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September 25, 2008 at 8:23 PM #275757September 25, 2008 at 8:35 PM #275456SD RealtorParticipant
These are interesting times indeed. I am more then a little concerned about what the future will bring. We have seen the transformation that many thought would not be possible. For all those who posted the demise of investment banks and Wall St criminals going away, this is a sobering wakeup call. This is what many of us here actually predicted, that there cannot and will not be a free market response to the bubble. In a sad and predictable manner we are witnessing the true socialization of our lending industry and the housing market to follow.
What many should not do is to believe this is the last measure; conversely this is one of many MORE measures that we will see. Men like Barney Frank, Charles Schumer, Chris Dodd, who hailed the GSEs and home ownership are now the chief architects of how to deal with the problems they helped to create.
What will it mean for housing? To be more specific our region here in SD?
Not sure. One thing that is not clear to me is the future of loan servicing. This has great bearing on future foreclosures or lack thereof. Understand, there are NO MORE RULES. The feds get to make em up as they go. Foreclosure timelines, loan modifications, principal writedowns, there is NOTHING that cannot be changed. Attached to one of the many previous versions of the bailout was the ugly provision to LET JUDGES HALT FORECLOSURES.
I will say the same damn thing I have said since I joined here. Do not underestimate the lengths that this government will go to simply slow this all down. Two years ago I was 90% sure we hit bottom in 2010-2012. Last year it was 70%. Now I am about 25% confident on a bottom in the next 3 years. I am now much more inclined to see a long slow flat market that is under a monsterous manipulative influence of the government. Heavy subsidization IMO will be created to keep inventory levels more or less in line by working out deals with existing homeowners.
I am not saying there will not be drops. Perhaps even big drops. I just am not sure… I tend to think the drops will be in the more desireable areas now. I think lower end markets will soon reach investment grade levels that will lead to purchases for investments. If we do see a fast runup in treasuries and/or the yield spreads then we could see more rapid depreciation.
I do know many people that did purchase recently but every one of them that I know did so with open eyes and minds. They knew the market conditions and they were purchasing for a long horizon. Right or wrong I do not see ANY purchases made for speculative reasons anymore with the exception of cash purchases at trustee sales.
Hopefully we will get those steep declines in Carmel Valley that people are looking for. Not so sure it will happen. Those in distress may soon simply go the biggest lender in the world now to rework, delay, or write down the loans that many of us were previously counting on to default. It cannot and will not happen for everyone, but it is foolhearty to think it will not happen for some if not many of them.
September 25, 2008 at 8:35 PM #275708SD RealtorParticipantThese are interesting times indeed. I am more then a little concerned about what the future will bring. We have seen the transformation that many thought would not be possible. For all those who posted the demise of investment banks and Wall St criminals going away, this is a sobering wakeup call. This is what many of us here actually predicted, that there cannot and will not be a free market response to the bubble. In a sad and predictable manner we are witnessing the true socialization of our lending industry and the housing market to follow.
What many should not do is to believe this is the last measure; conversely this is one of many MORE measures that we will see. Men like Barney Frank, Charles Schumer, Chris Dodd, who hailed the GSEs and home ownership are now the chief architects of how to deal with the problems they helped to create.
What will it mean for housing? To be more specific our region here in SD?
Not sure. One thing that is not clear to me is the future of loan servicing. This has great bearing on future foreclosures or lack thereof. Understand, there are NO MORE RULES. The feds get to make em up as they go. Foreclosure timelines, loan modifications, principal writedowns, there is NOTHING that cannot be changed. Attached to one of the many previous versions of the bailout was the ugly provision to LET JUDGES HALT FORECLOSURES.
I will say the same damn thing I have said since I joined here. Do not underestimate the lengths that this government will go to simply slow this all down. Two years ago I was 90% sure we hit bottom in 2010-2012. Last year it was 70%. Now I am about 25% confident on a bottom in the next 3 years. I am now much more inclined to see a long slow flat market that is under a monsterous manipulative influence of the government. Heavy subsidization IMO will be created to keep inventory levels more or less in line by working out deals with existing homeowners.
I am not saying there will not be drops. Perhaps even big drops. I just am not sure… I tend to think the drops will be in the more desireable areas now. I think lower end markets will soon reach investment grade levels that will lead to purchases for investments. If we do see a fast runup in treasuries and/or the yield spreads then we could see more rapid depreciation.
I do know many people that did purchase recently but every one of them that I know did so with open eyes and minds. They knew the market conditions and they were purchasing for a long horizon. Right or wrong I do not see ANY purchases made for speculative reasons anymore with the exception of cash purchases at trustee sales.
Hopefully we will get those steep declines in Carmel Valley that people are looking for. Not so sure it will happen. Those in distress may soon simply go the biggest lender in the world now to rework, delay, or write down the loans that many of us were previously counting on to default. It cannot and will not happen for everyone, but it is foolhearty to think it will not happen for some if not many of them.
September 25, 2008 at 8:35 PM #275710SD RealtorParticipantThese are interesting times indeed. I am more then a little concerned about what the future will bring. We have seen the transformation that many thought would not be possible. For all those who posted the demise of investment banks and Wall St criminals going away, this is a sobering wakeup call. This is what many of us here actually predicted, that there cannot and will not be a free market response to the bubble. In a sad and predictable manner we are witnessing the true socialization of our lending industry and the housing market to follow.
What many should not do is to believe this is the last measure; conversely this is one of many MORE measures that we will see. Men like Barney Frank, Charles Schumer, Chris Dodd, who hailed the GSEs and home ownership are now the chief architects of how to deal with the problems they helped to create.
What will it mean for housing? To be more specific our region here in SD?
Not sure. One thing that is not clear to me is the future of loan servicing. This has great bearing on future foreclosures or lack thereof. Understand, there are NO MORE RULES. The feds get to make em up as they go. Foreclosure timelines, loan modifications, principal writedowns, there is NOTHING that cannot be changed. Attached to one of the many previous versions of the bailout was the ugly provision to LET JUDGES HALT FORECLOSURES.
I will say the same damn thing I have said since I joined here. Do not underestimate the lengths that this government will go to simply slow this all down. Two years ago I was 90% sure we hit bottom in 2010-2012. Last year it was 70%. Now I am about 25% confident on a bottom in the next 3 years. I am now much more inclined to see a long slow flat market that is under a monsterous manipulative influence of the government. Heavy subsidization IMO will be created to keep inventory levels more or less in line by working out deals with existing homeowners.
I am not saying there will not be drops. Perhaps even big drops. I just am not sure… I tend to think the drops will be in the more desireable areas now. I think lower end markets will soon reach investment grade levels that will lead to purchases for investments. If we do see a fast runup in treasuries and/or the yield spreads then we could see more rapid depreciation.
I do know many people that did purchase recently but every one of them that I know did so with open eyes and minds. They knew the market conditions and they were purchasing for a long horizon. Right or wrong I do not see ANY purchases made for speculative reasons anymore with the exception of cash purchases at trustee sales.
Hopefully we will get those steep declines in Carmel Valley that people are looking for. Not so sure it will happen. Those in distress may soon simply go the biggest lender in the world now to rework, delay, or write down the loans that many of us were previously counting on to default. It cannot and will not happen for everyone, but it is foolhearty to think it will not happen for some if not many of them.
September 25, 2008 at 8:35 PM #275759SD RealtorParticipantThese are interesting times indeed. I am more then a little concerned about what the future will bring. We have seen the transformation that many thought would not be possible. For all those who posted the demise of investment banks and Wall St criminals going away, this is a sobering wakeup call. This is what many of us here actually predicted, that there cannot and will not be a free market response to the bubble. In a sad and predictable manner we are witnessing the true socialization of our lending industry and the housing market to follow.
What many should not do is to believe this is the last measure; conversely this is one of many MORE measures that we will see. Men like Barney Frank, Charles Schumer, Chris Dodd, who hailed the GSEs and home ownership are now the chief architects of how to deal with the problems they helped to create.
What will it mean for housing? To be more specific our region here in SD?
Not sure. One thing that is not clear to me is the future of loan servicing. This has great bearing on future foreclosures or lack thereof. Understand, there are NO MORE RULES. The feds get to make em up as they go. Foreclosure timelines, loan modifications, principal writedowns, there is NOTHING that cannot be changed. Attached to one of the many previous versions of the bailout was the ugly provision to LET JUDGES HALT FORECLOSURES.
I will say the same damn thing I have said since I joined here. Do not underestimate the lengths that this government will go to simply slow this all down. Two years ago I was 90% sure we hit bottom in 2010-2012. Last year it was 70%. Now I am about 25% confident on a bottom in the next 3 years. I am now much more inclined to see a long slow flat market that is under a monsterous manipulative influence of the government. Heavy subsidization IMO will be created to keep inventory levels more or less in line by working out deals with existing homeowners.
I am not saying there will not be drops. Perhaps even big drops. I just am not sure… I tend to think the drops will be in the more desireable areas now. I think lower end markets will soon reach investment grade levels that will lead to purchases for investments. If we do see a fast runup in treasuries and/or the yield spreads then we could see more rapid depreciation.
I do know many people that did purchase recently but every one of them that I know did so with open eyes and minds. They knew the market conditions and they were purchasing for a long horizon. Right or wrong I do not see ANY purchases made for speculative reasons anymore with the exception of cash purchases at trustee sales.
Hopefully we will get those steep declines in Carmel Valley that people are looking for. Not so sure it will happen. Those in distress may soon simply go the biggest lender in the world now to rework, delay, or write down the loans that many of us were previously counting on to default. It cannot and will not happen for everyone, but it is foolhearty to think it will not happen for some if not many of them.
September 25, 2008 at 8:35 PM #275777SD RealtorParticipantThese are interesting times indeed. I am more then a little concerned about what the future will bring. We have seen the transformation that many thought would not be possible. For all those who posted the demise of investment banks and Wall St criminals going away, this is a sobering wakeup call. This is what many of us here actually predicted, that there cannot and will not be a free market response to the bubble. In a sad and predictable manner we are witnessing the true socialization of our lending industry and the housing market to follow.
What many should not do is to believe this is the last measure; conversely this is one of many MORE measures that we will see. Men like Barney Frank, Charles Schumer, Chris Dodd, who hailed the GSEs and home ownership are now the chief architects of how to deal with the problems they helped to create.
What will it mean for housing? To be more specific our region here in SD?
Not sure. One thing that is not clear to me is the future of loan servicing. This has great bearing on future foreclosures or lack thereof. Understand, there are NO MORE RULES. The feds get to make em up as they go. Foreclosure timelines, loan modifications, principal writedowns, there is NOTHING that cannot be changed. Attached to one of the many previous versions of the bailout was the ugly provision to LET JUDGES HALT FORECLOSURES.
I will say the same damn thing I have said since I joined here. Do not underestimate the lengths that this government will go to simply slow this all down. Two years ago I was 90% sure we hit bottom in 2010-2012. Last year it was 70%. Now I am about 25% confident on a bottom in the next 3 years. I am now much more inclined to see a long slow flat market that is under a monsterous manipulative influence of the government. Heavy subsidization IMO will be created to keep inventory levels more or less in line by working out deals with existing homeowners.
I am not saying there will not be drops. Perhaps even big drops. I just am not sure… I tend to think the drops will be in the more desireable areas now. I think lower end markets will soon reach investment grade levels that will lead to purchases for investments. If we do see a fast runup in treasuries and/or the yield spreads then we could see more rapid depreciation.
I do know many people that did purchase recently but every one of them that I know did so with open eyes and minds. They knew the market conditions and they were purchasing for a long horizon. Right or wrong I do not see ANY purchases made for speculative reasons anymore with the exception of cash purchases at trustee sales.
Hopefully we will get those steep declines in Carmel Valley that people are looking for. Not so sure it will happen. Those in distress may soon simply go the biggest lender in the world now to rework, delay, or write down the loans that many of us were previously counting on to default. It cannot and will not happen for everyone, but it is foolhearty to think it will not happen for some if not many of them.
September 25, 2008 at 9:25 PM #275481peterbParticipantReal unemployment in CA is probably around 10% and rising. Alt A, Prime and jumbo prime are lining up to be a foreclosure storm. Upside down walk-aways are ramping up.These are loans that probably concentrate inthe upper tier areas. What a combo! There’s a good chance that congress will try to intervene. But the speed and effectiveness will be critical.
As other countries around the world see what we’re doing and begin to experience their own recessions, there’s a good chance they will start to pull away from our debt markets and holding their US$. There’s lots of evidence of this happening right now.
What happens when the the US goes to float more Treasuries and there’s no takers? Raise the rate? There may be very strong mechanisms that wont allow a rescue for homeowners. But if a plan is put in place, it could have such devistation on the value of the US$ as to be the same as a major housing price reduction anyway.
September 25, 2008 at 9:25 PM #275733peterbParticipantReal unemployment in CA is probably around 10% and rising. Alt A, Prime and jumbo prime are lining up to be a foreclosure storm. Upside down walk-aways are ramping up.These are loans that probably concentrate inthe upper tier areas. What a combo! There’s a good chance that congress will try to intervene. But the speed and effectiveness will be critical.
As other countries around the world see what we’re doing and begin to experience their own recessions, there’s a good chance they will start to pull away from our debt markets and holding their US$. There’s lots of evidence of this happening right now.
What happens when the the US goes to float more Treasuries and there’s no takers? Raise the rate? There may be very strong mechanisms that wont allow a rescue for homeowners. But if a plan is put in place, it could have such devistation on the value of the US$ as to be the same as a major housing price reduction anyway.
September 25, 2008 at 9:25 PM #275735peterbParticipantReal unemployment in CA is probably around 10% and rising. Alt A, Prime and jumbo prime are lining up to be a foreclosure storm. Upside down walk-aways are ramping up.These are loans that probably concentrate inthe upper tier areas. What a combo! There’s a good chance that congress will try to intervene. But the speed and effectiveness will be critical.
As other countries around the world see what we’re doing and begin to experience their own recessions, there’s a good chance they will start to pull away from our debt markets and holding their US$. There’s lots of evidence of this happening right now.
What happens when the the US goes to float more Treasuries and there’s no takers? Raise the rate? There may be very strong mechanisms that wont allow a rescue for homeowners. But if a plan is put in place, it could have such devistation on the value of the US$ as to be the same as a major housing price reduction anyway.
September 25, 2008 at 9:25 PM #275784peterbParticipantReal unemployment in CA is probably around 10% and rising. Alt A, Prime and jumbo prime are lining up to be a foreclosure storm. Upside down walk-aways are ramping up.These are loans that probably concentrate inthe upper tier areas. What a combo! There’s a good chance that congress will try to intervene. But the speed and effectiveness will be critical.
As other countries around the world see what we’re doing and begin to experience their own recessions, there’s a good chance they will start to pull away from our debt markets and holding their US$. There’s lots of evidence of this happening right now.
What happens when the the US goes to float more Treasuries and there’s no takers? Raise the rate? There may be very strong mechanisms that wont allow a rescue for homeowners. But if a plan is put in place, it could have such devistation on the value of the US$ as to be the same as a major housing price reduction anyway.
September 25, 2008 at 9:25 PM #275801peterbParticipantReal unemployment in CA is probably around 10% and rising. Alt A, Prime and jumbo prime are lining up to be a foreclosure storm. Upside down walk-aways are ramping up.These are loans that probably concentrate inthe upper tier areas. What a combo! There’s a good chance that congress will try to intervene. But the speed and effectiveness will be critical.
As other countries around the world see what we’re doing and begin to experience their own recessions, there’s a good chance they will start to pull away from our debt markets and holding their US$. There’s lots of evidence of this happening right now.
What happens when the the US goes to float more Treasuries and there’s no takers? Raise the rate? There may be very strong mechanisms that wont allow a rescue for homeowners. But if a plan is put in place, it could have such devistation on the value of the US$ as to be the same as a major housing price reduction anyway.
September 25, 2008 at 9:57 PM #275541patientlywaitingParticipantSD Realtor, there nothing the government can do at this point.
If people can’t afford a house, giving them forbearance is not going to help. It just delays in inevitable.
The government will not write-off principal without homeowners giving up present or future equity. You’d have to be an idiot to agree. Better to walk away and be done with it.
If the gov’t interferes and it becomes common knowledge that some homeowners are getting breaks, then everyone will demand a share of the pie. People will stop making mortgage payments to qualify for bailout and that will cause things to get even worse.
SD Realtor, are you still placing low-balls?
September 25, 2008 at 9:57 PM #275793patientlywaitingParticipantSD Realtor, there nothing the government can do at this point.
If people can’t afford a house, giving them forbearance is not going to help. It just delays in inevitable.
The government will not write-off principal without homeowners giving up present or future equity. You’d have to be an idiot to agree. Better to walk away and be done with it.
If the gov’t interferes and it becomes common knowledge that some homeowners are getting breaks, then everyone will demand a share of the pie. People will stop making mortgage payments to qualify for bailout and that will cause things to get even worse.
SD Realtor, are you still placing low-balls?
September 25, 2008 at 9:57 PM #275796patientlywaitingParticipantSD Realtor, there nothing the government can do at this point.
If people can’t afford a house, giving them forbearance is not going to help. It just delays in inevitable.
The government will not write-off principal without homeowners giving up present or future equity. You’d have to be an idiot to agree. Better to walk away and be done with it.
If the gov’t interferes and it becomes common knowledge that some homeowners are getting breaks, then everyone will demand a share of the pie. People will stop making mortgage payments to qualify for bailout and that will cause things to get even worse.
SD Realtor, are you still placing low-balls?
September 25, 2008 at 9:57 PM #275844patientlywaitingParticipantSD Realtor, there nothing the government can do at this point.
If people can’t afford a house, giving them forbearance is not going to help. It just delays in inevitable.
The government will not write-off principal without homeowners giving up present or future equity. You’d have to be an idiot to agree. Better to walk away and be done with it.
If the gov’t interferes and it becomes common knowledge that some homeowners are getting breaks, then everyone will demand a share of the pie. People will stop making mortgage payments to qualify for bailout and that will cause things to get even worse.
SD Realtor, are you still placing low-balls?
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