[Fearful]

[quote=sdrealtor]4plex,
Thats a good one for the low end of the market but for the middle and high end its irrelevant. I know that I am well past the idea of a self move as I suspect most Piggs would be as well.
[/quote]
Anybody feel up for doing that same quote from a mainstream moving company, e.g. Allied?

[Fearful]

[quote=sdrealtor]4plex,
Thats a good one for the low end of the market but for the middle and high end its irrelevant. I know that I am well past the idea of a self move as I suspect most Piggs would be as well.
[/quote]
Anybody feel up for doing that same quote from a mainstream moving company, e.g. Allied?

[Fearful]

[quote=sdrealtor]4plex,
Thats a good one for the low end of the market but for the middle and high end its irrelevant. I know that I am well past the idea of a self move as I suspect most Piggs would be as well.
[/quote]
Anybody feel up for doing that same quote from a mainstream moving company, e.g. Allied?

[Fearful]

[quote=FormerSanDiegan]The option ARMs are toast already because of negative amortizaiton. The Alt-A interest only or “traditional” ARMs are not nearly as deadly.
[/quote]
There are two separate factors. One is that these are ARMs and can reset to prohibitive interest rates. The other is that these are Alt-A, meaning that their overall affordability, even at the initial interest rate, is in doubt. From Wikipedia:

Characteristics of Alt-A

Within the U.S. mortgage industry, different mortgage products are generally defined by how they differ from the types of “conforming” or “agency” mortgages, ones guaranteed by the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac.

There are numerous factors that might cause a mortgage not to qualify under the GSEs’ lending guidelines even though the borrower’s creditworthiness is generally strong. A few of the more important factors are:

* Reduced borrower income and asset documentation (for example, “stated income”, “stated assets”, “no income verification”)
* Borrower debt-to-income ratios above what Fannie or Freddie will allow for the borrower credit, assets and type of property being financed
* Credit history with too many problems to qualify for an “agency” loan, but not so many as to require a subprime loan (for example, low scores or serious delinquencies, but no recent charge-offs or bankruptcy)
* Loan to value ratios (percentage of the property price being borrowed) above agency limits for the property, occupancy or borrower characteristics involved

[end]

Simply put, these are mortgages that, even initially, were not affordable enough for the GSEs to buy.

Lower reset interest rates help the Alt-A problem, but they absolutely do not make it go away. It might not be a tsunami, but not a ripple either. Unfortunately, the underlying data on the mortgages is poor, so no one knows for sure how unaffordable the mortgages are, and one is forced to go back to more broad metrics such as house price to income ratios.

[Fearful]

[quote=FormerSanDiegan]The option ARMs are toast already because of negative amortizaiton. The Alt-A interest only or “traditional” ARMs are not nearly as deadly.
[/quote]
There are two separate factors. One is that these are ARMs and can reset to prohibitive interest rates. The other is that these are Alt-A, meaning that their overall affordability, even at the initial interest rate, is in doubt. From Wikipedia:

Characteristics of Alt-A

Within the U.S. mortgage industry, different mortgage products are generally defined by how they differ from the types of “conforming” or “agency” mortgages, ones guaranteed by the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac.

There are numerous factors that might cause a mortgage not to qualify under the GSEs’ lending guidelines even though the borrower’s creditworthiness is generally strong. A few of the more important factors are:

* Reduced borrower income and asset documentation (for example, “stated income”, “stated assets”, “no income verification”)
* Borrower debt-to-income ratios above what Fannie or Freddie will allow for the borrower credit, assets and type of property being financed
* Credit history with too many problems to qualify for an “agency” loan, but not so many as to require a subprime loan (for example, low scores or serious delinquencies, but no recent charge-offs or bankruptcy)
* Loan to value ratios (percentage of the property price being borrowed) above agency limits for the property, occupancy or borrower characteristics involved

[end]

Simply put, these are mortgages that, even initially, were not affordable enough for the GSEs to buy.

Lower reset interest rates help the Alt-A problem, but they absolutely do not make it go away. It might not be a tsunami, but not a ripple either. Unfortunately, the underlying data on the mortgages is poor, so no one knows for sure how unaffordable the mortgages are, and one is forced to go back to more broad metrics such as house price to income ratios.

[Fearful]

[quote=FormerSanDiegan]The option ARMs are toast already because of negative amortizaiton. The Alt-A interest only or “traditional” ARMs are not nearly as deadly.
[/quote]
There are two separate factors. One is that these are ARMs and can reset to prohibitive interest rates. The other is that these are Alt-A, meaning that their overall affordability, even at the initial interest rate, is in doubt. From Wikipedia:

Characteristics of Alt-A

Within the U.S. mortgage industry, different mortgage products are generally defined by how they differ from the types of “conforming” or “agency” mortgages, ones guaranteed by the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac.

There are numerous factors that might cause a mortgage not to qualify under the GSEs’ lending guidelines even though the borrower’s creditworthiness is generally strong. A few of the more important factors are:

* Reduced borrower income and asset documentation (for example, “stated income”, “stated assets”, “no income verification”)
* Borrower debt-to-income ratios above what Fannie or Freddie will allow for the borrower credit, assets and type of property being financed
* Credit history with too many problems to qualify for an “agency” loan, but not so many as to require a subprime loan (for example, low scores or serious delinquencies, but no recent charge-offs or bankruptcy)
* Loan to value ratios (percentage of the property price being borrowed) above agency limits for the property, occupancy or borrower characteristics involved

[end]

Simply put, these are mortgages that, even initially, were not affordable enough for the GSEs to buy.

Lower reset interest rates help the Alt-A problem, but they absolutely do not make it go away. It might not be a tsunami, but not a ripple either. Unfortunately, the underlying data on the mortgages is poor, so no one knows for sure how unaffordable the mortgages are, and one is forced to go back to more broad metrics such as house price to income ratios.

[Fearful]

[quote=FormerSanDiegan]The option ARMs are toast already because of negative amortizaiton. The Alt-A interest only or “traditional” ARMs are not nearly as deadly.
[/quote]
There are two separate factors. One is that these are ARMs and can reset to prohibitive interest rates. The other is that these are Alt-A, meaning that their overall affordability, even at the initial interest rate, is in doubt. From Wikipedia:

Characteristics of Alt-A

Within the U.S. mortgage industry, different mortgage products are generally defined by how they differ from the types of “conforming” or “agency” mortgages, ones guaranteed by the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac.

There are numerous factors that might cause a mortgage not to qualify under the GSEs’ lending guidelines even though the borrower’s creditworthiness is generally strong. A few of the more important factors are:

* Reduced borrower income and asset documentation (for example, “stated income”, “stated assets”, “no income verification”)
* Borrower debt-to-income ratios above what Fannie or Freddie will allow for the borrower credit, assets and type of property being financed
* Credit history with too many problems to qualify for an “agency” loan, but not so many as to require a subprime loan (for example, low scores or serious delinquencies, but no recent charge-offs or bankruptcy)
* Loan to value ratios (percentage of the property price being borrowed) above agency limits for the property, occupancy or borrower characteristics involved

[end]

Simply put, these are mortgages that, even initially, were not affordable enough for the GSEs to buy.

Lower reset interest rates help the Alt-A problem, but they absolutely do not make it go away. It might not be a tsunami, but not a ripple either. Unfortunately, the underlying data on the mortgages is poor, so no one knows for sure how unaffordable the mortgages are, and one is forced to go back to more broad metrics such as house price to income ratios.

[Fearful]

[quote=FormerSanDiegan]The option ARMs are toast already because of negative amortizaiton. The Alt-A interest only or “traditional” ARMs are not nearly as deadly.
[/quote]
There are two separate factors. One is that these are ARMs and can reset to prohibitive interest rates. The other is that these are Alt-A, meaning that their overall affordability, even at the initial interest rate, is in doubt. From Wikipedia:

Characteristics of Alt-A

Within the U.S. mortgage industry, different mortgage products are generally defined by how they differ from the types of “conforming” or “agency” mortgages, ones guaranteed by the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac.

There are numerous factors that might cause a mortgage not to qualify under the GSEs’ lending guidelines even though the borrower’s creditworthiness is generally strong. A few of the more important factors are:

* Reduced borrower income and asset documentation (for example, “stated income”, “stated assets”, “no income verification”)
* Borrower debt-to-income ratios above what Fannie or Freddie will allow for the borrower credit, assets and type of property being financed
* Credit history with too many problems to qualify for an “agency” loan, but not so many as to require a subprime loan (for example, low scores or serious delinquencies, but no recent charge-offs or bankruptcy)
* Loan to value ratios (percentage of the property price being borrowed) above agency limits for the property, occupancy or borrower characteristics involved

[end]

Simply put, these are mortgages that, even initially, were not affordable enough for the GSEs to buy.

Lower reset interest rates help the Alt-A problem, but they absolutely do not make it go away. It might not be a tsunami, but not a ripple either. Unfortunately, the underlying data on the mortgages is poor, so no one knows for sure how unaffordable the mortgages are, and one is forced to go back to more broad metrics such as house price to income ratios.

[Fearful]

[quote=HLS]
It’s just as foolish to look at housing inventory that is currently listed and conclude that those are the only houses for sale.

Liars, damn liars and statistics.

There are probably 5x the number of listings that would be up for sale IF prices were 10%-20% higher,
people would be thrilled to sell for just a bit more.

Many people would love to sell their house today but know that it is impossible because of what they owe, and they don’t want to “lose money” so they are hanging on until the market improves.
[/quote]
I am shopping for a house. Having great difficulty because of narrow criteria. You comment made me wonder whether I might simply go door to door in neighborhoods I am interested in. “Wanna sell your house?”

Is there opportunity in becoming a realtor and getting listings by coaching people on the short sale process?

[Fearful]

[quote=HLS]
It’s just as foolish to look at housing inventory that is currently listed and conclude that those are the only houses for sale.

Liars, damn liars and statistics.

There are probably 5x the number of listings that would be up for sale IF prices were 10%-20% higher,
people would be thrilled to sell for just a bit more.

Many people would love to sell their house today but know that it is impossible because of what they owe, and they don’t want to “lose money” so they are hanging on until the market improves.
[/quote]
I am shopping for a house. Having great difficulty because of narrow criteria. You comment made me wonder whether I might simply go door to door in neighborhoods I am interested in. “Wanna sell your house?”

Is there opportunity in becoming a realtor and getting listings by coaching people on the short sale process?

[Fearful]

[quote=HLS]
It’s just as foolish to look at housing inventory that is currently listed and conclude that those are the only houses for sale.

Liars, damn liars and statistics.

There are probably 5x the number of listings that would be up for sale IF prices were 10%-20% higher,
people would be thrilled to sell for just a bit more.

Many people would love to sell their house today but know that it is impossible because of what they owe, and they don’t want to “lose money” so they are hanging on until the market improves.
[/quote]
I am shopping for a house. Having great difficulty because of narrow criteria. You comment made me wonder whether I might simply go door to door in neighborhoods I am interested in. “Wanna sell your house?”

Is there opportunity in becoming a realtor and getting listings by coaching people on the short sale process?

[Fearful]

[quote=HLS]
It’s just as foolish to look at housing inventory that is currently listed and conclude that those are the only houses for sale.

Liars, damn liars and statistics.

There are probably 5x the number of listings that would be up for sale IF prices were 10%-20% higher,
people would be thrilled to sell for just a bit more.

Many people would love to sell their house today but know that it is impossible because of what they owe, and they don’t want to “lose money” so they are hanging on until the market improves.
[/quote]
I am shopping for a house. Having great difficulty because of narrow criteria. You comment made me wonder whether I might simply go door to door in neighborhoods I am interested in. “Wanna sell your house?”

Is there opportunity in becoming a realtor and getting listings by coaching people on the short sale process?

[Fearful]

[quote=HLS]
It’s just as foolish to look at housing inventory that is currently listed and conclude that those are the only houses for sale.

Liars, damn liars and statistics.

There are probably 5x the number of listings that would be up for sale IF prices were 10%-20% higher,
people would be thrilled to sell for just a bit more.

Many people would love to sell their house today but know that it is impossible because of what they owe, and they don’t want to “lose money” so they are hanging on until the market improves.
[/quote]
I am shopping for a house. Having great difficulty because of narrow criteria. You comment made me wonder whether I might simply go door to door in neighborhoods I am interested in. “Wanna sell your house?”

Is there opportunity in becoming a realtor and getting listings by coaching people on the short sale process?

[Fearful]

[quote=temeculaguy]
I also read the financials daily and despite the horror stories, I was battling for the rent positive listings, buyers with cash are lined up, even in temecula, yet I never saw dead old men that hated yardwork, I wished I had but instead the cash rich folks were there. I waited and hoped they would stop coming but they never did, still haven’t.

You have until 2010 (or 2011 in premium areas) to get your downpayment and credit score together, that’s my prediction, when renting becomes more expensive than buying, the clock starts ticking.[/quote]
The cash rich folks are like zombies, no? They just keep coming. This debt bubble created an enormous amount of wealth that will take quite a while to bleed off. This process will happen slowly because there are various levels of defensiveness people are assuming, with the most defensive lasting the longest. The final equilibrium point is affected by at least three major factors: Bailout and foreclosure moratorium possibilities, how the labor market affects rental demand, and how the supply of rental houses affects prices.

[Fearful]

[quote=temeculaguy]
I also read the financials daily and despite the horror stories, I was battling for the rent positive listings, buyers with cash are lined up, even in temecula, yet I never saw dead old men that hated yardwork, I wished I had but instead the cash rich folks were there. I waited and hoped they would stop coming but they never did, still haven’t.

You have until 2010 (or 2011 in premium areas) to get your downpayment and credit score together, that’s my prediction, when renting becomes more expensive than buying, the clock starts ticking.[/quote]
The cash rich folks are like zombies, no? They just keep coming. This debt bubble created an enormous amount of wealth that will take quite a while to bleed off. This process will happen slowly because there are various levels of defensiveness people are assuming, with the most defensive lasting the longest. The final equilibrium point is affected by at least three major factors: Bailout and foreclosure moratorium possibilities, how the labor market affects rental demand, and how the supply of rental houses affects prices.

[Author]

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