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HLS
ParticipantJP, stop paying attention to the “median” it’s a meaningless, misleading statistic.
People with median incomes may have no interest in living in a median priced neighborhood.
San Diego is currently in the top 10 of unaffordable cities, based on income and cost of housing ownership.You shouldn’t have a mortgage for more than 4x-5x your gross income, depending on your other debts.
When you know how to use cash and leverage, you will never be screwed by having money.
Lenders start with your credit score. They put you into a box whether you deserve to be there or not. One late minimum credit card payment (even $20 and an hones mistake) can whack your score 30 or 40 points. Doesn’t make you a bad person, but to FNMA you just became a bigger risk if you score falls below 680.
Realtor commissions are paid by the seller through the selling price. Nobody is getting 5.50% 100% loans today, except for one possible program which may not exist anymore.
You need that down payment, you also need additional financial reserves, and you better hope that you don’t lose your job.
Why does buying a house have to equate to getting ahead ?
It’s not in the Declaration of Independence that people are entitled to afford a house.
In Europe, for generations, people have rented. They have smaller apts/homes, but many have higher standards of living, including education, culture and travel/vacations, and they work less and enjoy life more. They never own a home.
America has been duped by marketing and Wall Street.
Many people have been weaned on propaganda from the govt and the media about what is the right thing to do throughout your life, except you do it with your money, if you have any. The American dream = owning a home ?
That’s MARKETING.Even homeless people need $5 for Starbucks now, the 50c coffee isn’t good enough anymore. We’ve become a sick society, based upon the greater fool theory.
Why don’t people buy Rolls Royces or fly first class ?
Usually because they can’t afford it; but when people couldn’t really afford to buy houses, they went ahead and bought them anyway, and now there is outrage because they are losing what they never should have bought in the first place, that they cannot afford, and the govt wants to save them ??We NEED a huge economic correction harder than the 1930’s depression to get the country back on track.
Maybe it will happen, maybe it won’t. Those that are prepared will survive just fine.
Thank the administration for the few good boom years of the decade, there is a price to pay for the excess, corruption and greed, and the average worker will carry afair part of this burden.
Be a happy renter instead of a miserable homeowner until you are ready and can afford what you are comfortable with.
You can borrow more money than is wise for a house as a % of your income. Just because you can get approved for 55%-60% of your gross income for your debts, doesn’t mean that you have to do it.
ParticipantJP,
Affordability is needed to bring the reality back.You need to understand markets and bubbles, regardless of the product involved. The bubble bursts, and people are in denial all the way down, basing their perception on the peak prices.
Houses were never really worth what they were selling for.
It was greed that kept many people from selling in 2004-05, they wanted more.It was 100% financing that fueled the mania, nothing more.
There are over 18,500 properties for sale in SD county this week, and over 50,000 in Riverside.
In December, about 1500 sold, about 8% of what is listed for sale in SD. There are thousands of other houses that people would gladly sell today, if only they could get the unrealistic price that they have in their mind.
It looks like January sales are 50% REO/lender owned, meaning that the public is being totally unrealistic about their asking prices.
As of today, most people are completely in fantasyland about the real value of their house today. If they HAD to sell it, it’s probably worth 25%-30% than they think, and will probably be worth less next year.
Nobody HAS TO buy a house, people want to buy.
Some people HAVE TO sell a house, and can only get what it is worth in today’s market.I’m in the mortgage business. I see the real messes that some people are in. I hear the horror stories.
Many people who want to buy today simply do not qualify.
If conforming loan limits do get raised, everybody already assumes that pricing will be the same as today’s conforming amount. I don’t know if that is true.
For people who do qualify, they may just get cheaper loans. People who don’t qualify, still won’t qualify for a $600K loan.
The govt is willing to try ANYTHING to keep the house of cards from collapsing. Their concern is the economy, not the homeowner.
When a lender says that they want to help the “homeowner” stay in their house, it’s a lie. They really want to keep from having another foreclosure that they will lose money on.
If they were truly trying to help the public, they would make people realize that the best thing for many people is to walk away, after 6 mos + of no payments, and saving up some money.
Instead of being in debt for $600K on a home worth $450K today, they can go rent for much less than their ownership payment, and probably buy a similar property back in several years for $300K.
That won’t be good for the economy.
ParticipantJP,
Affordability is needed to bring the reality back.You need to understand markets and bubbles, regardless of the product involved. The bubble bursts, and people are in denial all the way down, basing their perception on the peak prices.
Houses were never really worth what they were selling for.
It was greed that kept many people from selling in 2004-05, they wanted more.It was 100% financing that fueled the mania, nothing more.
There are over 18,500 properties for sale in SD county this week, and over 50,000 in Riverside.
In December, about 1500 sold, about 8% of what is listed for sale in SD. There are thousands of other houses that people would gladly sell today, if only they could get the unrealistic price that they have in their mind.
It looks like January sales are 50% REO/lender owned, meaning that the public is being totally unrealistic about their asking prices.
As of today, most people are completely in fantasyland about the real value of their house today. If they HAD to sell it, it’s probably worth 25%-30% than they think, and will probably be worth less next year.
Nobody HAS TO buy a house, people want to buy.
Some people HAVE TO sell a house, and can only get what it is worth in today’s market.I’m in the mortgage business. I see the real messes that some people are in. I hear the horror stories.
Many people who want to buy today simply do not qualify.
If conforming loan limits do get raised, everybody already assumes that pricing will be the same as today’s conforming amount. I don’t know if that is true.
For people who do qualify, they may just get cheaper loans. People who don’t qualify, still won’t qualify for a $600K loan.
The govt is willing to try ANYTHING to keep the house of cards from collapsing. Their concern is the economy, not the homeowner.
When a lender says that they want to help the “homeowner” stay in their house, it’s a lie. They really want to keep from having another foreclosure that they will lose money on.
If they were truly trying to help the public, they would make people realize that the best thing for many people is to walk away, after 6 mos + of no payments, and saving up some money.
Instead of being in debt for $600K on a home worth $450K today, they can go rent for much less than their ownership payment, and probably buy a similar property back in several years for $300K.
That won’t be good for the economy.
ParticipantJP,
Affordability is needed to bring the reality back.You need to understand markets and bubbles, regardless of the product involved. The bubble bursts, and people are in denial all the way down, basing their perception on the peak prices.
Houses were never really worth what they were selling for.
It was greed that kept many people from selling in 2004-05, they wanted more.It was 100% financing that fueled the mania, nothing more.
There are over 18,500 properties for sale in SD county this week, and over 50,000 in Riverside.
In December, about 1500 sold, about 8% of what is listed for sale in SD. There are thousands of other houses that people would gladly sell today, if only they could get the unrealistic price that they have in their mind.
It looks like January sales are 50% REO/lender owned, meaning that the public is being totally unrealistic about their asking prices.
As of today, most people are completely in fantasyland about the real value of their house today. If they HAD to sell it, it’s probably worth 25%-30% than they think, and will probably be worth less next year.
Nobody HAS TO buy a house, people want to buy.
Some people HAVE TO sell a house, and can only get what it is worth in today’s market.I’m in the mortgage business. I see the real messes that some people are in. I hear the horror stories.
Many people who want to buy today simply do not qualify.
If conforming loan limits do get raised, everybody already assumes that pricing will be the same as today’s conforming amount. I don’t know if that is true.
For people who do qualify, they may just get cheaper loans. People who don’t qualify, still won’t qualify for a $600K loan.
The govt is willing to try ANYTHING to keep the house of cards from collapsing. Their concern is the economy, not the homeowner.
When a lender says that they want to help the “homeowner” stay in their house, it’s a lie. They really want to keep from having another foreclosure that they will lose money on.
If they were truly trying to help the public, they would make people realize that the best thing for many people is to walk away, after 6 mos + of no payments, and saving up some money.
Instead of being in debt for $600K on a home worth $450K today, they can go rent for much less than their ownership payment, and probably buy a similar property back in several years for $300K.
That won’t be good for the economy.
ParticipantJP,
Affordability is needed to bring the reality back.You need to understand markets and bubbles, regardless of the product involved. The bubble bursts, and people are in denial all the way down, basing their perception on the peak prices.
Houses were never really worth what they were selling for.
It was greed that kept many people from selling in 2004-05, they wanted more.It was 100% financing that fueled the mania, nothing more.
There are over 18,500 properties for sale in SD county this week, and over 50,000 in Riverside.
In December, about 1500 sold, about 8% of what is listed for sale in SD. There are thousands of other houses that people would gladly sell today, if only they could get the unrealistic price that they have in their mind.
It looks like January sales are 50% REO/lender owned, meaning that the public is being totally unrealistic about their asking prices.
As of today, most people are completely in fantasyland about the real value of their house today. If they HAD to sell it, it’s probably worth 25%-30% than they think, and will probably be worth less next year.
Nobody HAS TO buy a house, people want to buy.
Some people HAVE TO sell a house, and can only get what it is worth in today’s market.I’m in the mortgage business. I see the real messes that some people are in. I hear the horror stories.
Many people who want to buy today simply do not qualify.
If conforming loan limits do get raised, everybody already assumes that pricing will be the same as today’s conforming amount. I don’t know if that is true.
For people who do qualify, they may just get cheaper loans. People who don’t qualify, still won’t qualify for a $600K loan.
The govt is willing to try ANYTHING to keep the house of cards from collapsing. Their concern is the economy, not the homeowner.
When a lender says that they want to help the “homeowner” stay in their house, it’s a lie. They really want to keep from having another foreclosure that they will lose money on.
If they were truly trying to help the public, they would make people realize that the best thing for many people is to walk away, after 6 mos + of no payments, and saving up some money.
Instead of being in debt for $600K on a home worth $450K today, they can go rent for much less than their ownership payment, and probably buy a similar property back in several years for $300K.
That won’t be good for the economy.
ParticipantJP,
Affordability is needed to bring the reality back.You need to understand markets and bubbles, regardless of the product involved. The bubble bursts, and people are in denial all the way down, basing their perception on the peak prices.
Houses were never really worth what they were selling for.
It was greed that kept many people from selling in 2004-05, they wanted more.It was 100% financing that fueled the mania, nothing more.
There are over 18,500 properties for sale in SD county this week, and over 50,000 in Riverside.
In December, about 1500 sold, about 8% of what is listed for sale in SD. There are thousands of other houses that people would gladly sell today, if only they could get the unrealistic price that they have in their mind.
It looks like January sales are 50% REO/lender owned, meaning that the public is being totally unrealistic about their asking prices.
As of today, most people are completely in fantasyland about the real value of their house today. If they HAD to sell it, it’s probably worth 25%-30% than they think, and will probably be worth less next year.
Nobody HAS TO buy a house, people want to buy.
Some people HAVE TO sell a house, and can only get what it is worth in today’s market.I’m in the mortgage business. I see the real messes that some people are in. I hear the horror stories.
Many people who want to buy today simply do not qualify.
If conforming loan limits do get raised, everybody already assumes that pricing will be the same as today’s conforming amount. I don’t know if that is true.
For people who do qualify, they may just get cheaper loans. People who don’t qualify, still won’t qualify for a $600K loan.
The govt is willing to try ANYTHING to keep the house of cards from collapsing. Their concern is the economy, not the homeowner.
When a lender says that they want to help the “homeowner” stay in their house, it’s a lie. They really want to keep from having another foreclosure that they will lose money on.
If they were truly trying to help the public, they would make people realize that the best thing for many people is to walk away, after 6 mos + of no payments, and saving up some money.
Instead of being in debt for $600K on a home worth $450K today, they can go rent for much less than their ownership payment, and probably buy a similar property back in several years for $300K.
That won’t be good for the economy.
ParticipantYes Borat,,,
Agreed, if the job losses accelerate it’s a different ballgame.
But don’t forget that the federales will get aggressive, and do “whatever they have to do” to prevent the end of the world coming.As they say in the ‘stan,, then we will have sexy time in U.S. of A
ParticipantYes Borat,,,
Agreed, if the job losses accelerate it’s a different ballgame.
But don’t forget that the federales will get aggressive, and do “whatever they have to do” to prevent the end of the world coming.As they say in the ‘stan,, then we will have sexy time in U.S. of A
ParticipantYes Borat,,,
Agreed, if the job losses accelerate it’s a different ballgame.
But don’t forget that the federales will get aggressive, and do “whatever they have to do” to prevent the end of the world coming.As they say in the ‘stan,, then we will have sexy time in U.S. of A
ParticipantYes Borat,,,
Agreed, if the job losses accelerate it’s a different ballgame.
But don’t forget that the federales will get aggressive, and do “whatever they have to do” to prevent the end of the world coming.As they say in the ‘stan,, then we will have sexy time in U.S. of A
ParticipantYes Borat,,,
Agreed, if the job losses accelerate it’s a different ballgame.
But don’t forget that the federales will get aggressive, and do “whatever they have to do” to prevent the end of the world coming.As they say in the ‘stan,, then we will have sexy time in U.S. of A
February 2, 2008 at 11:48 AM in reply to: 60% off at temecula auction and conclusive evidence that I’m an idiot #147154ParticipantAllan,
Along the road of denial, hope turns to desperation and then reality…
F’brook isn’t immune from what is happening and what will continue to happen. Why would you think that it will be any different here than in general ?
The older residents ANYWHERE are in the same camp.
Anybody who bought their house prior to 2002 and never refi’d shouldn’t have a problem. It’s probably 75% of the general population that doesn’t have a problem with their mortgage payment or home value dropping.The newer arrivals ANYWHERE are in the same boat.
Many are up a creek without a paddle. (i.e. with an ARM loan and zero chance of refinancing)
Some are one paycheck away from being able to buy groceries.I don’t care if the value of my house drops to its 2000 price, I’m not selling or moving until I’m ready, regardless of market swings.
Bonsall is higher net worth in general, and in any area like that the people who have neg am loans to fund their mansion will be paying the piper one of these days.
The psychological wealth theory has kicked in. Many people are starting to see the facts. The 60 Minutes piece last Sunday was probably the first dose of reality for millions of Americans.
February 2, 2008 at 11:48 AM in reply to: 60% off at temecula auction and conclusive evidence that I’m an idiot #147397ParticipantAllan,
Along the road of denial, hope turns to desperation and then reality…
F’brook isn’t immune from what is happening and what will continue to happen. Why would you think that it will be any different here than in general ?
The older residents ANYWHERE are in the same camp.
Anybody who bought their house prior to 2002 and never refi’d shouldn’t have a problem. It’s probably 75% of the general population that doesn’t have a problem with their mortgage payment or home value dropping.The newer arrivals ANYWHERE are in the same boat.
Many are up a creek without a paddle. (i.e. with an ARM loan and zero chance of refinancing)
Some are one paycheck away from being able to buy groceries.I don’t care if the value of my house drops to its 2000 price, I’m not selling or moving until I’m ready, regardless of market swings.
Bonsall is higher net worth in general, and in any area like that the people who have neg am loans to fund their mansion will be paying the piper one of these days.
The psychological wealth theory has kicked in. Many people are starting to see the facts. The 60 Minutes piece last Sunday was probably the first dose of reality for millions of Americans.
February 2, 2008 at 11:48 AM in reply to: 60% off at temecula auction and conclusive evidence that I’m an idiot #147423ParticipantAllan,
Along the road of denial, hope turns to desperation and then reality…
F’brook isn’t immune from what is happening and what will continue to happen. Why would you think that it will be any different here than in general ?
The older residents ANYWHERE are in the same camp.
Anybody who bought their house prior to 2002 and never refi’d shouldn’t have a problem. It’s probably 75% of the general population that doesn’t have a problem with their mortgage payment or home value dropping.The newer arrivals ANYWHERE are in the same boat.
Many are up a creek without a paddle. (i.e. with an ARM loan and zero chance of refinancing)
Some are one paycheck away from being able to buy groceries.I don’t care if the value of my house drops to its 2000 price, I’m not selling or moving until I’m ready, regardless of market swings.
Bonsall is higher net worth in general, and in any area like that the people who have neg am loans to fund their mansion will be paying the piper one of these days.
The psychological wealth theory has kicked in. Many people are starting to see the facts. The 60 Minutes piece last Sunday was probably the first dose of reality for millions of Americans.
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