[Ex-SD]

Well, I think we can agree that we won’t see any more families with incomes of only $50k buying $600k houses in SoCal (or anywhere else)

[Ex-SD]

Well, I think we can agree that we won’t see any more families with incomes of only $50k buying $600k houses in SoCal (or anywhere else)

[Ex-SD]

Morality has nothing to do with it.
Emotion should have nothing to do with it.
A contract is a contract.
The lender’s lawyers writes the contracts. The buyer must sign the lender’s contract or walk away from the deal. If the lender is in total control of the language in the contract and the buyer quits paying, the bank gets the property back which is exactly what their lawyer’s wrote in the contract.
Where’s the rub?

I’ve never been late on any bill in my 59 years. For the last 20 years, I have owned (free & clear) the homes that I have lived in so I am not exactly what you would call an advocate for deadbeats……………but, this is a pure & simple business deal and it’s incumbent on the bank to know the value and risks associated with properties where they are the mortgage holder.

[Ex-SD]

Morality has nothing to do with it.
Emotion should have nothing to do with it.
A contract is a contract.
The lender’s lawyers writes the contracts. The buyer must sign the lender’s contract or walk away from the deal. If the lender is in total control of the language in the contract and the buyer quits paying, the bank gets the property back which is exactly what their lawyer’s wrote in the contract.
Where’s the rub?

I’ve never been late on any bill in my 59 years. For the last 20 years, I have owned (free & clear) the homes that I have lived in so I am not exactly what you would call an advocate for deadbeats……………but, this is a pure & simple business deal and it’s incumbent on the bank to know the value and risks associated with properties where they are the mortgage holder.

[Ex-SD]

Morality has nothing to do with it.
Emotion should have nothing to do with it.
A contract is a contract.
The lender’s lawyers writes the contracts. The buyer must sign the lender’s contract or walk away from the deal. If the lender is in total control of the language in the contract and the buyer quits paying, the bank gets the property back which is exactly what their lawyer’s wrote in the contract.
Where’s the rub?

I’ve never been late on any bill in my 59 years. For the last 20 years, I have owned (free & clear) the homes that I have lived in so I am not exactly what you would call an advocate for deadbeats……………but, this is a pure & simple business deal and it’s incumbent on the bank to know the value and risks associated with properties where they are the mortgage holder.

[Ex-SD]

Morality has nothing to do with it.
Emotion should have nothing to do with it.
A contract is a contract.
The lender’s lawyers writes the contracts. The buyer must sign the lender’s contract or walk away from the deal. If the lender is in total control of the language in the contract and the buyer quits paying, the bank gets the property back which is exactly what their lawyer’s wrote in the contract.
Where’s the rub?

I’ve never been late on any bill in my 59 years. For the last 20 years, I have owned (free & clear) the homes that I have lived in so I am not exactly what you would call an advocate for deadbeats……………but, this is a pure & simple business deal and it’s incumbent on the bank to know the value and risks associated with properties where they are the mortgage holder.

[Ex-SD]

Morality has nothing to do with it.
Emotion should have nothing to do with it.
A contract is a contract.
The lender’s lawyers writes the contracts. The buyer must sign the lender’s contract or walk away from the deal. If the lender is in total control of the language in the contract and the buyer quits paying, the bank gets the property back which is exactly what their lawyer’s wrote in the contract.
Where’s the rub?

I’ve never been late on any bill in my 59 years. For the last 20 years, I have owned (free & clear) the homes that I have lived in so I am not exactly what you would call an advocate for deadbeats……………but, this is a pure & simple business deal and it’s incumbent on the bank to know the value and risks associated with properties where they are the mortgage holder.

[Ex-SD]

sdrealtor posted: “1996 was the bottom of the last cycle when prices over corrected. Even if prices overcorrect again they would be about double the 1996 prices based upon simple inflation.”

I don’t agree with your logic since that didn’t happen in the majority of the rest of the country that didn’t experience crazy bubble prices. Prices are still going to have to meet median income or you won’t have buyers. Median family income in SD is around $69k. Under your theory, it won’t compute. I think that prices will drop in most areas to where they were in 1998……………but I don’t have a crystal ball either.
Only time will tell which of us is correct. One thing is for sure: Prices are dropping and they’re going to get a lot lower than where they are today.

Re. sandiego and his dillema: If he makes a business decision vs an emotional decision, he will probably quit making his payments and wait for the lender to kick him out. He can pocket 7 – 9 payments which he can use to rent in the same building for far less than he’s probably paying to buy a depreciating asset. I have thought for some time that as this situation got worse, that many, otherwise responsible homeowners who actually put real money into their homes would get to the point where sandiego is today and throw the keys back to the lender.

[Ex-SD]

sdrealtor posted: “1996 was the bottom of the last cycle when prices over corrected. Even if prices overcorrect again they would be about double the 1996 prices based upon simple inflation.”

I don’t agree with your logic since that didn’t happen in the majority of the rest of the country that didn’t experience crazy bubble prices. Prices are still going to have to meet median income or you won’t have buyers. Median family income in SD is around $69k. Under your theory, it won’t compute. I think that prices will drop in most areas to where they were in 1998……………but I don’t have a crystal ball either.
Only time will tell which of us is correct. One thing is for sure: Prices are dropping and they’re going to get a lot lower than where they are today.

Re. sandiego and his dillema: If he makes a business decision vs an emotional decision, he will probably quit making his payments and wait for the lender to kick him out. He can pocket 7 – 9 payments which he can use to rent in the same building for far less than he’s probably paying to buy a depreciating asset. I have thought for some time that as this situation got worse, that many, otherwise responsible homeowners who actually put real money into their homes would get to the point where sandiego is today and throw the keys back to the lender.

[Ex-SD]

sdrealtor posted: “1996 was the bottom of the last cycle when prices over corrected. Even if prices overcorrect again they would be about double the 1996 prices based upon simple inflation.”

I don’t agree with your logic since that didn’t happen in the majority of the rest of the country that didn’t experience crazy bubble prices. Prices are still going to have to meet median income or you won’t have buyers. Median family income in SD is around $69k. Under your theory, it won’t compute. I think that prices will drop in most areas to where they were in 1998……………but I don’t have a crystal ball either.
Only time will tell which of us is correct. One thing is for sure: Prices are dropping and they’re going to get a lot lower than where they are today.

Re. sandiego and his dillema: If he makes a business decision vs an emotional decision, he will probably quit making his payments and wait for the lender to kick him out. He can pocket 7 – 9 payments which he can use to rent in the same building for far less than he’s probably paying to buy a depreciating asset. I have thought for some time that as this situation got worse, that many, otherwise responsible homeowners who actually put real money into their homes would get to the point where sandiego is today and throw the keys back to the lender.

[Ex-SD]

sdrealtor posted: “1996 was the bottom of the last cycle when prices over corrected. Even if prices overcorrect again they would be about double the 1996 prices based upon simple inflation.”

I don’t agree with your logic since that didn’t happen in the majority of the rest of the country that didn’t experience crazy bubble prices. Prices are still going to have to meet median income or you won’t have buyers. Median family income in SD is around $69k. Under your theory, it won’t compute. I think that prices will drop in most areas to where they were in 1998……………but I don’t have a crystal ball either.
Only time will tell which of us is correct. One thing is for sure: Prices are dropping and they’re going to get a lot lower than where they are today.

Re. sandiego and his dillema: If he makes a business decision vs an emotional decision, he will probably quit making his payments and wait for the lender to kick him out. He can pocket 7 – 9 payments which he can use to rent in the same building for far less than he’s probably paying to buy a depreciating asset. I have thought for some time that as this situation got worse, that many, otherwise responsible homeowners who actually put real money into their homes would get to the point where sandiego is today and throw the keys back to the lender.

[Ex-SD]

sdrealtor posted: “1996 was the bottom of the last cycle when prices over corrected. Even if prices overcorrect again they would be about double the 1996 prices based upon simple inflation.”

I don’t agree with your logic since that didn’t happen in the majority of the rest of the country that didn’t experience crazy bubble prices. Prices are still going to have to meet median income or you won’t have buyers. Median family income in SD is around $69k. Under your theory, it won’t compute. I think that prices will drop in most areas to where they were in 1998……………but I don’t have a crystal ball either.
Only time will tell which of us is correct. One thing is for sure: Prices are dropping and they’re going to get a lot lower than where they are today.

Re. sandiego and his dillema: If he makes a business decision vs an emotional decision, he will probably quit making his payments and wait for the lender to kick him out. He can pocket 7 – 9 payments which he can use to rent in the same building for far less than he’s probably paying to buy a depreciating asset. I have thought for some time that as this situation got worse, that many, otherwise responsible homeowners who actually put real money into their homes would get to the point where sandiego is today and throw the keys back to the lender.

[Ex-SD]

Jumby, I read an article last month on either MSNBC, CNN or Fox (can’t remember which one) where the author said that there were many homes that had been discounted 50% from the prices that they were selling at in 2005 in Ft. Lauderdale, Miami, Tampa and Fort Myers. I also saw the YouTube videos several months ago where new condos were auctioned and sold for 50% discounts in Miami and new townhomes in Fort Meyers. I also saw a television program that followed the stories of three sellers (one was in Fort Lauderdale) and all the things they had done to sell their home………………but with no luck. They had reduced their selling price several times and had reduced it over 25% at the time the program aired……………..still no sale.

I didn’t mean to imply that every piece of property in these markets had already dropped 50% in value but when you have the examples that I listed, that is enough smoke to believe that a fire is in the vicinity.
Yes, I am a Uber-Bear. Enough so, that my wife and I sold our home in Leucadia (with a great ocean view) in 2005 and moved out of CA because I was convinced that this would eventually happen. We had lived in San Diego for over 30 years. I knew it would be bad but I think it’s going to be much worse than I envisioned back in 2005.
I hope your plans work out to return to San Diego. It’s a great place to live.

[Ex-SD]

Jumby, I read an article last month on either MSNBC, CNN or Fox (can’t remember which one) where the author said that there were many homes that had been discounted 50% from the prices that they were selling at in 2005 in Ft. Lauderdale, Miami, Tampa and Fort Myers. I also saw the YouTube videos several months ago where new condos were auctioned and sold for 50% discounts in Miami and new townhomes in Fort Meyers. I also saw a television program that followed the stories of three sellers (one was in Fort Lauderdale) and all the things they had done to sell their home………………but with no luck. They had reduced their selling price several times and had reduced it over 25% at the time the program aired……………..still no sale.

I didn’t mean to imply that every piece of property in these markets had already dropped 50% in value but when you have the examples that I listed, that is enough smoke to believe that a fire is in the vicinity.
Yes, I am a Uber-Bear. Enough so, that my wife and I sold our home in Leucadia (with a great ocean view) in 2005 and moved out of CA because I was convinced that this would eventually happen. We had lived in San Diego for over 30 years. I knew it would be bad but I think it’s going to be much worse than I envisioned back in 2005.
I hope your plans work out to return to San Diego. It’s a great place to live.

[Ex-SD]

Jumby, I read an article last month on either MSNBC, CNN or Fox (can’t remember which one) where the author said that there were many homes that had been discounted 50% from the prices that they were selling at in 2005 in Ft. Lauderdale, Miami, Tampa and Fort Myers. I also saw the YouTube videos several months ago where new condos were auctioned and sold for 50% discounts in Miami and new townhomes in Fort Meyers. I also saw a television program that followed the stories of three sellers (one was in Fort Lauderdale) and all the things they had done to sell their home………………but with no luck. They had reduced their selling price several times and had reduced it over 25% at the time the program aired……………..still no sale.

I didn’t mean to imply that every piece of property in these markets had already dropped 50% in value but when you have the examples that I listed, that is enough smoke to believe that a fire is in the vicinity.
Yes, I am a Uber-Bear. Enough so, that my wife and I sold our home in Leucadia (with a great ocean view) in 2005 and moved out of CA because I was convinced that this would eventually happen. We had lived in San Diego for over 30 years. I knew it would be bad but I think it’s going to be much worse than I envisioned back in 2005.
I hope your plans work out to return to San Diego. It’s a great place to live.

[Author]

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