subsidies etc… The bottom line is until our politicans stop being corporate slaves nothing will change and they will continue to destroy our country.
IMO most people have their anger misdirected about this subject. They think it is about getting a free lunch. It is obviously not, it is about again tricking financially un-savvy people into a bad idea again. This is what we should all be mad about.
-
December 9, 2007 at 9:24 AM #112343
Arraya
ParticipantAs long as there are people like Dodd, Schumer, Hillary, Paulson, and others… there will be pandering to lowest common denominator.
This is the problem they are all like that. Trciking us that something is good for the populace when it is only good for corporations is the norm in washington. Look at iraq, ethanol subsidies etc… The bottom line is until our politicans stop being corporate slaves nothing will change and they will continue to destroy our country.
IMO most people have their anger misdirected about this subject. They think it is about getting a free lunch. It is obviously not, it is about again tricking financially un-savvy people into a bad idea again. This is what we should all be mad about.
-
December 9, 2007 at 9:24 AM #112373
Arraya
ParticipantAs long as there are people like Dodd, Schumer, Hillary, Paulson, and others… there will be pandering to lowest common denominator.
This is the problem they are all like that. Trciking us that something is good for the populace when it is only good for corporations is the norm in washington. Look at iraq, ethanol subsidies etc… The bottom line is until our politicans stop being corporate slaves nothing will change and they will continue to destroy our country.
IMO most people have their anger misdirected about this subject. They think it is about getting a free lunch. It is obviously not, it is about again tricking financially un-savvy people into a bad idea again. This is what we should all be mad about.
-
-
December 9, 2007 at 12:08 AM #112260
SD Realtor
ParticipantI got to sneak out and play hockey today… the big conversation amongst the men was this bailout…lots of angst because this crew of guys are all pretty well educated and prudent… most are homeowners although some are renters. In all cases they are all fiscally responsible and everyone was pretty pissed off about the entire shmear…
I am sure you guys have all heard the infamous rumor about Paulson joining the Bush team for future immunity when it is found that GS hoodwinked investors… That one made me laugh today.
At any rate I couldn’t agree more about all of this being
a – about getting votes,
b – having nothing to do with helping people
c – most likely to be challenged by investors
d – not applicable to many people
e – not really having any major effect on the slideHowever as you all know it all does piss me off. Furthermore I think maybe perhaps the backlash to it is something I underestimated which is a very good thing.
Still I am worried about it and the future ploys, announcements, schemes… whatever you want to call them. As long as there are people like Dodd, Schumer, Hillary, Paulson, and others… there will be pandering to lowest common denominator.
SD Realtor
-
December 9, 2007 at 12:08 AM #112301
SD Realtor
ParticipantI got to sneak out and play hockey today… the big conversation amongst the men was this bailout…lots of angst because this crew of guys are all pretty well educated and prudent… most are homeowners although some are renters. In all cases they are all fiscally responsible and everyone was pretty pissed off about the entire shmear…
I am sure you guys have all heard the infamous rumor about Paulson joining the Bush team for future immunity when it is found that GS hoodwinked investors… That one made me laugh today.
At any rate I couldn’t agree more about all of this being
a – about getting votes,
b – having nothing to do with helping people
c – most likely to be challenged by investors
d – not applicable to many people
e – not really having any major effect on the slideHowever as you all know it all does piss me off. Furthermore I think maybe perhaps the backlash to it is something I underestimated which is a very good thing.
Still I am worried about it and the future ploys, announcements, schemes… whatever you want to call them. As long as there are people like Dodd, Schumer, Hillary, Paulson, and others… there will be pandering to lowest common denominator.
SD Realtor
-
December 9, 2007 at 12:08 AM #112310
SD Realtor
ParticipantI got to sneak out and play hockey today… the big conversation amongst the men was this bailout…lots of angst because this crew of guys are all pretty well educated and prudent… most are homeowners although some are renters. In all cases they are all fiscally responsible and everyone was pretty pissed off about the entire shmear…
I am sure you guys have all heard the infamous rumor about Paulson joining the Bush team for future immunity when it is found that GS hoodwinked investors… That one made me laugh today.
At any rate I couldn’t agree more about all of this being
a – about getting votes,
b – having nothing to do with helping people
c – most likely to be challenged by investors
d – not applicable to many people
e – not really having any major effect on the slideHowever as you all know it all does piss me off. Furthermore I think maybe perhaps the backlash to it is something I underestimated which is a very good thing.
Still I am worried about it and the future ploys, announcements, schemes… whatever you want to call them. As long as there are people like Dodd, Schumer, Hillary, Paulson, and others… there will be pandering to lowest common denominator.
SD Realtor
-
December 9, 2007 at 12:08 AM #112342
SD Realtor
ParticipantI got to sneak out and play hockey today… the big conversation amongst the men was this bailout…lots of angst because this crew of guys are all pretty well educated and prudent… most are homeowners although some are renters. In all cases they are all fiscally responsible and everyone was pretty pissed off about the entire shmear…
I am sure you guys have all heard the infamous rumor about Paulson joining the Bush team for future immunity when it is found that GS hoodwinked investors… That one made me laugh today.
At any rate I couldn’t agree more about all of this being
a – about getting votes,
b – having nothing to do with helping people
c – most likely to be challenged by investors
d – not applicable to many people
e – not really having any major effect on the slideHowever as you all know it all does piss me off. Furthermore I think maybe perhaps the backlash to it is something I underestimated which is a very good thing.
Still I am worried about it and the future ploys, announcements, schemes… whatever you want to call them. As long as there are people like Dodd, Schumer, Hillary, Paulson, and others… there will be pandering to lowest common denominator.
SD Realtor
-
-
December 8, 2007 at 7:43 PM #112159
CAwireman
ParticipantReally good posts, esp Coop and R Science
The freeze could be largely symbolic and political.
Too much downward real and psychological pressure may be
in effect to bring this aircraft out of a nose dive.Its a measured act of desperation. If the govt wasn’t frightened, the plan wouldn’t have been floated. Its presence merely confirms what we’ve been batting around here for years, loose and deceptive lending by the banks, and reckless spending by home buyers have aligned and the result is dire.
Look at Rich’s report on the September Case-Shiller numbers. Those look bad. Look at the slope of the three tiers. None of those look good. And, they only show activity thru September. Any bets on Oct, Nov, Dec, or in 2008?
We went looking at homes to keep our feelers out last weekend. A seller in CV had listed a home for ~$835K. The down-the-street neighbors who waited for us outside and who also viewed the home, stopped us and said they are selling the same model of home for more like $730K (or lower w/o agents ~$700K?) On the same street, similar model home prices vary by $100K OR MORE!
The mortgage freeze isn’t going to have any significant affect on this market, IMHO. It will continue spiral down.
HiggyBaby
-
December 8, 2007 at 7:43 PM #112203
CAwireman
ParticipantReally good posts, esp Coop and R Science
The freeze could be largely symbolic and political.
Too much downward real and psychological pressure may be
in effect to bring this aircraft out of a nose dive.Its a measured act of desperation. If the govt wasn’t frightened, the plan wouldn’t have been floated. Its presence merely confirms what we’ve been batting around here for years, loose and deceptive lending by the banks, and reckless spending by home buyers have aligned and the result is dire.
Look at Rich’s report on the September Case-Shiller numbers. Those look bad. Look at the slope of the three tiers. None of those look good. And, they only show activity thru September. Any bets on Oct, Nov, Dec, or in 2008?
We went looking at homes to keep our feelers out last weekend. A seller in CV had listed a home for ~$835K. The down-the-street neighbors who waited for us outside and who also viewed the home, stopped us and said they are selling the same model of home for more like $730K (or lower w/o agents ~$700K?) On the same street, similar model home prices vary by $100K OR MORE!
The mortgage freeze isn’t going to have any significant affect on this market, IMHO. It will continue spiral down.
HiggyBaby
-
December 8, 2007 at 7:43 PM #112210
CAwireman
ParticipantReally good posts, esp Coop and R Science
The freeze could be largely symbolic and political.
Too much downward real and psychological pressure may be
in effect to bring this aircraft out of a nose dive.Its a measured act of desperation. If the govt wasn’t frightened, the plan wouldn’t have been floated. Its presence merely confirms what we’ve been batting around here for years, loose and deceptive lending by the banks, and reckless spending by home buyers have aligned and the result is dire.
Look at Rich’s report on the September Case-Shiller numbers. Those look bad. Look at the slope of the three tiers. None of those look good. And, they only show activity thru September. Any bets on Oct, Nov, Dec, or in 2008?
We went looking at homes to keep our feelers out last weekend. A seller in CV had listed a home for ~$835K. The down-the-street neighbors who waited for us outside and who also viewed the home, stopped us and said they are selling the same model of home for more like $730K (or lower w/o agents ~$700K?) On the same street, similar model home prices vary by $100K OR MORE!
The mortgage freeze isn’t going to have any significant affect on this market, IMHO. It will continue spiral down.
HiggyBaby
-
December 8, 2007 at 7:43 PM #112239
CAwireman
ParticipantReally good posts, esp Coop and R Science
The freeze could be largely symbolic and political.
Too much downward real and psychological pressure may be
in effect to bring this aircraft out of a nose dive.Its a measured act of desperation. If the govt wasn’t frightened, the plan wouldn’t have been floated. Its presence merely confirms what we’ve been batting around here for years, loose and deceptive lending by the banks, and reckless spending by home buyers have aligned and the result is dire.
Look at Rich’s report on the September Case-Shiller numbers. Those look bad. Look at the slope of the three tiers. None of those look good. And, they only show activity thru September. Any bets on Oct, Nov, Dec, or in 2008?
We went looking at homes to keep our feelers out last weekend. A seller in CV had listed a home for ~$835K. The down-the-street neighbors who waited for us outside and who also viewed the home, stopped us and said they are selling the same model of home for more like $730K (or lower w/o agents ~$700K?) On the same street, similar model home prices vary by $100K OR MORE!
The mortgage freeze isn’t going to have any significant affect on this market, IMHO. It will continue spiral down.
HiggyBaby
-
-
AuthorPosts
- You must be logged in to reply to this topic.