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March 28, 2007 at 10:30 AM in reply to: Great Reading: 34 % of homeowners are clueless about their mortgage #48617
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ParticipantI was talking to friend of mine last night who bought in 2002. He said his broker called him a fool for not taking an ARM.
He opted for a 20-year fixed, despite the criticism.
I’m still amazed at how foolish people on both sides of the mortgage have been. With brokers like that, you can see how even somewhat informed people could make a bad choice.
This housing crash is going to tarnish the idea of ARMs and Interest only loans for years to come.
ParticipantMy favorite line in the video is from the CNBC reporter:
“We don’t need a recession to cure this…..do we?”
I’m a neophyte to all this, so allow me to ask a rudimentary question: obviously a majortiy of the housing stocks are dropping, so how does shorting them turn a profit? Or am I misunderstanding when you say short?
ParticipantI only hope that by the time California or any other states for that matter, actually get around to deciding on the same issue, the problem will have spiraled so far out of control that the sheer cost by then will prevent any such measure.
March 22, 2007 at 10:22 AM in reply to: Homeowners, Lenders Skirt Default, May Curb U.S. Housing Slump #48255ParticipantThe title is complete BS. I imagine it’s designed to comfort those who have foolishly gotten in over their heads on both sides of the loan application.
Everything but the title of this article indicates banks and owners are going to get hit hard.
“”Banks don’t want to be real estate managers,” said Doug Duncan, chief economist of the mortgage association.”
The article then points out the rise in defaults, pointing to an increase in REO’s which will only end up forcing banks to either hold onto Real Estate for a longer time, or lower prices.
How much “forgiveness” can the banks offer, before they have nothing left but a bunch of empty houses?
ParticipantA lot of what I hear are Bullish expectations that the Fed will cut rates to bail out the housing crash with another stock bubble. The irony is that the housing bubble is generally regarded as having bailed the stock market out after dot.com and 9/11.
If they do cut rates, the cycle continues further devaluing the dollar, and increasing our collective debt, while people take money out of housing and put it into artficially inflated stocks.
What are the chances the FED will actually cut rates?
ParticipantBy “Deinfe” I mean define. I should really check spelling first…
ParticipantMainstream media only ever considers the homeowner and how they are affected by the collapse of the bubble.
No one ever considers the renters and upcoming generation of soon-to-be home buyers. Occasionally they allude to them as waiting on the sidelines to jump into the market before prices start to skyrocket again, but these people don’t have over inflated homes to leverage into bigger homes they couldn’t afford otherwise. They are simply priced out.
No doubt a 50% correction will be a rough ride, and an unwelcome wakeup call to those basking in success from the over inflation, but it is an absolutely necessary correction.
The idea of a government bail out makes me sick. It will only worsen things as people are priced out for an even longer period of time. Not to mention waning demand as baby boomers retire, downsize and, well, move on…
No one has considered these people, and I only hope that ignorance speeds up the correction in housing, and stabilizing of the economy. All they can do is find a way to make enough to survive and wait it out…the correction is coming.
March 14, 2007 at 10:01 AM in reply to: Get fired up! Congress considering bailing out SUB PRIME! #47645ParticipantWhat a joke, I hope this is only political fodder to gain Democratic favor in Congress and the upcoming election.
Is this for homeowners AND Sub Prime lenders?
It would never work. It would only bail out companies that would virtually be unable to operate under re-imposed lending standards, and bail out homeowners who would then just have to give the money to these now useless lenders.
I think I’ll go buy a home I can’t afford so Uncle Sam can give me money to keep it. What BS.
ParticipantNext time I see either of the couples I know that live there I will ask.
ParticipantSDAppraiser,
Stop throwing around your flagrant comments and read what people are saying. This post is about the state of the market being “Realtor Heaven” or not. You said there is a lot of money out there, and no one argues that. But split 22,000 ways, even if more than 50% get $0, still amounts to far less than the clock puncher jobs you’ve pigeon-holed everyone not in Real Estate to.
I never said it WAS or SHOULD BE even, but clearly it is NOT “Heaven.” I only used the even distribution to indicate an something called an “average.” Using an average makes me socialist? And who was complaining about things being unfair?
80% is quite a claim, but even if only 20% got a piece of that pie, it still only amounts to $68k/yr. That won’t even afford the average house. Again, heaven? I don’t think so…
Participanthttp://sandiegocountyrealestatenews.com/index.html
“According to Sandicor [the Multiple Listing Service for San Diego County–MLS], there are over 22,000 licensed real estate agents on the MLS system for Sandicor.”
I imagine there are a lot not listed with Sandicor, but let’s just go with that.
Let’s assume the 25MM is distributed evenly so that’s $1137/mo per agent; $13,637/yr.
Not exactly the high life.
I think I’ll keep my “8-6” and consider becoming an agent part time.
Obtuse is telling people now is a good time to sell or buy.
ParticipantI don’t think anyone commented on the opening line about builders not budging on price. Is that realistic?
Can builders afford to leave how ever many vacant homes they have, empty for years while prices around them plummet?
I don’t think anyone would argue prices where most of the massive new developments have been built are going to be hit the worst. Won’t that just leave the new homes empty longer?
Who cares about a 1-3% lower interest rate for 4 years, if the house 2 streets over, albeit previously lived in, is $200,000 dollars less?
ParticipantI really don’t think the deflation of this massive bubble will be Realtor heaven.
You’re comparing to times when sellers had multiple offers before a house was even listed. Open houses led to on the spot bidding wars.
THAT was Realtor heaven. I don’t think the downturn will be anything but trouble for them. Lower prices will no longer afford the lavish style of the Realtor who made $50k/month, selling multi-million dollar homes that are now rapidly deflating in value.
Do REO/forecloseure sales owned by the bank even need an agent to be sold?
ParticipantHere is the lastest from the Contrarian Chronicles, on MSN this morning.
He says the down payment makes a comeback, and it probably won’t be because the Homeowner can’t afford to buy without it, but because the lender will require the cash.
Maybe it won’t be 20%, but there’s likely going to be some kind of requirement; 5% minimum?
As a renter I hope they make 20% a requirement. It will only serve to lower prices more and FORCE people to save, and not get in over their heads. Though it’s already too $100 billion in loans, according to the article.
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