[michigoose]

California and Florida are on track with what I expected, but Boston/NY are behind. I guess it will take a while for Wall St. bonuses to get hammered and all of the VC money in Boston’s biotech corridor to dry up.

I live in Michigan, and think we’ve seen the worst of it. Values might continue to decline in some areas – especially in some of the higher end suburbs of Detroit like the Grosse Pointes, and West Bloomfield.

We have been “the economic bellweather of the nation” for nearly a century and our decline started in 2002. The price/square foot values in my local area (Ann Arbor)have crept up about 1 1/2% over the last month and a half. Perhaps, it’s just noise in the system, but I’m hopeful. The higher end here will continue to get hammered as might the condo market, but the median detached homes are steadying out.

Of course, you can do the math. It’s 2007. Our decline has been going on for five years. We aren’t going up; we’re just starting to level out.

[michigoose]

Realtors who knock on your door are clearly out to get to know both neighborhoods and people. It’s called prospecting. Do you really want someone representing you who just waits around for the phone to ring, or someone who actively makes an effort to meet new people and prospects every day?

I’d rather have a Realtor who knocks on doors and looks under rocks for someone to buy my house, than have someone who spends all day at the salon having her nails done. Wouldn’t you?

[michigoose]

I’ve often thought about the similarities between the “subprime default” issue and the what the S&Ls went through in the 1980s.

Back then, a key component of the failures were the inflated appraisals that loan officers solicited and accepted to justify their loans. Today, the appraisal industry has vastly higher standards although I’m sure we’ve all heard of appraisers who’ve felt pressured into delivering specific valuations, or lose future business.

Today, credit reporting and rating agencies take the place of appraisers. A FICO score really doesn’t tell much about anyone’s ability to pay back money, rather it tells more about *how valuable* a credit customer has been in the past.

I hate to admit that I have only a slightly better than mediocre credit rating because five years ago I paid off my 30 year mortgage in under seven years, and now no longer have that line of credit. In addition, I only have two credit cards, with small limits that I often bump up against, even though I usually pay my bill in full every month. The fact that I’ve had these cards for over 25 years works in my favor, but somehow not enough to give me an interest rate of under 20%. Hence, I rarely carry a balance.

Until credit ratings take into account an individual’s other assets, income, and employability, they’re pretty useless in determining who is truly credit worthy.

[michigoose]

I’ve often thought about the similarities between the “subprime default” issue and the what the S&Ls went through in the 1980s.

Back then, a key component of the failures were the inflated appraisals that loan officers solicited and accepted to justify their loans. Today, the appraisal industry has vastly higher standards although I’m sure we’ve all heard of appraisers who’ve felt pressured into delivering specific valuations, or lose future business.

Today, credit reporting and rating agencies take the place of appraisers. A FICO score really doesn’t tell much about anyone’s ability to pay back money, rather it tells more about *how valuable* a credit customer has been in the past.

I hate to admit that I have only a slightly better than mediocre credit rating because five years ago I paid off my 30 year mortgage in under seven years, and now no longer have that line of credit. In addition, I only have two credit cards, with small limits that I often bump up against, even though I usually pay my bill in full every month. The fact that I’ve had these cards for over 25 years works in my favor, but somehow not enough to give me an interest rate of under 20%. Hence, I rarely carry a balance.

Until credit ratings take into account an individual’s other assets, income, and employability, they’re pretty useless in determining who is truly credit worthy.

[michigoose]

I’ve often thought about the similarities between the “subprime default” issue and the what the S&Ls went through in the 1980s.

Back then, a key component of the failures were the inflated appraisals that loan officers solicited and accepted to justify their loans. Today, the appraisal industry has vastly higher standards although I’m sure we’ve all heard of appraisers who’ve felt pressured into delivering specific valuations, or lose future business.

Today, credit reporting and rating agencies take the place of appraisers. A FICO score really doesn’t tell much about anyone’s ability to pay back money, rather it tells more about *how valuable* a credit customer has been in the past.

I hate to admit that I have only a slightly better than mediocre credit rating because five years ago I paid off my 30 year mortgage in under seven years, and now no longer have that line of credit. In addition, I only have two credit cards, with small limits that I often bump up against, even though I usually pay my bill in full every month. The fact that I’ve had these cards for over 25 years works in my favor, but somehow not enough to give me an interest rate of under 20%. Hence, I rarely carry a balance.

Until credit ratings take into account an individual’s other assets, income, and employability, they’re pretty useless in determining who is truly credit worthy.

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