[HLS]

Allowing people to stay in homes is a HUGE mistake, even if these people have to deed the property back. It will just prolong the pain, agony and reality.

There are 3 groups of people.
1. Those that lied about their income and assets and/or bought with 100% financing and never should have been allowed to qualify for a loan in the first place.
2.Those who truly qualified for a loan but chose to gamble with an interest only ARM and now cannot afford a real payment.
3. Those with a down payment who qualified for an A paper prime loan at the time, but now have hardship and cannot afford to pay.

Should any of these groups be allowed to stay in the house when they cannot afford to pay today ??
IF they can afford to pay something, they will not be homeless. Perhaps there needs to be a huge reshuffling of residences. There is something called “RENTING what you can afford”

I know families of 6, 3 generations that grew up in 3 bedroom <1500 sq ft home. Today, if people were told to do that there would be lawsuits that their civil rights were being violated.

Foreclosing on a home and having it sell for what it is worth today would mean dragging down the value of ALL other homes in the area AND create a loss that must be realized on the books. More chaos, more paper wealth disappearing like a hooker on El Cajon Blvd when the vice squad shows up. Vanish into thin air.

If ppl are allowed to stay in the home, everybody can pretend what the value is AND the loan amount remains artificial on someone's books, since it doesn't get paid off at 50c on the dollar.
Mark to market accounting is avoided.
This is absolute artificial accounting about what the value of assets actually are. Solvency of many is truly at risk.

Perhaps many people can afford a house, but they cannot afford the one that they are currently living in. Facing this reality would be painful for millions, to have to be told (and face) that they are living beyond their means, which would probably lead to even more lawsuits of people's rights being violated.

More government intervention is definitely coming.
Perhaps boarding houses will make a comeback and families of 3 or 4 will be TOLD to live in 1 or 2 bedrooms, instead of being given food stamps and extended unemployment benefits to be able to continue to buy things that they really cannot afford, while staying in their 5 bedroom house with a temporary loan modification because it is "good" for the economy and will "stabilize" housing prices. This is delusional.

The govt is putting band aids on a drug addicted patient who just had a lung transplant and is in a coma. Perhaps to some people it looks like they are doing something, but to those who understand, that band aid is going to very little to cure that patient...

[HLS]

Allowing people to stay in homes is a HUGE mistake, even if these people have to deed the property back. It will just prolong the pain, agony and reality.

There are 3 groups of people.
1. Those that lied about their income and assets and/or bought with 100% financing and never should have been allowed to qualify for a loan in the first place.
2.Those who truly qualified for a loan but chose to gamble with an interest only ARM and now cannot afford a real payment.
3. Those with a down payment who qualified for an A paper prime loan at the time, but now have hardship and cannot afford to pay.

Should any of these groups be allowed to stay in the house when they cannot afford to pay today ??
IF they can afford to pay something, they will not be homeless. Perhaps there needs to be a huge reshuffling of residences. There is something called “RENTING what you can afford”

I know families of 6, 3 generations that grew up in 3 bedroom <1500 sq ft home. Today, if people were told to do that there would be lawsuits that their civil rights were being violated.

Foreclosing on a home and having it sell for what it is worth today would mean dragging down the value of ALL other homes in the area AND create a loss that must be realized on the books. More chaos, more paper wealth disappearing like a hooker on El Cajon Blvd when the vice squad shows up. Vanish into thin air.

If ppl are allowed to stay in the home, everybody can pretend what the value is AND the loan amount remains artificial on someone's books, since it doesn't get paid off at 50c on the dollar.
Mark to market accounting is avoided.
This is absolute artificial accounting about what the value of assets actually are. Solvency of many is truly at risk.

Perhaps many people can afford a house, but they cannot afford the one that they are currently living in. Facing this reality would be painful for millions, to have to be told (and face) that they are living beyond their means, which would probably lead to even more lawsuits of people's rights being violated.

More government intervention is definitely coming.
Perhaps boarding houses will make a comeback and families of 3 or 4 will be TOLD to live in 1 or 2 bedrooms, instead of being given food stamps and extended unemployment benefits to be able to continue to buy things that they really cannot afford, while staying in their 5 bedroom house with a temporary loan modification because it is "good" for the economy and will "stabilize" housing prices. This is delusional.

The govt is putting band aids on a drug addicted patient who just had a lung transplant and is in a coma. Perhaps to some people it looks like they are doing something, but to those who understand, that band aid is going to very little to cure that patient...

[HLS]

Scaredy..
I freaked out a tiny bit starting around 2003 when I saw what was going on and I planned accordingly, with few regrets.

It’s not a matter of when the bottom will be, because different areas will hit bottoms at different times. The real bottom will be when the majority of people wake up and are REALLY scared about what they see (we aren’t there yet)…but then that could be a fake call,then a bounce and then a retest of the lows.
A bottom in an area will just be when very few people “must” sell, yet many will still be in denial. If nobody tries to sell, they can fantasize and pretend about the value of their house.

IF the govt stops the buyer’s tax credit end of April without another extension, that could be the start of the next leg down, partially depending on where foreclosure moratoriums and other manipulation is at the time and the status of ARM resets and further evidence of many more people not being able to hang on any longer due to continued harsh economic circumstances.

Even if we knew when the bottom will be, it’s really a matter of what will be for sale at that time.
97.5% of homes will not be for sale at the bottom.
Perhaps we could say that a 2500 Sq ft home might only be worth $350K at the bottom, but there might not be any for sale, it becomes a paradox.

Buy a house like you buy a car. You like it, you can afford it, you want it and you expect it to drop in value. Any appreciation should be a bonus, never an expectation. You wont be disappointed.

Find a house that you love.
Put 20% down, avoid mortgage insurance, buy the rate down, start out with some equity and a payment that you can afford, and don’t spend hours trying to figure out if gold or other investmants MIGHT have a better ROI, because you probably will not beat the compounded return of savings that you are guaranteed with a lower mortgage payment and no mortgage insurance.
Assuming that you want to stay in the area, you have to live somewhere.
I still think FHA is a sucker’s loan. With good credit put 10% down if you don’t want to do 20% and avoid the 1.75% funding fee and 5 years of mandatory mortg ins. Call me when you’re ready!

[HLS]

Scaredy..
I freaked out a tiny bit starting around 2003 when I saw what was going on and I planned accordingly, with few regrets.

It’s not a matter of when the bottom will be, because different areas will hit bottoms at different times. The real bottom will be when the majority of people wake up and are REALLY scared about what they see (we aren’t there yet)…but then that could be a fake call,then a bounce and then a retest of the lows.
A bottom in an area will just be when very few people “must” sell, yet many will still be in denial. If nobody tries to sell, they can fantasize and pretend about the value of their house.

IF the govt stops the buyer’s tax credit end of April without another extension, that could be the start of the next leg down, partially depending on where foreclosure moratoriums and other manipulation is at the time and the status of ARM resets and further evidence of many more people not being able to hang on any longer due to continued harsh economic circumstances.

Even if we knew when the bottom will be, it’s really a matter of what will be for sale at that time.
97.5% of homes will not be for sale at the bottom.
Perhaps we could say that a 2500 Sq ft home might only be worth $350K at the bottom, but there might not be any for sale, it becomes a paradox.

Buy a house like you buy a car. You like it, you can afford it, you want it and you expect it to drop in value. Any appreciation should be a bonus, never an expectation. You wont be disappointed.

Find a house that you love.
Put 20% down, avoid mortgage insurance, buy the rate down, start out with some equity and a payment that you can afford, and don’t spend hours trying to figure out if gold or other investmants MIGHT have a better ROI, because you probably will not beat the compounded return of savings that you are guaranteed with a lower mortgage payment and no mortgage insurance.
Assuming that you want to stay in the area, you have to live somewhere.
I still think FHA is a sucker’s loan. With good credit put 10% down if you don’t want to do 20% and avoid the 1.75% funding fee and 5 years of mandatory mortg ins. Call me when you’re ready!

[HLS]

Scaredy..
I freaked out a tiny bit starting around 2003 when I saw what was going on and I planned accordingly, with few regrets.

It’s not a matter of when the bottom will be, because different areas will hit bottoms at different times. The real bottom will be when the majority of people wake up and are REALLY scared about what they see (we aren’t there yet)…but then that could be a fake call,then a bounce and then a retest of the lows.
A bottom in an area will just be when very few people “must” sell, yet many will still be in denial. If nobody tries to sell, they can fantasize and pretend about the value of their house.

IF the govt stops the buyer’s tax credit end of April without another extension, that could be the start of the next leg down, partially depending on where foreclosure moratoriums and other manipulation is at the time and the status of ARM resets and further evidence of many more people not being able to hang on any longer due to continued harsh economic circumstances.

Even if we knew when the bottom will be, it’s really a matter of what will be for sale at that time.
97.5% of homes will not be for sale at the bottom.
Perhaps we could say that a 2500 Sq ft home might only be worth $350K at the bottom, but there might not be any for sale, it becomes a paradox.

Buy a house like you buy a car. You like it, you can afford it, you want it and you expect it to drop in value. Any appreciation should be a bonus, never an expectation. You wont be disappointed.

Find a house that you love.
Put 20% down, avoid mortgage insurance, buy the rate down, start out with some equity and a payment that you can afford, and don’t spend hours trying to figure out if gold or other investmants MIGHT have a better ROI, because you probably will not beat the compounded return of savings that you are guaranteed with a lower mortgage payment and no mortgage insurance.
Assuming that you want to stay in the area, you have to live somewhere.
I still think FHA is a sucker’s loan. With good credit put 10% down if you don’t want to do 20% and avoid the 1.75% funding fee and 5 years of mandatory mortg ins. Call me when you’re ready!

[HLS]

Scaredy..
I freaked out a tiny bit starting around 2003 when I saw what was going on and I planned accordingly, with few regrets.

It’s not a matter of when the bottom will be, because different areas will hit bottoms at different times. The real bottom will be when the majority of people wake up and are REALLY scared about what they see (we aren’t there yet)…but then that could be a fake call,then a bounce and then a retest of the lows.
A bottom in an area will just be when very few people “must” sell, yet many will still be in denial. If nobody tries to sell, they can fantasize and pretend about the value of their house.

IF the govt stops the buyer’s tax credit end of April without another extension, that could be the start of the next leg down, partially depending on where foreclosure moratoriums and other manipulation is at the time and the status of ARM resets and further evidence of many more people not being able to hang on any longer due to continued harsh economic circumstances.

Even if we knew when the bottom will be, it’s really a matter of what will be for sale at that time.
97.5% of homes will not be for sale at the bottom.
Perhaps we could say that a 2500 Sq ft home might only be worth $350K at the bottom, but there might not be any for sale, it becomes a paradox.

Buy a house like you buy a car. You like it, you can afford it, you want it and you expect it to drop in value. Any appreciation should be a bonus, never an expectation. You wont be disappointed.

Find a house that you love.
Put 20% down, avoid mortgage insurance, buy the rate down, start out with some equity and a payment that you can afford, and don’t spend hours trying to figure out if gold or other investmants MIGHT have a better ROI, because you probably will not beat the compounded return of savings that you are guaranteed with a lower mortgage payment and no mortgage insurance.
Assuming that you want to stay in the area, you have to live somewhere.
I still think FHA is a sucker’s loan. With good credit put 10% down if you don’t want to do 20% and avoid the 1.75% funding fee and 5 years of mandatory mortg ins. Call me when you’re ready!

[HLS]

Scaredy..
I freaked out a tiny bit starting around 2003 when I saw what was going on and I planned accordingly, with few regrets.

It’s not a matter of when the bottom will be, because different areas will hit bottoms at different times. The real bottom will be when the majority of people wake up and are REALLY scared about what they see (we aren’t there yet)…but then that could be a fake call,then a bounce and then a retest of the lows.
A bottom in an area will just be when very few people “must” sell, yet many will still be in denial. If nobody tries to sell, they can fantasize and pretend about the value of their house.

IF the govt stops the buyer’s tax credit end of April without another extension, that could be the start of the next leg down, partially depending on where foreclosure moratoriums and other manipulation is at the time and the status of ARM resets and further evidence of many more people not being able to hang on any longer due to continued harsh economic circumstances.

Even if we knew when the bottom will be, it’s really a matter of what will be for sale at that time.
97.5% of homes will not be for sale at the bottom.
Perhaps we could say that a 2500 Sq ft home might only be worth $350K at the bottom, but there might not be any for sale, it becomes a paradox.

Buy a house like you buy a car. You like it, you can afford it, you want it and you expect it to drop in value. Any appreciation should be a bonus, never an expectation. You wont be disappointed.

Find a house that you love.
Put 20% down, avoid mortgage insurance, buy the rate down, start out with some equity and a payment that you can afford, and don’t spend hours trying to figure out if gold or other investmants MIGHT have a better ROI, because you probably will not beat the compounded return of savings that you are guaranteed with a lower mortgage payment and no mortgage insurance.
Assuming that you want to stay in the area, you have to live somewhere.
I still think FHA is a sucker’s loan. With good credit put 10% down if you don’t want to do 20% and avoid the 1.75% funding fee and 5 years of mandatory mortg ins. Call me when you’re ready!

[HLS]

The headline clearly says MAY become more expensive/harder.. I’ll believe it when I see it.

FHA is the next subprime, a taxpayer bailout will be needed. FHA losses must be staggering and well hidden. the BIG CHANGE that FHA made awhile back was going from 3% down to 3.5% down. Politicians bought and paid for. I don’t think you will ever see FHA @ 10% down. The housing market would collapse.

FNMA has already earmarked around 115 BILLION dollars of taxpayer money out of $400 billion allotted.. They lost $19BN in Q3 and $15BN in Q2,,, $34 billion loss in 6 months,,,niiiice.

There was no govt intervention on the way up while the bubble was inflating, there will be no shortage of intervention on the way down.

The only fix for the housing mess is accelerated foreclosures not delaying them. Modifications are just a delay.
When I tell people that I don’t think they can afford the house they want to buy they think I’m nuts.

There’s still way too much optimism about prices “recovering”… Prices falling IS the recovery, back to reality.
I don’t think that it is possible for homes to ever be worth what they were in 2005-06 in today’s dollars, yet many people in bubblicious areas are hanging on solely because they don’t want to lose money.

Foreclosures are not the problem, foreclosures are the solution. Houses wont sit empty, they will be purchased for what they are worth and what buyers can afford to qualify for at the time.

Don’t forget, mortgage rates are near the lowest ever, yet millions cannot qualify for one reason or another.

[HLS]

The headline clearly says MAY become more expensive/harder.. I’ll believe it when I see it.

FHA is the next subprime, a taxpayer bailout will be needed. FHA losses must be staggering and well hidden. the BIG CHANGE that FHA made awhile back was going from 3% down to 3.5% down. Politicians bought and paid for. I don’t think you will ever see FHA @ 10% down. The housing market would collapse.

FNMA has already earmarked around 115 BILLION dollars of taxpayer money out of $400 billion allotted.. They lost $19BN in Q3 and $15BN in Q2,,, $34 billion loss in 6 months,,,niiiice.

There was no govt intervention on the way up while the bubble was inflating, there will be no shortage of intervention on the way down.

The only fix for the housing mess is accelerated foreclosures not delaying them. Modifications are just a delay.
When I tell people that I don’t think they can afford the house they want to buy they think I’m nuts.

There’s still way too much optimism about prices “recovering”… Prices falling IS the recovery, back to reality.
I don’t think that it is possible for homes to ever be worth what they were in 2005-06 in today’s dollars, yet many people in bubblicious areas are hanging on solely because they don’t want to lose money.

Foreclosures are not the problem, foreclosures are the solution. Houses wont sit empty, they will be purchased for what they are worth and what buyers can afford to qualify for at the time.

Don’t forget, mortgage rates are near the lowest ever, yet millions cannot qualify for one reason or another.

[HLS]

The headline clearly says MAY become more expensive/harder.. I’ll believe it when I see it.

FHA is the next subprime, a taxpayer bailout will be needed. FHA losses must be staggering and well hidden. the BIG CHANGE that FHA made awhile back was going from 3% down to 3.5% down. Politicians bought and paid for. I don’t think you will ever see FHA @ 10% down. The housing market would collapse.

FNMA has already earmarked around 115 BILLION dollars of taxpayer money out of $400 billion allotted.. They lost $19BN in Q3 and $15BN in Q2,,, $34 billion loss in 6 months,,,niiiice.

There was no govt intervention on the way up while the bubble was inflating, there will be no shortage of intervention on the way down.

The only fix for the housing mess is accelerated foreclosures not delaying them. Modifications are just a delay.
When I tell people that I don’t think they can afford the house they want to buy they think I’m nuts.

There’s still way too much optimism about prices “recovering”… Prices falling IS the recovery, back to reality.
I don’t think that it is possible for homes to ever be worth what they were in 2005-06 in today’s dollars, yet many people in bubblicious areas are hanging on solely because they don’t want to lose money.

Foreclosures are not the problem, foreclosures are the solution. Houses wont sit empty, they will be purchased for what they are worth and what buyers can afford to qualify for at the time.

Don’t forget, mortgage rates are near the lowest ever, yet millions cannot qualify for one reason or another.

[HLS]

The headline clearly says MAY become more expensive/harder.. I’ll believe it when I see it.

FHA is the next subprime, a taxpayer bailout will be needed. FHA losses must be staggering and well hidden. the BIG CHANGE that FHA made awhile back was going from 3% down to 3.5% down. Politicians bought and paid for. I don’t think you will ever see FHA @ 10% down. The housing market would collapse.

FNMA has already earmarked around 115 BILLION dollars of taxpayer money out of $400 billion allotted.. They lost $19BN in Q3 and $15BN in Q2,,, $34 billion loss in 6 months,,,niiiice.

There was no govt intervention on the way up while the bubble was inflating, there will be no shortage of intervention on the way down.

The only fix for the housing mess is accelerated foreclosures not delaying them. Modifications are just a delay.
When I tell people that I don’t think they can afford the house they want to buy they think I’m nuts.

There’s still way too much optimism about prices “recovering”… Prices falling IS the recovery, back to reality.
I don’t think that it is possible for homes to ever be worth what they were in 2005-06 in today’s dollars, yet many people in bubblicious areas are hanging on solely because they don’t want to lose money.

Foreclosures are not the problem, foreclosures are the solution. Houses wont sit empty, they will be purchased for what they are worth and what buyers can afford to qualify for at the time.

Don’t forget, mortgage rates are near the lowest ever, yet millions cannot qualify for one reason or another.

[HLS]

The headline clearly says MAY become more expensive/harder.. I’ll believe it when I see it.

FHA is the next subprime, a taxpayer bailout will be needed. FHA losses must be staggering and well hidden. the BIG CHANGE that FHA made awhile back was going from 3% down to 3.5% down. Politicians bought and paid for. I don’t think you will ever see FHA @ 10% down. The housing market would collapse.

FNMA has already earmarked around 115 BILLION dollars of taxpayer money out of $400 billion allotted.. They lost $19BN in Q3 and $15BN in Q2,,, $34 billion loss in 6 months,,,niiiice.

There was no govt intervention on the way up while the bubble was inflating, there will be no shortage of intervention on the way down.

The only fix for the housing mess is accelerated foreclosures not delaying them. Modifications are just a delay.
When I tell people that I don’t think they can afford the house they want to buy they think I’m nuts.

There’s still way too much optimism about prices “recovering”… Prices falling IS the recovery, back to reality.
I don’t think that it is possible for homes to ever be worth what they were in 2005-06 in today’s dollars, yet many people in bubblicious areas are hanging on solely because they don’t want to lose money.

Foreclosures are not the problem, foreclosures are the solution. Houses wont sit empty, they will be purchased for what they are worth and what buyers can afford to qualify for at the time.

Don’t forget, mortgage rates are near the lowest ever, yet millions cannot qualify for one reason or another.

[HLS]

A statement was issued recently that even if current administration attempts of modifications are successful, there are still 3 to 6 million foreclosures expected in the next few years, and 300-500 banks could fail.

Logically, there is nothing they can do to stop it. The “Deed for Lease” program from FNMA to rent back to those who deed their property back is just another feeble hope of slowing the train wreck.

Rewarding people who made poor choices by allowing them to stay in house that they cannot afford is irresponsible.

Billions upon billions of dollars has disappeared in perceived wealth, never to be seen again, yet so many people continue to spend like they did 5 years ago…so many people are still in denial about what could happen in the next 5-10 years.

The govt will continue to spread false hope that it’s improving because just imagine what will happen if they don’t….

[HLS]

A statement was issued recently that even if current administration attempts of modifications are successful, there are still 3 to 6 million foreclosures expected in the next few years, and 300-500 banks could fail.

Logically, there is nothing they can do to stop it. The “Deed for Lease” program from FNMA to rent back to those who deed their property back is just another feeble hope of slowing the train wreck.

Rewarding people who made poor choices by allowing them to stay in house that they cannot afford is irresponsible.

Billions upon billions of dollars has disappeared in perceived wealth, never to be seen again, yet so many people continue to spend like they did 5 years ago…so many people are still in denial about what could happen in the next 5-10 years.

The govt will continue to spread false hope that it’s improving because just imagine what will happen if they don’t….

[HLS]

A statement was issued recently that even if current administration attempts of modifications are successful, there are still 3 to 6 million foreclosures expected in the next few years, and 300-500 banks could fail.

Logically, there is nothing they can do to stop it. The “Deed for Lease” program from FNMA to rent back to those who deed their property back is just another feeble hope of slowing the train wreck.

Rewarding people who made poor choices by allowing them to stay in house that they cannot afford is irresponsible.

Billions upon billions of dollars has disappeared in perceived wealth, never to be seen again, yet so many people continue to spend like they did 5 years ago…so many people are still in denial about what could happen in the next 5-10 years.

The govt will continue to spread false hope that it’s improving because just imagine what will happen if they don’t….

[Author]

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