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cr
ParticipantWildomar is epitomizes the term “bedroom community”. I grew up there (yes it is a middle school) although that area is close to Murrieta and nice for Wildomar.
At the peak there were $750,000 McMansions in an area where the best jobs until you get to Temecula are in school districts.
Maybe the builders are defaulting on their loans.
That or someone stole the sign and put it in front of their own house.
cr
ParticipantWildomar is epitomizes the term “bedroom community”. I grew up there (yes it is a middle school) although that area is close to Murrieta and nice for Wildomar.
At the peak there were $750,000 McMansions in an area where the best jobs until you get to Temecula are in school districts.
Maybe the builders are defaulting on their loans.
That or someone stole the sign and put it in front of their own house.
cr
ParticipantWildomar is epitomizes the term “bedroom community”. I grew up there (yes it is a middle school) although that area is close to Murrieta and nice for Wildomar.
At the peak there were $750,000 McMansions in an area where the best jobs until you get to Temecula are in school districts.
Maybe the builders are defaulting on their loans.
That or someone stole the sign and put it in front of their own house.
August 19, 2008 at 3:31 PM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #258805cr
Participant[quote=5yearwaiter]Is any one else thinking about the new housing bill that gave flex to “whoever in the ARM need to refinance now may get blessed with 87 % of new apprisal value”?. As per this, do you still think the home prices may go down to 2000 level[/quote]
The housing bill is a joke. It’s only a bail out for Fannie and Freddie, and it will do very little in CA. To be able to refinance at a lower rate the banks have to agree to take an additional 10% loss in a market like CA where prices have already dropped 30% or more. Even if the banks will do that the homeowner still has to qualify under 30 year fixed, while actually proving their income. Then when they go to sell up to 50% of their equity goes back to the government.
What do you think people are going to do? They’ll just stop paying and wait for the Sherriff to come knocking.
August 19, 2008 at 3:31 PM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #258996cr
Participant[quote=5yearwaiter]Is any one else thinking about the new housing bill that gave flex to “whoever in the ARM need to refinance now may get blessed with 87 % of new apprisal value”?. As per this, do you still think the home prices may go down to 2000 level[/quote]
The housing bill is a joke. It’s only a bail out for Fannie and Freddie, and it will do very little in CA. To be able to refinance at a lower rate the banks have to agree to take an additional 10% loss in a market like CA where prices have already dropped 30% or more. Even if the banks will do that the homeowner still has to qualify under 30 year fixed, while actually proving their income. Then when they go to sell up to 50% of their equity goes back to the government.
What do you think people are going to do? They’ll just stop paying and wait for the Sherriff to come knocking.
August 19, 2008 at 3:31 PM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #259008cr
Participant[quote=5yearwaiter]Is any one else thinking about the new housing bill that gave flex to “whoever in the ARM need to refinance now may get blessed with 87 % of new apprisal value”?. As per this, do you still think the home prices may go down to 2000 level[/quote]
The housing bill is a joke. It’s only a bail out for Fannie and Freddie, and it will do very little in CA. To be able to refinance at a lower rate the banks have to agree to take an additional 10% loss in a market like CA where prices have already dropped 30% or more. Even if the banks will do that the homeowner still has to qualify under 30 year fixed, while actually proving their income. Then when they go to sell up to 50% of their equity goes back to the government.
What do you think people are going to do? They’ll just stop paying and wait for the Sherriff to come knocking.
August 19, 2008 at 3:31 PM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #259057cr
Participant[quote=5yearwaiter]Is any one else thinking about the new housing bill that gave flex to “whoever in the ARM need to refinance now may get blessed with 87 % of new apprisal value”?. As per this, do you still think the home prices may go down to 2000 level[/quote]
The housing bill is a joke. It’s only a bail out for Fannie and Freddie, and it will do very little in CA. To be able to refinance at a lower rate the banks have to agree to take an additional 10% loss in a market like CA where prices have already dropped 30% or more. Even if the banks will do that the homeowner still has to qualify under 30 year fixed, while actually proving their income. Then when they go to sell up to 50% of their equity goes back to the government.
What do you think people are going to do? They’ll just stop paying and wait for the Sherriff to come knocking.
August 19, 2008 at 3:31 PM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #259098cr
Participant[quote=5yearwaiter]Is any one else thinking about the new housing bill that gave flex to “whoever in the ARM need to refinance now may get blessed with 87 % of new apprisal value”?. As per this, do you still think the home prices may go down to 2000 level[/quote]
The housing bill is a joke. It’s only a bail out for Fannie and Freddie, and it will do very little in CA. To be able to refinance at a lower rate the banks have to agree to take an additional 10% loss in a market like CA where prices have already dropped 30% or more. Even if the banks will do that the homeowner still has to qualify under 30 year fixed, while actually proving their income. Then when they go to sell up to 50% of their equity goes back to the government.
What do you think people are going to do? They’ll just stop paying and wait for the Sherriff to come knocking.
cr
ParticipantBecause the US government in charge of fixing the housing crisis just set aside $800 Billion in money we don’t have to guarantee the inflated value of toilet paper in the form of $5 Trillion in mortgages.
Do the math, and you could say they expect up to 1/5 of the mortgages they own to fail, but that’s okay, the US taxpayer will guarantee them anyway.
Congrats, we are now on the hook for reckless investments into subprime mortgages by F&F’s biggest investor – China.
cr
ParticipantBecause the US government in charge of fixing the housing crisis just set aside $800 Billion in money we don’t have to guarantee the inflated value of toilet paper in the form of $5 Trillion in mortgages.
Do the math, and you could say they expect up to 1/5 of the mortgages they own to fail, but that’s okay, the US taxpayer will guarantee them anyway.
Congrats, we are now on the hook for reckless investments into subprime mortgages by F&F’s biggest investor – China.
cr
ParticipantBecause the US government in charge of fixing the housing crisis just set aside $800 Billion in money we don’t have to guarantee the inflated value of toilet paper in the form of $5 Trillion in mortgages.
Do the math, and you could say they expect up to 1/5 of the mortgages they own to fail, but that’s okay, the US taxpayer will guarantee them anyway.
Congrats, we are now on the hook for reckless investments into subprime mortgages by F&F’s biggest investor – China.
cr
ParticipantBecause the US government in charge of fixing the housing crisis just set aside $800 Billion in money we don’t have to guarantee the inflated value of toilet paper in the form of $5 Trillion in mortgages.
Do the math, and you could say they expect up to 1/5 of the mortgages they own to fail, but that’s okay, the US taxpayer will guarantee them anyway.
Congrats, we are now on the hook for reckless investments into subprime mortgages by F&F’s biggest investor – China.
cr
ParticipantBecause the US government in charge of fixing the housing crisis just set aside $800 Billion in money we don’t have to guarantee the inflated value of toilet paper in the form of $5 Trillion in mortgages.
Do the math, and you could say they expect up to 1/5 of the mortgages they own to fail, but that’s okay, the US taxpayer will guarantee them anyway.
Congrats, we are now on the hook for reckless investments into subprime mortgages by F&F’s biggest investor – China.
August 18, 2008 at 12:39 PM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #258563cr
Participant[quote=DaCounselor]”I’m from the “being early is being wrong” school. Instead of calling a top in ’01, anyone who bought then is likely to still have a tremendous return on their investment.
________________________Only if they sold!
________________________Nope. Most people who are still holding an ’01 purchase are still way up. Like I said in my earlier post, they could probably discount their property today to sell it fast and still be way up. There is really no way around the fact that someone who called the top in ’01 and therefore decided not to buy then has missed out on making a large pile of money.
[/quote]What I think Kewp means is the equity they may have (assuming they didn’t tap it with a HELOC) is only gained when they sell. Equity is essentially useless unless you’re borrowing against it or selling the asset. (or for bragging rights)
You only missed out on making money in a speculative bubble, where you had to time the jump in and out properly. If you try to get out now you’d be lucky to get a 2001 price in some areas.
And even if you bought in 2001, didn’t refi and have equity you are going to lose it. There’s nothing to stop prices from falling below 2001 levels.
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