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February 11, 2008 at 7:28 AM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151647February 11, 2008 at 7:28 AM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151666jpinpbParticipant
don’tfollow – that is what happened in the 90’s. I remember and this time around was financially conservative. It’s not that they will forget. If they didn’t experience it first hand, they won’t know better.
February 11, 2008 at 7:28 AM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151740jpinpbParticipantdon’tfollow – that is what happened in the 90’s. I remember and this time around was financially conservative. It’s not that they will forget. If they didn’t experience it first hand, they won’t know better.
jpinpbParticipantI am a little surprised, b/c as you say, even the media is finally reporting how bad real estate is w/foreclosures and defaults and subprimes, etc. etc. Hard to be in denial when they’re coming around and admitting that it’s bad, w/unemployment on the rise, etc. I mean, you have to live under a rock. But since I’ve been to a few auctions in the past, there is this crazed frenzy and it gets a hold of people when they’re bidding. I’m sure REDC counts on that to help boost the price.
jpinpbParticipantI am a little surprised, b/c as you say, even the media is finally reporting how bad real estate is w/foreclosures and defaults and subprimes, etc. etc. Hard to be in denial when they’re coming around and admitting that it’s bad, w/unemployment on the rise, etc. I mean, you have to live under a rock. But since I’ve been to a few auctions in the past, there is this crazed frenzy and it gets a hold of people when they’re bidding. I’m sure REDC counts on that to help boost the price.
jpinpbParticipantI am a little surprised, b/c as you say, even the media is finally reporting how bad real estate is w/foreclosures and defaults and subprimes, etc. etc. Hard to be in denial when they’re coming around and admitting that it’s bad, w/unemployment on the rise, etc. I mean, you have to live under a rock. But since I’ve been to a few auctions in the past, there is this crazed frenzy and it gets a hold of people when they’re bidding. I’m sure REDC counts on that to help boost the price.
jpinpbParticipantI am a little surprised, b/c as you say, even the media is finally reporting how bad real estate is w/foreclosures and defaults and subprimes, etc. etc. Hard to be in denial when they’re coming around and admitting that it’s bad, w/unemployment on the rise, etc. I mean, you have to live under a rock. But since I’ve been to a few auctions in the past, there is this crazed frenzy and it gets a hold of people when they’re bidding. I’m sure REDC counts on that to help boost the price.
jpinpbParticipantI am a little surprised, b/c as you say, even the media is finally reporting how bad real estate is w/foreclosures and defaults and subprimes, etc. etc. Hard to be in denial when they’re coming around and admitting that it’s bad, w/unemployment on the rise, etc. I mean, you have to live under a rock. But since I’ve been to a few auctions in the past, there is this crazed frenzy and it gets a hold of people when they’re bidding. I’m sure REDC counts on that to help boost the price.
February 10, 2008 at 9:22 AM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #150764jpinpbParticipantI think that people did learn from the bust of the 90’s. I did. Problem is that now you have a batch of new people to the game, people who were not benefitting from the experience of the 90’s.
I put 20% down in the 90’s and I did NOT walk away, but did everything I could to hold on until the market got better and then I got out. Aged a lot during those struggling years. Won’t bite off more than I can chew now. That is the main reason I wasn’t suckered into the subprime loan this time around. But believe it or not, people were telling me to walk away back then. And I had a lot of money into it.
ortho – you’re right. If people put money down, harder to just walk.
I know there are charts for percentage of subprimes, but I thought it was nationally. I think San Diego is a different animal.
I know someone who bought a condo in La Jolla in about ’98. In 2002 bought another condo. Flipped that in 2005 and made $$$. Last year bought an expensive home from bank. Now trying to sell for more. Not moving. That person makes very good money (dr.) I just don’t see him going under. Wouldn’t the bank on the new house attach a lien on the condo he owns in La Jolla? I don’t think he can walk. He even has $$ down on the house. Tough situation. Probably can last a year of making payments. After that, it’s going to hurt.
February 10, 2008 at 9:22 AM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151026jpinpbParticipantI think that people did learn from the bust of the 90’s. I did. Problem is that now you have a batch of new people to the game, people who were not benefitting from the experience of the 90’s.
I put 20% down in the 90’s and I did NOT walk away, but did everything I could to hold on until the market got better and then I got out. Aged a lot during those struggling years. Won’t bite off more than I can chew now. That is the main reason I wasn’t suckered into the subprime loan this time around. But believe it or not, people were telling me to walk away back then. And I had a lot of money into it.
ortho – you’re right. If people put money down, harder to just walk.
I know there are charts for percentage of subprimes, but I thought it was nationally. I think San Diego is a different animal.
I know someone who bought a condo in La Jolla in about ’98. In 2002 bought another condo. Flipped that in 2005 and made $$$. Last year bought an expensive home from bank. Now trying to sell for more. Not moving. That person makes very good money (dr.) I just don’t see him going under. Wouldn’t the bank on the new house attach a lien on the condo he owns in La Jolla? I don’t think he can walk. He even has $$ down on the house. Tough situation. Probably can last a year of making payments. After that, it’s going to hurt.
February 10, 2008 at 9:22 AM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151034jpinpbParticipantI think that people did learn from the bust of the 90’s. I did. Problem is that now you have a batch of new people to the game, people who were not benefitting from the experience of the 90’s.
I put 20% down in the 90’s and I did NOT walk away, but did everything I could to hold on until the market got better and then I got out. Aged a lot during those struggling years. Won’t bite off more than I can chew now. That is the main reason I wasn’t suckered into the subprime loan this time around. But believe it or not, people were telling me to walk away back then. And I had a lot of money into it.
ortho – you’re right. If people put money down, harder to just walk.
I know there are charts for percentage of subprimes, but I thought it was nationally. I think San Diego is a different animal.
I know someone who bought a condo in La Jolla in about ’98. In 2002 bought another condo. Flipped that in 2005 and made $$$. Last year bought an expensive home from bank. Now trying to sell for more. Not moving. That person makes very good money (dr.) I just don’t see him going under. Wouldn’t the bank on the new house attach a lien on the condo he owns in La Jolla? I don’t think he can walk. He even has $$ down on the house. Tough situation. Probably can last a year of making payments. After that, it’s going to hurt.
February 10, 2008 at 9:22 AM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151052jpinpbParticipantI think that people did learn from the bust of the 90’s. I did. Problem is that now you have a batch of new people to the game, people who were not benefitting from the experience of the 90’s.
I put 20% down in the 90’s and I did NOT walk away, but did everything I could to hold on until the market got better and then I got out. Aged a lot during those struggling years. Won’t bite off more than I can chew now. That is the main reason I wasn’t suckered into the subprime loan this time around. But believe it or not, people were telling me to walk away back then. And I had a lot of money into it.
ortho – you’re right. If people put money down, harder to just walk.
I know there are charts for percentage of subprimes, but I thought it was nationally. I think San Diego is a different animal.
I know someone who bought a condo in La Jolla in about ’98. In 2002 bought another condo. Flipped that in 2005 and made $$$. Last year bought an expensive home from bank. Now trying to sell for more. Not moving. That person makes very good money (dr.) I just don’t see him going under. Wouldn’t the bank on the new house attach a lien on the condo he owns in La Jolla? I don’t think he can walk. He even has $$ down on the house. Tough situation. Probably can last a year of making payments. After that, it’s going to hurt.
February 10, 2008 at 9:22 AM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151124jpinpbParticipantI think that people did learn from the bust of the 90’s. I did. Problem is that now you have a batch of new people to the game, people who were not benefitting from the experience of the 90’s.
I put 20% down in the 90’s and I did NOT walk away, but did everything I could to hold on until the market got better and then I got out. Aged a lot during those struggling years. Won’t bite off more than I can chew now. That is the main reason I wasn’t suckered into the subprime loan this time around. But believe it or not, people were telling me to walk away back then. And I had a lot of money into it.
ortho – you’re right. If people put money down, harder to just walk.
I know there are charts for percentage of subprimes, but I thought it was nationally. I think San Diego is a different animal.
I know someone who bought a condo in La Jolla in about ’98. In 2002 bought another condo. Flipped that in 2005 and made $$$. Last year bought an expensive home from bank. Now trying to sell for more. Not moving. That person makes very good money (dr.) I just don’t see him going under. Wouldn’t the bank on the new house attach a lien on the condo he owns in La Jolla? I don’t think he can walk. He even has $$ down on the house. Tough situation. Probably can last a year of making payments. After that, it’s going to hurt.
February 10, 2008 at 8:05 AM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #150700jpinpbParticipantThat is a very good point. I figured they would continually trinkle in over time.
What I would mostly like to know is what percentage of homes in San Diego were bought w/subprime loans for each year from, say, 2002 to 2006. That will give an idea what we’re in for here. Some people were saying only 10-15%. I can’t accept that. I’m thinking closer to 80%. I read, maybe on Pig. that some people who owned their place for years, had equity and did HELC w/subprime loans. Crazy.
I also think no one is saying anything because they’re in denial. But also they are very shortsighted. They were extremely shortsighted and in denial during the boom. Houses were going to keep going up to infinity, remember? Two-three years ago I was hounded by lenders, friends, etc to buy and I thought, “Are you crazed?” I’m surprised it went as long as it did.
The same shortsightedness will happen w/these loans adjusting. They’re just going to worry about today. It will be too overwhelming to think about the next few years. But as I said in a previous post, the interest rate reduction must be helping w/some of those loans resetting. Their rate might not go so high. Not sure. Some people who aren’t upside-down can refinance into a fixed.
Maybe it won’t be so bad.
February 10, 2008 at 8:05 AM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #150960jpinpbParticipantThat is a very good point. I figured they would continually trinkle in over time.
What I would mostly like to know is what percentage of homes in San Diego were bought w/subprime loans for each year from, say, 2002 to 2006. That will give an idea what we’re in for here. Some people were saying only 10-15%. I can’t accept that. I’m thinking closer to 80%. I read, maybe on Pig. that some people who owned their place for years, had equity and did HELC w/subprime loans. Crazy.
I also think no one is saying anything because they’re in denial. But also they are very shortsighted. They were extremely shortsighted and in denial during the boom. Houses were going to keep going up to infinity, remember? Two-three years ago I was hounded by lenders, friends, etc to buy and I thought, “Are you crazed?” I’m surprised it went as long as it did.
The same shortsightedness will happen w/these loans adjusting. They’re just going to worry about today. It will be too overwhelming to think about the next few years. But as I said in a previous post, the interest rate reduction must be helping w/some of those loans resetting. Their rate might not go so high. Not sure. Some people who aren’t upside-down can refinance into a fixed.
Maybe it won’t be so bad.
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