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February 2, 2008 at 11:48 AM in reply to: 60% off at temecula auction and conclusive evidence that I’m an idiot #147433February 2, 2008 at 11:48 AM in reply to: 60% off at temecula auction and conclusive evidence that I’m an idiot #147498
HLS
ParticipantAllan,
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.
ParticipantMost people will not qualify to buy another home with their current albatross on their credit report.
They can hardly deal with the debt that they already have.
If you have a current primary home, you need 25%-30% down to get a decent loan on your new “rental” property.
Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.
The 5 year aberration of lending standards is gone. It’s back to qualifying, which most people cannot do, but don’t seem to understand that.
ParticipantMost people will not qualify to buy another home with their current albatross on their credit report.
They can hardly deal with the debt that they already have.
If you have a current primary home, you need 25%-30% down to get a decent loan on your new “rental” property.
Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.
The 5 year aberration of lending standards is gone. It’s back to qualifying, which most people cannot do, but don’t seem to understand that.
ParticipantMost people will not qualify to buy another home with their current albatross on their credit report.
They can hardly deal with the debt that they already have.
If you have a current primary home, you need 25%-30% down to get a decent loan on your new “rental” property.
Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.
The 5 year aberration of lending standards is gone. It’s back to qualifying, which most people cannot do, but don’t seem to understand that.
ParticipantMost people will not qualify to buy another home with their current albatross on their credit report.
They can hardly deal with the debt that they already have.
If you have a current primary home, you need 25%-30% down to get a decent loan on your new “rental” property.
Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.
The 5 year aberration of lending standards is gone. It’s back to qualifying, which most people cannot do, but don’t seem to understand that.
ParticipantMost people will not qualify to buy another home with their current albatross on their credit report.
They can hardly deal with the debt that they already have.
If you have a current primary home, you need 25%-30% down to get a decent loan on your new “rental” property.
Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.
The 5 year aberration of lending standards is gone. It’s back to qualifying, which most people cannot do, but don’t seem to understand that.
ParticipantKEV,
I’m not sure how old you are or how long you’ve been around So Cal RE, but you are right on.The ONLY reason that the housing bubble inflated was that the govt “allowed” 100% stated income financing.
They allowed it because it was “good for the economy”
We would probably have gone into a depression after the dot com crash and 9-11 if rates hadn’t been loweredIt wasn’t Greenspan, and it wasn’t the low interest rates, it was NO DOWN payments to anyone with a pulse.
We are headed back to a situation where you need a 10% down payment, and low interest rates. When the prices get back down to reality the markets will stabilize.
The financing in 2002-2006 was stupid.
The house prices between 2002-2006 became stupid.You cannot have stupid market prices without stupid financing, and the stupid financing is gone FOREVER.
ParticipantKEV,
I’m not sure how old you are or how long you’ve been around So Cal RE, but you are right on.The ONLY reason that the housing bubble inflated was that the govt “allowed” 100% stated income financing.
They allowed it because it was “good for the economy”
We would probably have gone into a depression after the dot com crash and 9-11 if rates hadn’t been loweredIt wasn’t Greenspan, and it wasn’t the low interest rates, it was NO DOWN payments to anyone with a pulse.
We are headed back to a situation where you need a 10% down payment, and low interest rates. When the prices get back down to reality the markets will stabilize.
The financing in 2002-2006 was stupid.
The house prices between 2002-2006 became stupid.You cannot have stupid market prices without stupid financing, and the stupid financing is gone FOREVER.
ParticipantKEV,
I’m not sure how old you are or how long you’ve been around So Cal RE, but you are right on.The ONLY reason that the housing bubble inflated was that the govt “allowed” 100% stated income financing.
They allowed it because it was “good for the economy”
We would probably have gone into a depression after the dot com crash and 9-11 if rates hadn’t been loweredIt wasn’t Greenspan, and it wasn’t the low interest rates, it was NO DOWN payments to anyone with a pulse.
We are headed back to a situation where you need a 10% down payment, and low interest rates. When the prices get back down to reality the markets will stabilize.
The financing in 2002-2006 was stupid.
The house prices between 2002-2006 became stupid.You cannot have stupid market prices without stupid financing, and the stupid financing is gone FOREVER.
ParticipantKEV,
I’m not sure how old you are or how long you’ve been around So Cal RE, but you are right on.The ONLY reason that the housing bubble inflated was that the govt “allowed” 100% stated income financing.
They allowed it because it was “good for the economy”
We would probably have gone into a depression after the dot com crash and 9-11 if rates hadn’t been loweredIt wasn’t Greenspan, and it wasn’t the low interest rates, it was NO DOWN payments to anyone with a pulse.
We are headed back to a situation where you need a 10% down payment, and low interest rates. When the prices get back down to reality the markets will stabilize.
The financing in 2002-2006 was stupid.
The house prices between 2002-2006 became stupid.You cannot have stupid market prices without stupid financing, and the stupid financing is gone FOREVER.
ParticipantKEV,
I’m not sure how old you are or how long you’ve been around So Cal RE, but you are right on.The ONLY reason that the housing bubble inflated was that the govt “allowed” 100% stated income financing.
They allowed it because it was “good for the economy”
We would probably have gone into a depression after the dot com crash and 9-11 if rates hadn’t been loweredIt wasn’t Greenspan, and it wasn’t the low interest rates, it was NO DOWN payments to anyone with a pulse.
We are headed back to a situation where you need a 10% down payment, and low interest rates. When the prices get back down to reality the markets will stabilize.
The financing in 2002-2006 was stupid.
The house prices between 2002-2006 became stupid.You cannot have stupid market prices without stupid financing, and the stupid financing is gone FOREVER.
ParticipantYES, you were “lucky” along with millions of others, but most people don’t see it as luck, but now an entitlement to easy street.
Just because there have been 9 cycles, doesn’t guarantee that there will be a 10th.
The psychology of people thinking that it has to happen can actually make it happen, but if that same psychology turns, it won’t happen. If psychology turns in the stock market, watch out below.
Houses are cheaper than they were 2 and 3 years ago. Mortgage rates are lower than they were 2 and 3 years ago,
actual payments are less than they were 2 and 3 years ago, SO where are the buyers ??It’s a bargain now compared to 2 and 3 years ago, but the psychology has changed 180 degrees, and people who are smart are concerned, and those that aren’t concerned don’t understand what is happening.
Where are all the genius “investors” who went to seminars and bought books and tapes on RE investing ?
Since prices are cheaper now, the market should be booming, but it’s not.The party is over, but some people are just arriving, thinking that they aren’t too late and there is more fun to come.
The band has packed up, the liquor bottles are empty, there is trash all over the place. There’s a mess that needs to be cleaned up.
Anybody who buys a house today is helping to clean up that mess and saving somebody else the trouble.
ParticipantYES, you were “lucky” along with millions of others, but most people don’t see it as luck, but now an entitlement to easy street.
Just because there have been 9 cycles, doesn’t guarantee that there will be a 10th.
The psychology of people thinking that it has to happen can actually make it happen, but if that same psychology turns, it won’t happen. If psychology turns in the stock market, watch out below.
Houses are cheaper than they were 2 and 3 years ago. Mortgage rates are lower than they were 2 and 3 years ago,
actual payments are less than they were 2 and 3 years ago, SO where are the buyers ??It’s a bargain now compared to 2 and 3 years ago, but the psychology has changed 180 degrees, and people who are smart are concerned, and those that aren’t concerned don’t understand what is happening.
Where are all the genius “investors” who went to seminars and bought books and tapes on RE investing ?
Since prices are cheaper now, the market should be booming, but it’s not.The party is over, but some people are just arriving, thinking that they aren’t too late and there is more fun to come.
The band has packed up, the liquor bottles are empty, there is trash all over the place. There’s a mess that needs to be cleaned up.
Anybody who buys a house today is helping to clean up that mess and saving somebody else the trouble.
ParticipantYES, you were “lucky” along with millions of others, but most people don’t see it as luck, but now an entitlement to easy street.
Just because there have been 9 cycles, doesn’t guarantee that there will be a 10th.
The psychology of people thinking that it has to happen can actually make it happen, but if that same psychology turns, it won’t happen. If psychology turns in the stock market, watch out below.
Houses are cheaper than they were 2 and 3 years ago. Mortgage rates are lower than they were 2 and 3 years ago,
actual payments are less than they were 2 and 3 years ago, SO where are the buyers ??It’s a bargain now compared to 2 and 3 years ago, but the psychology has changed 180 degrees, and people who are smart are concerned, and those that aren’t concerned don’t understand what is happening.
Where are all the genius “investors” who went to seminars and bought books and tapes on RE investing ?
Since prices are cheaper now, the market should be booming, but it’s not.The party is over, but some people are just arriving, thinking that they aren’t too late and there is more fun to come.
The band has packed up, the liquor bottles are empty, there is trash all over the place. There’s a mess that needs to be cleaned up.
Anybody who buys a house today is helping to clean up that mess and saving somebody else the trouble.
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