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Duck–

You really ought to try and spin this stuff somewhere else…

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exeunt-

home prices are set at the margins…I’m sure you know this

the last several years of loose lending standards have enabled people who “should” be apartment-dwellers to purchase the low end of the market, thereby enabling the move-up market to get to dizzying heights. EVERYTHING has been dependent on the 7-11 clerk doing a stated income loan overpaying for a 100K “condo” by 200K. This is the stupid money. Once it dries up (it already has to a large extent) the game is over. Once we return to 5-10% down requirements (heaven forbid 20%) you will see that there is no-one left to buy the low-end stuff and the sales in the middle will all be must-sell and distress-sell situations.

Since the market is set at the margins…this will affect everyone regardless of what type of mortgage they have.

most of us are not here for investment advice…we are just here to chronicle the ongoing fraud perpetrated against Americans. Of course the hedgies have been making money hand over fist…they will continue to do so…does that mean house prices are not severely over the top?

No.

“Report mortgage fraud to the FBI, everytime you see it.”

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Good find, LostCat. I happen to know that several fast-food joints are looking for help…perhaps these guys won’t be out of work for too long. (They may be underqualified for the job, is my only concern;-)

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Well…at least those young hotshot loan guys can go live in their convertible Ferraris.

Suck it, guys. You all better hope Carl’s Jr. is still hiring cause I got all the day-laborers I need.

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waiting hawk-

Good to see you around!

LBC

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Money market=completely liquid.

I’d move it to another FDIC insured depository that hasn’t been deeply involved in subprime lending.

Screw GMAC.

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My name here for the last year plus has been “lendingbubblecontinues”. Finally, it looks to be coming back down to Earth.

I’ve often said that housing prices can “gap down” just like stocks, once their liquidity dries up. I truly believe that once it takes an actual down payment (even 3-5%) to buy a house in SoCal again, that the market will effectively seize up, and homeowners will wake up to find their homes are effectively “valued” at 30% less than they were before they went to sleep the night before.

Feel free to disagree, but remember that those who say it will never happen again (like sdrealtor this morning saying we will never see a 3/2 SFR for 250K in decent neighborhood in SD again) are speculating just like I am.

What I do know is that there are a lot of people thinking loans are going to be funded on houses that entered escrow in the last few days that are NOT going to make it.

The market is going straight down the tubes from here and there ain’t nothing David Lereah’s MOMMY can do about it!

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Wrong.

Panic.

LBC

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My final thought..you baited me by calling me “bitter” which is fine.

If I am “bitter”, so be it.

It is far better to be “bitter” than “stuccoed”.

Good luck to you.

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C’mon 400K in Klantee or Hell Cajon? The day laborers pitching pennies at the bus stop on the corner could afford that…

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bitter, no. priced out, no.

vindicated, yes.

I’ve had a few people laugh when I told ’em I thought the San Diego real estate market might come back down to reality.

looking more and more like I was right, isn’t it?

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Actually, as I re-think my original post I am forced to ponder another question:

Is this the best that the PPT could do?

To quote Daffy Duck: “Yikes…and awaaaay!”

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What I’ve really noticed is that my rent hasn’t moved one iota in four years and I live in a desirable North County neighborhood, in a single family home, with children and pets. We regularly socialize, dine, and vacation with our neighbors. Hell…they even know that we rent…IMAGINE!

I also notice that I have several thousand dollars left over each month which I can save or use for fun things, which I do a lot. You should see the vacations we take (with cash).

I notice my car doesn’t have spinning wheels or a “Consult a Realtor” license plate holder (which I am very proud of). I notice that our incomes aren’t tied to the real estate/mortgage business.

I notice that my kids are helping to set the high API scores at and are well integrated into the fantastic schools we send them to (thanks to property taxes paid by my landlord).

Finally, I notice a lot of people who “must” sell their homes for whatever reason and I have more control in whether they succeed or fail.

Sorry, people…I’ll pass on your ridiculously over-priced pieces of shit for now…maybe next year or the year after that or the year after that…

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If $350K were all the seller could get for it, then wouldn’t that become “today’s market value?”

Not following the original poster here….at all…

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