Why did foreclosures in CA peak in 1996 ?

[svelte]

Actually, the numbers gn referred to were for California as a whole, not San Diego county.

The activities at Miramar and General Dynamics at that time would have been but a tiny blip on the radar of California.

[cr]

I’m no expert, but I think FSD is on to the answer.

You don’t need to foreclose if you can sell and cover your loan.

Foreclosures are by nature a vicious downward sprial that will force prices to the bottom, determined eventually by how many people are in houses they shouldn’t be in, and at what point enough people are able to start buying those empty houses.

You can see why Gov’t intervention is so problematic. Keeping property values high means someone still has to be able to afford the house.

Bailing people out with lower interest rates and write-downs does nothing to help inventory or future buyers.

Prices will fall until they reach an equilibrium of the historical price to income ratio. Even then, prices will probably overshoot. They did before.

[cr]

I’m no expert, but I think FSD is on to the answer.

You don’t need to foreclose if you can sell and cover your loan.

Foreclosures are by nature a vicious downward sprial that will force prices to the bottom, determined eventually by how many people are in houses they shouldn’t be in, and at what point enough people are able to start buying those empty houses.

You can see why Gov’t intervention is so problematic. Keeping property values high means someone still has to be able to afford the house.

Bailing people out with lower interest rates and write-downs does nothing to help inventory or future buyers.

Prices will fall until they reach an equilibrium of the historical price to income ratio. Even then, prices will probably overshoot. They did before.

[cr]

I’m no expert, but I think FSD is on to the answer.

You don’t need to foreclose if you can sell and cover your loan.

Foreclosures are by nature a vicious downward sprial that will force prices to the bottom, determined eventually by how many people are in houses they shouldn’t be in, and at what point enough people are able to start buying those empty houses.

You can see why Gov’t intervention is so problematic. Keeping property values high means someone still has to be able to afford the house.

Bailing people out with lower interest rates and write-downs does nothing to help inventory or future buyers.

Prices will fall until they reach an equilibrium of the historical price to income ratio. Even then, prices will probably overshoot. They did before.

[cr]

I’m no expert, but I think FSD is on to the answer.

You don’t need to foreclose if you can sell and cover your loan.

Foreclosures are by nature a vicious downward sprial that will force prices to the bottom, determined eventually by how many people are in houses they shouldn’t be in, and at what point enough people are able to start buying those empty houses.

You can see why Gov’t intervention is so problematic. Keeping property values high means someone still has to be able to afford the house.

Bailing people out with lower interest rates and write-downs does nothing to help inventory or future buyers.

Prices will fall until they reach an equilibrium of the historical price to income ratio. Even then, prices will probably overshoot. They did before.

[cr]

I’m no expert, but I think FSD is on to the answer.

You don’t need to foreclose if you can sell and cover your loan.

Foreclosures are by nature a vicious downward sprial that will force prices to the bottom, determined eventually by how many people are in houses they shouldn’t be in, and at what point enough people are able to start buying those empty houses.

You can see why Gov’t intervention is so problematic. Keeping property values high means someone still has to be able to afford the house.

Bailing people out with lower interest rates and write-downs does nothing to help inventory or future buyers.

Prices will fall until they reach an equilibrium of the historical price to income ratio. Even then, prices will probably overshoot. They did before.

[La Jolla Renter]

I don’t think we had recovered nicely in 94/95, maybe 96/97. Could it be that homeowners bought another home at the bottom and dumped the looser. Or homeowners held on as long as the could and then stopped paying and enjoyed free rent for a year.

I think there are a lot of investors and homeowners that have been hanging on for the last year or so, and are loosing the will to fight a loosing battle.

I have a few friends that can afford the negative cash flow on their investment properties but are strategically planning to bail.

The more that bail… the more that bail.

[La Jolla Renter]

I don’t think we had recovered nicely in 94/95, maybe 96/97. Could it be that homeowners bought another home at the bottom and dumped the looser. Or homeowners held on as long as the could and then stopped paying and enjoyed free rent for a year.

I think there are a lot of investors and homeowners that have been hanging on for the last year or so, and are loosing the will to fight a loosing battle.

I have a few friends that can afford the negative cash flow on their investment properties but are strategically planning to bail.

The more that bail… the more that bail.

[La Jolla Renter]

I don’t think we had recovered nicely in 94/95, maybe 96/97. Could it be that homeowners bought another home at the bottom and dumped the looser. Or homeowners held on as long as the could and then stopped paying and enjoyed free rent for a year.

I think there are a lot of investors and homeowners that have been hanging on for the last year or so, and are loosing the will to fight a loosing battle.

I have a few friends that can afford the negative cash flow on their investment properties but are strategically planning to bail.

The more that bail… the more that bail.

[La Jolla Renter]

I don’t think we had recovered nicely in 94/95, maybe 96/97. Could it be that homeowners bought another home at the bottom and dumped the looser. Or homeowners held on as long as the could and then stopped paying and enjoyed free rent for a year.

I think there are a lot of investors and homeowners that have been hanging on for the last year or so, and are loosing the will to fight a loosing battle.

I have a few friends that can afford the negative cash flow on their investment properties but are strategically planning to bail.

The more that bail… the more that bail.

[La Jolla Renter]

I don’t think we had recovered nicely in 94/95, maybe 96/97. Could it be that homeowners bought another home at the bottom and dumped the looser. Or homeowners held on as long as the could and then stopped paying and enjoyed free rent for a year.

I think there are a lot of investors and homeowners that have been hanging on for the last year or so, and are loosing the will to fight a loosing battle.

I have a few friends that can afford the negative cash flow on their investment properties but are strategically planning to bail.

The more that bail… the more that bail.

[Author]

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