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Navydoc
ParticipantAlex, that’s the craziest thing I’ve ever heard. I may very well be able to afford to take the hit you describe, but I would be extremely upset about it. It would mean that the $200k I’ve saved over the past few years was effectively flushed down the toilet. You’re right, I could handle it, but I just don’t want to. Especially since that money would have been sacrificed because of a bunch of Kool-Aid drinking fools who artificially inflated the housing market.
I’ll continue to rent and keep my money, thanks.
ParticipantAlex, that’s the craziest thing I’ve ever heard. I may very well be able to afford to take the hit you describe, but I would be extremely upset about it. It would mean that the $200k I’ve saved over the past few years was effectively flushed down the toilet. You’re right, I could handle it, but I just don’t want to. Especially since that money would have been sacrificed because of a bunch of Kool-Aid drinking fools who artificially inflated the housing market.
I’ll continue to rent and keep my money, thanks.
ParticipantI really don’t think it’s fair accusing HLS of trolling on this website. If you look at the post by miramesa, he was asking HLS outright for the information, it certainly wasn’t solicited in any way. I do believe that one of the advantages of monitoring a website like this is the potential to meet someone you trust considering the market right now.
Considering how often HLS posts in this forum I don’t think he is a troll, and I certainly would have no reservations contacting him for a loan when the time is right. Who knows, maybe I’ll track down SD reator when the time comes for me to buy! (Does this mean I can’t post anymore?)
ParticipantI really don’t think it’s fair accusing HLS of trolling on this website. If you look at the post by miramesa, he was asking HLS outright for the information, it certainly wasn’t solicited in any way. I do believe that one of the advantages of monitoring a website like this is the potential to meet someone you trust considering the market right now.
Considering how often HLS posts in this forum I don’t think he is a troll, and I certainly would have no reservations contacting him for a loan when the time is right. Who knows, maybe I’ll track down SD reator when the time comes for me to buy! (Does this mean I can’t post anymore?)
ParticipantI really don’t think it’s fair accusing HLS of trolling on this website. If you look at the post by miramesa, he was asking HLS outright for the information, it certainly wasn’t solicited in any way. I do believe that one of the advantages of monitoring a website like this is the potential to meet someone you trust considering the market right now.
Considering how often HLS posts in this forum I don’t think he is a troll, and I certainly would have no reservations contacting him for a loan when the time is right. Who knows, maybe I’ll track down SD reator when the time comes for me to buy! (Does this mean I can’t post anymore?)
ParticipantWow, didn’t think this post would attract this much attention!
Temeculaguy, I know their knowledge didn’t come from housing blogs. My point was to say that you are right, the major news media stories are actually sinking in, as evidenced by my observation in an arena as diametrically opposed to the financial markets as a Sunday morning post-call breakfast.
And yes, to those who question it, I do have $183,000 down, and if I found a property I was happy with I would accept the possible depreciation if I can afford the monthlys. I am a military physician, and am starting to tire of moving around. Hopefully I will get to settle in SD in 2009, and I WILL be looking to buy then. If It still looks like a long way to the bottom then, I may change my mind. It is nice to be in this position, and I’m not going to lock myself into any position considering how volatile the economy appears to be.
ParticipantWow, didn’t think this post would attract this much attention!
Temeculaguy, I know their knowledge didn’t come from housing blogs. My point was to say that you are right, the major news media stories are actually sinking in, as evidenced by my observation in an arena as diametrically opposed to the financial markets as a Sunday morning post-call breakfast.
And yes, to those who question it, I do have $183,000 down, and if I found a property I was happy with I would accept the possible depreciation if I can afford the monthlys. I am a military physician, and am starting to tire of moving around. Hopefully I will get to settle in SD in 2009, and I WILL be looking to buy then. If It still looks like a long way to the bottom then, I may change my mind. It is nice to be in this position, and I’m not going to lock myself into any position considering how volatile the economy appears to be.
ParticipantWow, didn’t think this post would attract this much attention!
Temeculaguy, I know their knowledge didn’t come from housing blogs. My point was to say that you are right, the major news media stories are actually sinking in, as evidenced by my observation in an arena as diametrically opposed to the financial markets as a Sunday morning post-call breakfast.
And yes, to those who question it, I do have $183,000 down, and if I found a property I was happy with I would accept the possible depreciation if I can afford the monthlys. I am a military physician, and am starting to tire of moving around. Hopefully I will get to settle in SD in 2009, and I WILL be looking to buy then. If It still looks like a long way to the bottom then, I may change my mind. It is nice to be in this position, and I’m not going to lock myself into any position considering how volatile the economy appears to be.
ParticipantCongratulations on finding the best resource on the current housing mess in SoCal. Be warned however thet when you ask a question some here would consider “stupid” you expose yourself to some torment. Don’t worry about it, it’s an anonymous forum, and nobody really cares. I urge you to review some of the archives in this forum, it will greatly help get you up to speed as to why some will think you asked a stupid question.
Just remember one thing, banks are not in business to get you into a home. They are in business to make money, plain and simple. In order to sell their product, a home loan, (and make no mistake, it IS a product) they need to advertise. Recently the best advertisement has been these 2/28, 5/25 etc. loans in which you pay an introductory teaser rate, which is often 1-2% interst. These are the types of loans that are getting people into trouble. A normal ARM which is simply tied to the prime rate is no problem, you simply pay a slightly higher rate when the interst rate goes up slightly, but you break even when the rate goes back down. However, with these newer teaser ARMs the introductory rate isn’t just a gift, they recoup the losses at the end of the loan period by raising the rates to a level EVEN HIGHER than what a normal ARM would adjust to. This is what is meant, by and large, by loans resetting. The banks simply will not continue to take a loss on the interest rate to “keep people in their homes”.
Unfortunately these loans had the well known (in this foum anyway) of inflating home values beyond normal affordability in the median income range, as affordability became defind by the monthly payment at the teaser rate. The banks are suddendly going to become de facto homeowners when people can’t make the payment at the new rates, and can’t refi when the home is worth less than they owe on it.
I hope that helps, don’t be afraid to post. Amid the flames someone will attempt to answer your question.
ParticipantCongratulations on finding the best resource on the current housing mess in SoCal. Be warned however thet when you ask a question some here would consider “stupid” you expose yourself to some torment. Don’t worry about it, it’s an anonymous forum, and nobody really cares. I urge you to review some of the archives in this forum, it will greatly help get you up to speed as to why some will think you asked a stupid question.
Just remember one thing, banks are not in business to get you into a home. They are in business to make money, plain and simple. In order to sell their product, a home loan, (and make no mistake, it IS a product) they need to advertise. Recently the best advertisement has been these 2/28, 5/25 etc. loans in which you pay an introductory teaser rate, which is often 1-2% interst. These are the types of loans that are getting people into trouble. A normal ARM which is simply tied to the prime rate is no problem, you simply pay a slightly higher rate when the interst rate goes up slightly, but you break even when the rate goes back down. However, with these newer teaser ARMs the introductory rate isn’t just a gift, they recoup the losses at the end of the loan period by raising the rates to a level EVEN HIGHER than what a normal ARM would adjust to. This is what is meant, by and large, by loans resetting. The banks simply will not continue to take a loss on the interest rate to “keep people in their homes”.
Unfortunately these loans had the well known (in this foum anyway) of inflating home values beyond normal affordability in the median income range, as affordability became defind by the monthly payment at the teaser rate. The banks are suddendly going to become de facto homeowners when people can’t make the payment at the new rates, and can’t refi when the home is worth less than they owe on it.
I hope that helps, don’t be afraid to post. Amid the flames someone will attempt to answer your question.
ParticipantCongratulations on finding the best resource on the current housing mess in SoCal. Be warned however thet when you ask a question some here would consider “stupid” you expose yourself to some torment. Don’t worry about it, it’s an anonymous forum, and nobody really cares. I urge you to review some of the archives in this forum, it will greatly help get you up to speed as to why some will think you asked a stupid question.
Just remember one thing, banks are not in business to get you into a home. They are in business to make money, plain and simple. In order to sell their product, a home loan, (and make no mistake, it IS a product) they need to advertise. Recently the best advertisement has been these 2/28, 5/25 etc. loans in which you pay an introductory teaser rate, which is often 1-2% interst. These are the types of loans that are getting people into trouble. A normal ARM which is simply tied to the prime rate is no problem, you simply pay a slightly higher rate when the interst rate goes up slightly, but you break even when the rate goes back down. However, with these newer teaser ARMs the introductory rate isn’t just a gift, they recoup the losses at the end of the loan period by raising the rates to a level EVEN HIGHER than what a normal ARM would adjust to. This is what is meant, by and large, by loans resetting. The banks simply will not continue to take a loss on the interest rate to “keep people in their homes”.
Unfortunately these loans had the well known (in this foum anyway) of inflating home values beyond normal affordability in the median income range, as affordability became defind by the monthly payment at the teaser rate. The banks are suddendly going to become de facto homeowners when people can’t make the payment at the new rates, and can’t refi when the home is worth less than they owe on it.
I hope that helps, don’t be afraid to post. Amid the flames someone will attempt to answer your question.
ParticipantGreat tip SD Realtor. Just came back from Venice Beach for the first time, and I think I could go there every Saturday. Gets freakier the further North you go! Some of the restrooms would give “The Worst Restroom in Scotland” (see Trainspotting) a run for its money though.
LA definitely does have positives, but sometimes it hard to look past the negatives, and for that I apologize. Having lived in San Diego during residency I just enjoy the slower pace and natural beauty of San Diego more. Venice Beach was nice, but I really look forward to hiking in Torrey Pines again.
ParticipantGreat tip SD Realtor. Just came back from Venice Beach for the first time, and I think I could go there every Saturday. Gets freakier the further North you go! Some of the restrooms would give “The Worst Restroom in Scotland” (see Trainspotting) a run for its money though.
LA definitely does have positives, but sometimes it hard to look past the negatives, and for that I apologize. Having lived in San Diego during residency I just enjoy the slower pace and natural beauty of San Diego more. Venice Beach was nice, but I really look forward to hiking in Torrey Pines again.
ParticipantGreat tip SD Realtor. Just came back from Venice Beach for the first time, and I think I could go there every Saturday. Gets freakier the further North you go! Some of the restrooms would give “The Worst Restroom in Scotland” (see Trainspotting) a run for its money though.
LA definitely does have positives, but sometimes it hard to look past the negatives, and for that I apologize. Having lived in San Diego during residency I just enjoy the slower pace and natural beauty of San Diego more. Venice Beach was nice, but I really look forward to hiking in Torrey Pines again.
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